FOREX SCAMS

Unfortunately there are some people on the Internet (as wel as in real life) that wil give their best to take advantage of
others. Forex market is very lucrative and tempting opportunity for anyone and therefore most scam artists wil use it to
lure people into their schemes and steal money from them. That is why I decided to dedicate this entire chapter to forex
scams.
Why is it easy to get scammed on the Internet?

1. Because everyone and I mean EVERYONE can purchase a domain name and set up a website for less than $100.
Even if they decide to hire someone to create professional website design for them, they stil can get it done for no
more than $200 - $300.

2. Most people don’t know much about forex market which makes them easy targets for potential scammers as it is
very easy to promise dreams and manipulate the numbers and information presented on websites.

3. It is also very easy to hide from public and, once you are scammed, geting your money back can be very dificult or
imposible.

The most common schemes relating to forex market are various investment programs, also known as High Yield
Investment Programs or HYIPs. The owners of these programs often present themselves as financial experts that can
bring unrealistic income through investing in forex, stocks, sports beting, etc. and ofer potential investors a chance to
profit on their “expertise”.

People who visit their websites see great opportunity for quick cash and decide to invest money hoping to make a
profit. Unrealistic returns they ofer are sometimes 200% - 400% within days! But there is a catch. Every investor must
wait a certain period of time before he can withdraw money. For example, if the program says the return is 200%
within 5 days, it means that if you invest $100, you have to wait 5 days before they “earn” you $200. During that time
your investment is locked which means that you can’t withdraw even single cent. Of course this time is necessary for
owners to “trade with invested money” and “generate profit” to investors.

What is realy happening nobody knows for sure, but here is most likely scenario:

You invest certain amount of money and have to wait for 5 days before you can withdraw any money. During that
time, scammers promote their program to find more potential investors. Scammers also ofer you and others
commissions for every new investor you bring to their program which makes promotion of their website easy.

Each and every one of new investors decides to invest certain amount of money and each and every one of them has to
wait 5 days to withdraw any money. After first 5 days scammers usualy colect enough money to pay you your profit
and to pay their first investors. You and other first investors are happy for your profit and decide to tel everyone you
know about this program.

The number of investors grows exponentialy and the money scammer is receiving grows also. At one point of time,
scammer has enough money to retire young and cannot aford anymore to pay investors their profits and usualy HYIP
colapses.

In this scenario only first investors made profit, while many more that joined this program later lost their money.

There are also scenarios where no one gets paid and scammer just colects money, makes empty promises and
disappear with his program. Also many scammers return later with new looking program, under diferent name and scam people again.

Some of them even ofer realistic income and use that to atract more investors. But one thing you never know about
these programs is WHEN it wil stop making payments or WHEN it is going to disappear.

You may probably wonder if there are any honest investing programs that realy trade with forex or stocks and make
profit to their investors. There are, but probably les than 1% of al HYIPs and these programs are usualy private and
rarely accept new investors. Also their returns are low.

If you wonder whether you should invest in HYIPs or not, know this that it is nothing more than a gamble with a lot
more chances of losing money and NEVER geting it back!

Besides High Yield Investing Programs there are also other programs, that may seem legitimate, but with only one goal
– to take your money.

These programs involve various companies and shady brokers who ofer foreign curency futures and option contracts,
unregistered firms no one even heard about that ofer unrealistic return or absolutely no risk involved. Be also very
careful of any “opportunity” that guarantees success as there is no such thing.

Source: forex-trading-secrets.net