Scam Watch

Making alternative investments outside your standard portfolio can be a smart strategy if you follow a disciplined path. One of the common forms of trading outside of equities are the foreign exchange currency markets, otherwise known as Forex. Forex markets are fast moving, dynamic international venues which can provide great opportunities for profits as well as potential loses. Since there is a steep learning curve, a number of products have been introduced to help introduce new investors to Forex, as well as upgrading the skills of existing traders. While some of these products may provide useful education, another set of them are largely scams and should be avoided – in this article, we help you determine the true products from the scams.

Before you even start considering a forex trading platform or educational products, find as much free information as you can about currency exchange. There are a number of reliable educational resources for aspiring traders that are absolutely free ranging from articles to tutorials and, even better, forums where experienced traders can help answer your questions. Take time to educate yourself as much as possible with these resources, so you can determine where you might have gaps in knowledge that require you to purchase a product or course.

Always start trading with a demo account where you don’t have to deposit any money – this will give you an opportunity to build up the experience necessary to see through any potential trading scams. Disciplined traders know to question every decision that you make to the finest detail, and learning this skill will help you seek out the genuine over the fake. There are good, paid resources on the market which can help advance your trading, but you need to carefully evaluate the different options available.

When selecting a trading site (or broker) do as much background research as possible so that you know what to expect. There are a number of competing online trading platforms that you can compare for reliability, software features, speed, cost and trustworthiness – go with the option that works best for you after conducting thorough background research. Always make sure any trading site has 24/7 support, reliable deposit and withdrawal options and the proper certification.

Once you do find a site you are comfortable with, you’ll want to start with a demo account or by making a small deposit. Even if you’re an experienced trader, each platform has a learning curve, so it’s best to limit your initial risk. If you’re just starting out, practice on a demo account for several months before you consider making an initial deposit. There is a high level of risk in any trade, so you’ll want to make sure to ensure that you limit your potential losses and try to carefully evaluate what to do with any profits. Many exchange sites will make it hard to withdraw your funds (while depositing is quite easy) – this should be a sign that the site is a “soft scam” that doesn’t allow you to freely trade. Read up on reviews to make sure that withdrawal from the site is as easy as depositing, with as many options.

Take your time to learn about Forex, and carefully evaluate all the options on the market before diving in.