There are various reasons, unknown, as to why people fall into forex scams. The main reason is total ignorance regarding trading, the market, and the way it works. Usually, people who are new, to investing, not existing stock-traders and bullion traders, but absolute novices who have never traded anything on a global marketplace, view forex as a goldmine. They think that because the market is open 24 hours a day, all they need to invest regular amounts of money, leaving it in the hands of their brokers, and sit idle, without even looking once at the computer screen, to gauge whether their pairs are making them money or not.

1. Forex Scam Review:-
There are various reasons, unknown, as to why people fall into forex scams. The main reason is total
ignorance regarding trading, the market, and the way it works. Usually, people who are new, to
investing, not existing stock-traders and bullion traders, but absolute novices who have never traded
anything on a global marketplace, view forex as a goldmine. They think that because the market is open
24 hours a day, all they need to invest regular amounts of money, leaving it in the hands of their
brokers, and sit idle, without even looking once at the computer screen, to gauge whether their pairs are
making them money or not.
With so much of money, I.e trillions of dollars floating around, an unregulated market that trades
without any accountability, forex scams only multiply, with the temptation of earning a lot of money, in
a very little amount of time. Many of the usual scams, have become obsolete, due to clampdowns by
regulatory bodies, on foreign exchange commissions. One of the oldest scamming methods was based
on the computer manipulation of bid/ask spreads. The point spread between the bid and the ask usually
reflects the commission of a to and fro transaction, processed through a brokerage. The scam is when
these point spreads, are varied, widely, among brokers. Brokers, more often than not, do not offer the
normal two to three point spread in the EUR/USD (one of the highest traded currencies in the world),
for example, but spreads of seven pips or more are there. Even if there are four or more pips on every
million dollars of trade, any gains, resulting from a good investment decision, will be swallowed up by
way of commissions. This method of scamming has come down in the recent past, but one must be
careful of offshore retail brokers, who are not regulated by the regular forex authority institutions.
A very popular modern day con, is the signal seller. A signal seller may be a retail firm, managed
account company, an individual investor or a pooled asset manager, and they promise to trade on
professional recommendations, and empirical evidence, that makes everyone rich in equal parts. They
give tall claims about their experiences, and trading abilities, and give the testimonials of people, who
are also scam artists. This lures the unsuspecting trader, into handing over an amount of money, for
gaining trade advice. This rubbish advice, is sold regularly, especially to people who have just joined
the currency market.
Some systems, themselves are corrupt, operating on faulty computer algorithms, that give out wrong
signals. Now, softwares, usually, are perceived by people to be foolproof. Sadly, this is not the case, as
even a software manufacturer can tamper with his system, getting people to buy it. The new method of
automating trades, only adds to this danger. Test out the trading system's parameters, and optimization
codes. If these are invalid, random buy and sel signals are generated. This causes gullible traders to
gamble more.Always use a trading platform through a reputable manufacturer, like the Meta Trader 4.
There are many brokers who may also lure you into a potential forex scam. Review broker history, and
review broker reputation in the market. Avoid getting into a forex scam. Review your software system,
and the way it operates. Never download these systems from torrents on the internet, for free, thinking
you're saving money by trading on a free system is disastrous. Someone would have tampered with
something, and set you up with a faulty trading platform. Make well informed decisions, based on
research, when participating in forex trade.