Eg forex victims

Posted: Bangladit Date of post: 03.07.2017

A new market or investment opportunity opens up.

A few people make excellent returns in a short amount of time and advertise the investment to their friends. Soon there is a rush of inexperienced, unsophisticated investors, hoping to make big money without any risk and little knowledge.

Top 17 Scams in Malaysia – kysiqubonypun.web.fc2.com

This only attracts an equal number of frauds and scammers who are more than happy to help people part with their money. In the end, a large crowd of frustrated people exit, vowing never to invest again.

eg forex victims

However, fraud has also plagued the market during the same period. In , the CFTC , the U. In a number of cases, the money never even entered the market, but was simply stolen.

Consider one example of a forex scam. In , Russell Cline founded Orion international—a brokerage specializing in forex trading. But the brokerage was a complete fraud. Cline was sentenced to only 8 years in prison, and investors received a tiny amount of their money back.

eg forex victims

The retail forex market has grown explosively, as trading platforms have made the market increasingly accessible to consumers. Russel Cline illustrates a principle that applies to all forex, as well as other kinds of investments. If an opportunity sounds too good to be true, it probably is. Forex trading is a sophisticated and challenging type of investment, and traders can only profit if they are smarter than the rest of the market.

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Every trader who considers entering the market should remember that his account is not insured under any government agency, and if the brokerage or investment fund proves to be a fraud, the money is simply gone. How then, do you recognize a fraud before losing?

First, notice the history of the company. Most frauds have been launched in the past few years, but a company with longevity has a better chance of being legitimate.

TYPES OF WHITE COLLAR CRIME AND SCHEMES

Also, pay attention to how your brokerage or fund actually works and makes money. Most importantly, never believe promises that are unrealistically good. If a brokerage can deliver astronomical returns, why do they need your money?

eg forex victims

In all, good thinking and hard questions at the beginning can save you a lot of money in the end. Talk with others about this on our message board. Disclaimers, Message Board Guidelines and Privacy Policy.

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