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A forex trading scam is any scheme employed by certain people to trick individual traders by trying to convince them of gaining a high profit margin by trading within the foreign exchange market. The forex market has long been plagued by swindlers able to prey on the gullible so that you can defraud them of cash. Gullible foreign exchange investors may be defrauded of thousands of dollars in a forex trading scam.

A normal case of a forex scam happens when investors are promised with tens of thousands of dollars in profits in just a matter of a number of weeks or months in return for an investment of a thousand or so dollars. When an investor agrees to take part within the scam, the investors money is never actually traded on the forex market. It is usually diverted to an unknown account for the personal advantage of the scam instigators.

The nature of the forex market is which it is a zero-sum market. This simply implies that what ever one trader gains, another trader loses. Unlike in the currency markets, there is absolutely no instance that everyone profits within the foreign exchange market at anyone time. There are always winners and you'll find losers, even though it might not be on a single transaction.

Forex scams may be identified for Highly recommended Site their common characteristics. One of the obvious signs of such scams includes promises of large profits. Most forex scams try and attract unknowing victims by guaranteeing high returns for low risk investments in certain currencies. Masterminds of forex scams also use high pressure tactics to convince investors to immediately send money through money transfers or through overnight delivery companies.

These scams may come your way through advertisements in newspapers and magazines. Such advertisements promise high rewards for supposedly low risk investments on the foreign exchange market. Some scams may even make utilization of unsolicited telephone calls to contact prospective investors and use their high pressure tactics to convince people to take part and invest in their scam.

Among the ways to avoid being a victim of such forex trading scams is by being aware of these signs. A different way is through a bit of investigation. Before investing on a supposedly attractive deal that you suspect to be a scam, try to investigate its background.