How To Spot a Forex Scam

1
How to Spot a Forex Scam

• Presented byThe Forex Secret

2
Introduction

• Trades over 5 trillion a day, including currency
  options and futures contracts.
• An unregulated spot market that trades instantly,
  over the counter, with no accountability
•  Forex scams offer unscrupulous
• operators the lure of earning fortunes

3
Back in the Day The Point-Spread Scam

• Based on computer manipulation of bid-ask
• spreads.
• The point spread between the bid and ask that
• reflects the commission of a back-and-forth
  transaction processed through a broker.
•  The scam occurs when those point
• spreads differ widely among brokers.

4
The Signal-Seller Scam

• Signal sellers are retail firms, pooled asset
  managers, managed account companies, or
  individual traders that offer a system
• for a
  daily
• weekly
  
• 
  monthly fee
• That claims to identify favorable times to buy
  or sell a currency pair based on
• professional recommendations.

5
The Signal-Seller Scam

• They tout their long experience and trading
  abilities
• Plus testimonials from people who vouch for how
  great a trader
• Many of signal-seller scammers simply
• collect money from a certain number of
• traders and disappear.

6
"Robot" Scamming

• Tout their systems ability to generate automatic
  trades that, even while you sleep, earn vast
  wealth.
• Robot must include the testing of a trading
  systems parameters and optimization codes.
• Codes are invalid the system will
• generate random buy and sell signals.

7
"Robot" Scamming
This will cause unsuspecting traders to do
nothing more than gamble. Although tested systems
exist on the market, potential forex traders
should do some research before putting money into
one of these approaches.
8
KEY TAKEAWAYS

• Many scams in the forex market are no longer as
  pervasive due to tighter regulations, but some
  problems still exist.
• One shady practice is when forex brokers
• offer wide bid-ask spreads on certain
• currency pairs, making it more difficult
• to earn profits on trades.

9
KEY TAKEAWAYS

• Be careful of any offshore, unregulated broker
• Individuals and companies that market
  systemslike signal sellers or robot
  tradingsometimes sell products that are not
  tested and do not yield profitable results.
• If the forex broker is commingling funds
• it could be an indicator that something
• fishy is going on

10
Theforexsecret.com