What is Forex?
Forex trading is the practice of buying and selling currencies, bonds, commodities and interest rates for a profit. It is basically betting on the market, meaning the price you buy or sell a currency at. It is an interesting activity but there are very few laws in place that protect you from scammers.
This means that you can trade with practically anybody in the market. The problem is that the potential for a scam is very high because people with scammers in mind will try to exploit the fact that the market is unregulated.
Understanding the Pitfalls of Forex Fraud Sites
There are different types of fraud that scammers try to work. Some of the sites are designed to reel you in by offering a site that appears to be genuine. The site you are invited to visit is not as the description or the official URL show. It looks like a proper and credible website but it is a scam.
When you visit the fake website, you will see a login page that will allow you to sign up to the fake site. The site will show you a user name and an email ID. The next step is to create an account. The site you are used to will provide you with another email ID. Remember, make sure the email address is not the same as the one you have signed up with in real life. This is what is called spoofing.
Untrustworthy Forex Scam Sites
There is no shortage of fake forex websites and blogs. In fact, these online webmasters and peddlers of Forex Fake Bargains have succeeded in making a decent living of enticing people into believing that there is a one-stop solution to your forex trading woes.
Despite such advice, forex scams never come cheap. Investing your money with a bad guy is never a good idea and this is one of the reasons why it is so important to do your own research when choosing a Forex site that you would like to engage. This means that you should be aware of the scams that are out there, do not accept offers from unauthorized brokers, and do not invest in Forex software or web links that are not certified by Batswana Professional Trading Community.
As a rule of thumb, you should spend less than 5% of your monthly income on building up a reliable portfolio. As you practice your trading skills, you will not only learn a lot about the market but also develop a keen eye and will become a great trader yourself.