| Whenever there is an opportunity to make large | | | | pennies a day to reach millions of potential marks. |
| amounts of money, there will be people who are | | | | Before you part with credit card numbers, bank |
| eager to jump right in and start making money. And | | | | account transfer permissions or wire transfers, be sure |
| where there are people who are eager to get rich | | | | to check out the company with all the authorities listed |
| quick with a minimum of effort on their part, there are | | | | above. Beware high pressure sales tactics. Legitimate |
| fraudsters waiting to take their money. Experienced | | | | dealers don't need to contact you with unsolicited |
| traders are wise enough to avoid the frauds - it's the | | | | email, or pressure you into doing business with them. If |
| new traders who are most vulnerable to the forex | | | | someone is pushing you to invest right now, tonight, this |
| scams that are slipping into the currency exchange | | | | moment, it should set off huge warning signals in your |
| market. The U.S. CFTC (Commodity Futures Trading | | | | head. A real dealer is more concerned with keeping |
| Commission), which regulates futures and commodities | | | | you as a customer for the long haul. He'll be patient |
| trading, warns new investors to be wary of frauds | | | | while you check out his credentials and reputation. A |
| and scams that promise huge profits from your | | | | phony dealer can't afford that luxury - he needs to get |
| investments, in and out of the Forex market. The | | | | you on the hook right now, or risk losing his score. Be |
| CFTC has issued several Consumer Fraud Alerts in | | | | cautious of companies that tell you they'll trade for you |
| connection with foreign currency trading. They offer | | | | on the 'interbank' market. The interbank market is a |
| the following tips to help you avoid being scammed. Be | | | | term for a loose network of currency traders that |
| skeptical of high-profit-low-risk come-ons. "I made | | | | include banks, financial institutions and large |
| $1900 in one minute!" touts one sidebar ad for a Forex | | | | corporations. Fraudulent currency trading firms often |
| trading company. Ads that promise high returns on | | | | tell customers that they'll trade for them on the |
| small investments with little or no risk to you are | | | | interbank market where the prices are better. It should |
| tempting bait. The fact is that while there are certainly | | | | be a warning signal to you to stay away. While |
| big profits to be made in forex, there are | | | | technically not 'scams', you should also be wary of |
| correspondingly large losses. And most novice traders | | | | paying good money for training courses that promise |
| drop out of active trading by the end of their first year | | | | you systems that are 'guaranteed' to earn you high |
| because they can't afford the risk. Be suspicious. | | | | profits. If the course advertises that their system will |
| Period. Before you part with a penny, thoroughly check | | | | earn you huge profits with minimal risk, or guarantee |
| out the company or trader you're planning to do | | | | you 40% return on your money in six weeks, take the |
| business with. Check the CFTC's consumer fraud alert | | | | promises with a huge grain of salt. Experienced |
| page. Check to see if the company is registered with | | | | traders understand that the forex market is a time |
| the CFTC, or is a member of the National Futures | | | | market - while it's possible to make large amounts of |
| Association. Check to see if there's any disciplinary | | | | money in short-term trades, finding those profitable |
| action against the firm or company. Get even more | | | | trades is a matter of being in the right place at the right |
| basic. Get a valid address and telephone number, and | | | | time... which means putting in the time and the effort to |
| verify that it belongs to the company. Check to be | | | | be there. They also understand that they'll lose more |
| sure the person you're dealing with actually works for | | | | often than they win - the trick is to keep your losses |
| the company. Especially if you're doing business on the | | | | short and your profits long. Any company that |
| Internet, it's very easy for a scammer to fake | | | | guarantees that you'll make a profit on all or most of |
| credentials. Be wary of sending money over the | | | | your profits is coloring their advertising. Stick with |
| Internet. The Internet has made it incredibly easy for | | | | trusted companies whose credentials you can verify |
| scammers to operate. It only costs $6.95 a month to | | | | and whose background you can check. |
| have a professional looking web site hosted - that's | | | | |