A Forex Scam is a trading scheme that defrauds traders. Currency trading became a common form of fraud in early 2008, when the financial crisis hit. According to Michael Dunn, commissioner of the U.S. Commodity Futures Trading Commission, currency trading became an extremely common form of fraud. This article will look at some of the warning signs of a forex scam. The purpose of this article is to help you avoid becoming a victim of a foreign exchange scam.
If you’re interested in making money from trading in the forex market, you’ve probably heard that you can make tens of thousands of dollars in a few short weeks or months. This is a common scam, but investors are often ripped off when they invest just a few hundred dollars. These investors’ funds are never actually placed in the market by a legitimate dealer and are diverted to the scammers. National Investment Consultants, Inc. was sued by the CFTC for misrepresenting the market and stealing more than $2 million from customers.
Most scammers claim to offer tens of thousands of dollars in a matter of weeks or months. Nevertheless, you should avoid scams by reading reviews online and checking the CFTC’s website. A reputable forex broker should be licensed, and this means they meet the government’s financial requirements. Obtaining a financial license takes time and money, and scammers don’t bother to do this. Alternatively, you could opt to use a private company to obtain a fake license.