All the regular internet surfers might come across different sales pages selling several products related to forex and have huge hype. All these products or websites claim to be the best in online forex trading offering big money in the shortest time period but without investing too much capital. Anyone can use these products even without any knowledge of trading. People mostly get shocked after purchasing these products and come to realize that these just tactics for getting more online customers. So, in order to avoid these scams and helping you out some tips are mentioned below that will help you a lot:
Look out for forex trading track record
Though it seems simple and related to common sense but still there are many traders who buy forex trading systems without getting information about the track records. In this case, there is nothing to wonder about their loss. You should not get attracted to statements like 100% success, ever financial freedom; earn millions in just two years and things like this. Despite this you must search for things that exist in real such as trading statements which brokers use regularly.
Read Expert Reviews
For avoiding forex scams reading expert reviews is of great importance. Read reviews that are unbiased about any product related to forex. You can find reviews about forex products available on different sites and blogs. These reviews not only help you in avoiding scams but also offer information that targets your specific needs.
Checking proof of Income
There are many websites having content and products related to forex trading but only an authentic one has proof of income on the site. These proofs offer you a feeling that the company stands behind its products and also prove its effectiveness. However, trading system’s authenticity is not proved by income proofs but still it assures that system is legit. Income proofs also tell a lot about the past performance of the trading systems. So, you can easily get an idea that whether it is a scam or a genuine system.
Searching largest drawdowns
All the forex strategies have drawn downs but the thing to search is the largest drawdown. Basically, drawdown means that account for trading may experience margin or drop in value but trade is open. Reasons of these losses aren’t easy to understand but you must look largest drawdowns such as 5%-8%. Trading strategy of the system tells that they can be off days or even months. These make sure that you’re comfortable with the downswings.
Avoid transferring cash on the internet
Transferring cash over the internet is risky and there are chances that it gets lost. There are also many companies that don’t mention their contact address on their sites. Also, avoid these sites. For more info: http://www.consumer.ftc.gov/articles/0060-10-ways-avoid-fraud
Accreditation of forex brokerage firm
Before starting the business with any Forex firm makes sure that it is accredited with United States commodities future commission (CFTC). Most of the companies are without this accreditation and you must avoid them.
In short, all the above-mentioned information will surely help you a lot in avoiding forex scams.