Unfortunately Forex trading offers a big possibility for scam. This is because Forex has an unbelievable daily turnover of about three trillion dollars that makes many new Forex traders think that they can receive a part of it. Besides they are further seduced by great publicity which convinces them that they will be rich in no time at all.
Indeed reality quickly destroys their unrealistic expectations when most Forex beginners start trading. Their resultant frustrations then make them search for any and all quick-fix solutions. As a consequence an extreme Forex market is generated by this worldwide phenomenon which is a paradise for Forex scams.
A good way to understand the dimension of this problem is to imagine the division of Forex traders as a big pyramid with the 5% of successful traders at the top. If you are a new trader then you will form part of the gigantic base of this structure. Forex scams usually reside between the top 5% and the bottom 10%. Simply the majority of these individuals are just failed Forex traders.
Basically they have tried to construct their own Forex systems but were unsuccessful in solving the many complexities in Forex. They may have even achieved some degree of output by trading profitably although for short periods only. They almost certainly would have failed to manage the problem of optimization that is created by Forex constantly changing its patterns over time. As many Forex scams produce Forex robots by coding their defective trading ssystems it is no surprise that most Forex bots do not work. How can you protect yourself from the Forex scam?
Here are some ideas which may help you:
1. You can receive many hints from their advertising literature. E.g. are there any real specifications stated that can actually be verified? If you find just a long sales letter which is supported by a string of autoresponder letters with bizarre headings then you are almost certainly dealing with a Forex scam.
2. Does their literature state unrealistic performance factors? If you read statements which are claiming that the product can make you 100% return in a matter of days or things like "we can help you achieve 100% trading success" then beware. In reality such gains are almost impossible to achieve.
3. The Forex scam will try to attract your attention by using sensationalized advertisements. E.g. they will make great use of words which generate powerful marketing impacts and will deploy them at all possible opportunities. Such a word is "secret". Have a look for titles like "The Five secrets that Expert Traders are not telling you" or "The Shocking Secrets of Forex".
You must always seek sound Forex education in order to provide yourself with realistic Forex objectives and a powerful trading mindset so that you can prevent yourself becoming the next victim of a Forex scam.