What Every Forex Trader Should Know
Understand this. There are good people. And bad people. These tricky scammers know that ‘get rich quick’ schemes are tempting to the public. The swindlers have mastered the cheating game and they know how to play with their words. Always remember and tell yourself that there is no such thing as a free lunch. If forex traders want to be successful like Donald Trump, they have to earn it. Should any forex trader is encountered with a potential scammer, he/she is highly encouraged to check the company. Investopedia recommends the Background Affiliation Status Information Center system, while About.com introduces Commodity Futures Trading Commission (CFTC), the Better Business Bureau, or Consumer Protection bureau.
The Hall of Shame- Infamous Convicted Forex Scammers
Russell Cline was the founder of Orion International. Because of his excessive spending on luxury cars, private jets and many more not really worth mentioning, he lied to his clients that he lost 97% of their money. He blamed poor trades and typographical errors, and requested for additional funds to make the money back. He was charged in 2004 and released in 2012.
Joel N. Ward
Joel Ward, the president of Learn:Forex, an online currency trading institute, was charged with fraud and money laundering. Ward was sentenced to nine years in Federal prison and three years of supervised release.
A former American football player, Russell Erxleben founded Austin Forex International and became a financial investor in forex trading. Erxleben was charged with securities fraud in 1999. The forex investor was sentenced to 84 months in prison and released in 2005. Erxleben is a living proof of the phrase ‘a leopard never changed its spots’. He was arrested again on January 24, 2013 on various federal charges.
Should Any Forex Trader Spot These Warning Signs, Avoid and Report
So we can all agree that there are swindlers out there trying to separate forex traders from their hard-earned money. It makes sense why there are many forex scammers out there, too. The forex market has over $2 trillion traded daily. Some people get the idea that forex is a scam. It’s not. It takes a lot of time and dedication to make a living as a forex trader. To give you an easier time, here are some warning signs of a potential scammer.
Any company that
- assures little/no risk
- promises large profit
- contacts you by unsolicited phone calls (very common in Singapore)
- pressures you to quickly transfer money