I need to get this off my chest before I explode!
When it comes to Forex trading, there’s simply too much misinformation swirling out there, and this has given legitimate currency trading a very bad rep.
The primal cause?
Perhaps you or someone you know has fallen for one.
And it’s not your fault.
The truth is, these scams are more ingenious than you think, and they are cleverly-disguised in every shape and form possible.
You see them plastered all over the web, usually fuelled by a highly seductive, irresistible offer designed to suck you into the world of overnight wealth, getting rich quick and automated income without having to put in a ounce of effort.
It’s all pure, unadulterated BS that that eventually manifests itself as a nightmare of continual losing trades and time wasted staring at the screen, and it disturbs me to no end when well meaning people who want to make a decent income trading Forex get their dreams dashed to bits and pieces by unscrupulous snake oil salesmen.
Which is why…
In this upcoming series of articles, I intend to empower you with the knowledge you need to spot a Forex scam and to differentiate the real deal from a thinly-veiled plot designed to separate you and your hard-earned cash.
For starters, here are a few easy ways to tell if the deck has been rigged.
Forex scammers like to lurk in the shadows and very much prefer to keep their customers and clients at arm’s length, which is why most of them do not give away their full contact info.
This is done for several obvious reasons.
1. To help them avoid any legal ramifications that might arise
2. To widen their profit margins and lower their overheads, if any.
3. And most importantly, it is because they’ll have little use for you once you have been accordingly baited, reeled-in and ripped off.
Trust me, when it comes to Forex, you want accountability and you want peace of mind.
Do your due diligence.
Check if the people you’re dealing with have an registered company, even if they claim they are a foreign company.
Are the company directors listed by name?
Remember, “out of sight, out of mind”.
|Our Forex school, JF Lennon, is the world’s first and only ISO certified Forex training institute and has been at the same address for the past 10 years at 10 Anson Road International Plaza #18-25 S(079903)|
|Inability To Back Up Claims
This is the Achilles heel of most Forex scam artists.
You’ve undoubtedly heard the saying…”Bullshit talks, money walks!”
This may sound elusively obvious, but have you ever considered this question..
“Why would any sane trader “give” away their edge to any Tom, Dick or Harry if their strategy was truly as profitable as advertised?”
You see…most people are easily sucked into high figures representing “net gain”.
A particular strategy or trading style may produce spectacular results now, but how much did it make/lose the week/month before?
Is it possible that the trader merely got “lucky” for the particular time period?
Fact: The real marker of performance when it comes to any style or strategy is consistency over time.
The true litmus test?
Politely demand to see their trading account.
– Verify the fact that their account is registered in their name/or their company’s name
– Verify the fact that the account is an actual LIVE trading account (Golden orange color code) versus a demo account (green color code)
What is their track record over a period of a year?
Can they walk the talk and produce it unwaveringly without hesitation?
Or do they conveniently elect to avoid the topic and come up with a ton of excuses?
If so, there’s the red flag right there.
If it’s too good to be true, it probably is.
Because if they can’t back up their claims, it’s money well saved!
|JF Lennon’s trading results are notarized by one of Singapore’s top law firms are documented, on file and 100% verifiable. The sheer volume of student results and testimonials is unmatched by any other Forex school in the world and is on public display for all to view at our Fanpage: https://www.facebook.com/JFLennonFX|
|Introductory Broker (IB) Commissions
“An Introducing Broker (IB) is essentially an agent which introduces customers to a Forex brokerage. In return for sending customer to a brokerage, the Introducing Broker receives a fee, when it comes to Forex this is normally a certain share of the Spread or Commission charged by the brokerage.”
Is it starting to make sense now… as to why so many Forex “gurus” and trainers are so adamant about you using THEIR broker?
Is it starting to make sense now… as to why so many Forex “gurus” and trainers are able to offer super low cost, or even free workshops to ‘train’ you as long as you use THEIR broker?
(Some will try to lure you in by offering a rather intricate source syllabus like a rolodex of 365 different candlestick patterns, giving it the appearance of legitimacy and making the entire event seem very ‘content’ rich’. Don’t get suckered in.)
Is it starting to make sense now… as to why so many Forex “gurus” and trainers are willing to give you their super duper Expert Advisor software (EA) for free as long as you use THEIR broker?
FACT: Look, there’s nothing wrong with having a “preferred broker”. However, these scumbags do NOT have a vested interest in how you trade. They just want you to trade for trade’s sake so they can line their own pockets with cash because they profit regardless of whether you win, lose or break even with your trades!
|JF Lennon is not an Introductory Broker. We are a pure provider of Forex education|
Caveat emptor. (Buyer Beware)
The next time you get involved in anything that you suspect is a scam, be sure to do your due diligence and demand proof.
At the end of the day, the seductive allure of quick and easy cash will always be there, which is why the most important crucial thing anyone can do, is to understand what it truly takes to become successful at currency trading.
Till part 2…
Dato Jimmy Wong
P.S. Remember, when it comes to successful Forex trading, you only need one real system that cuts right through all the noise and clutter out there, and works CONSISTENTLY and reliably without smoke and mirrors…