Spotting a Forex Scam

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Brian Twomey

10 Aug, 2012

in Forex


Warning Signs
Other scams and warning signs exist when brokers won't allow the withdrawal of monies from investor accounts, or when problems exist within the trading station. Can you enter or exit a trade during an economic announcement that is not in line with expectations? If you can't withdraw money, warning signs should flash. If the trade station doesn't operate to your liquidity expectations, warning signs should again flash. An important factor to always consider when choosing a broker or a trading system to satisfy your personal goals is to be skeptical of promises or promotional material that guarantees a high level of performance.

Of the 193 cases filed with the NFA in 2008 for rules and law violations, 166 were settled within nine months, but only 23% received lost funds. Therefore, similar to the circumstances that present themselves in a Ponzi scheme, even when those who deliberately engage in forex scams are brought to justice, investor reimbursement is not guaranteed.

Summary
To investigate your broker, the Background Affiliation Status Information Center system was introduced. Many of these changes have driven out the crooks, the unwanted and the old scams and legitimized the system for the many good firms. However, always be wary of new forex scams, as the temptation and allure of huge profits will always bring new and more sophisticated types to this market.

Professor Brian Twomey can be contacted at Inside the Currency Market

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Re: Spotting a Forex Scam

pboyles;1941808
Could the professor kindly list a few systems that can potentially earn substantial income?



Although many crooks sell systems, there are plenty of sellers who are decent and legitimate and have systems that have been properly tested to potentially earn substantial income.


Possibly, but would they be trying to sell them on this forum if they had a proven system with track record? To the right financial institute any system proven would have significant value compared to selling it to the herd and all the hazzle that comes with that.

and once sold to a major financial company without exclusivity then is a fairly strong selling point if indeed you want to include the herd?

Jan 05, 2013

Member (289 posts)

Re: Spotting a Forex Scam

:lol:

Sep 22, 2012

Member (647 posts)

Re: Spotting a Forex Scam

Could the professor kindly list a few systems that can potentially earn substantial income?



Although many crooks sell systems, there are plenty of sellers who are decent and legitimate and have systems that have been properly tested to potentially earn substantial income.

Aug 15, 2012

Member (8123 posts)

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