This is a question I get more often than I should and the answer, if you want a yes/no answer is no it is not a scam. The reality is however that there are a lot of scams associated with and connected to forex trading. Why is forex trading such a target for scams? It is basically because of it’s accessibility. Anyone with a computer, internet and a trading account can have access to the forex market. A lot of people use impressive looking graphs and figures to lure people into giving away their hard earned cash to get a piece of the market. If for is so synonymous with scams is it a wise idea to trade it? Well luckily there are ways to avoid being scammed in forex trading.
Never pay your money into an individuals account.
If you want to start trading you will open your own account with a forex brokerage. You will pay money into this account ONLY. You are the only person that should be allowed access to this account. Make sure the forex brokerage you use is FSB regulated.
Do not purchase software without a certified track record.
If trading software truly works you will be able to get a certified track record from the software provider. Make sure the track record is certified by a large auditing company such as KPMG of Price Waterhouse Coopers or something similar. If the software provider cannot provide this stay away.
If it seems to good to be true it DEFINITELY is.
If someone has found the secret to trading which can meek you a billionaire why would they share it with you? Are they a billionaire? Trading can be very profitable but if it was that easy to become a millionaire why is anyone still working for a salary? Do not believe people when they promises you the stars and the moon. Forex trading should be seen as a business. Yes you can become successful but you will not become a millionaire over night.
Make sure your provider has a FSB license.
Although this is not a requirement for software or education providers, you can be sure if you do use FSB regulated entities you will be covered up to a certain extent. It is important for the provider to have some affiliation to a regulating or regulated body. If they do not it means they could be anyone from the street.
Make sure they have a physical office and visit it if you can.
This is one of the best ways to spot a scam. If the company selling you a product does not have an office it means they have not been in the market for long. If you can go to their office do so as it will tell you a lot about the size of the company as well as the value of the product.
If you use these 5 simple steps you will be able to separate the scams from the good products. Always do a bit of research before jumping into something. So in conclusion, no forex is not a scam, it is however your responsibility to avoid scams associated with forex trading.