3 Types of Forex Scams [Quick Warning!]
I've seen so many "make money fast with trading" scams online that I wanted to write a quick word of warning.
You may have seen all kinds of trading gurus that are basically promising you the moon from the sky. I must say that it makes me sad to see those people trying to take advantage of innocent people.
For example, one video that I watched recently claimed that you could "make $11,640 IN 10 MINUTES". That claim might be fine if there would be some tangible knowledge behind it but actually in the video he's just gambling his money (or fake money?) and he obviously doesn't even know anything about forex trading.
To be honest, I knew much more about him about trading even though I think it's not my best area of expertise. He was just a random guy who had probably started.
Most people who are doing forex trading are simply gamblers and they'll lose money in the long term. I have seen actually many kinds of scams in the forex trading industry and here 3 most typical ones.
1. FOREX MLM-SYSTEMS
There are a lot of multi-level marketing borderline scams that lure you into their programs promising to show you how to become financially free as a forex trader.
Essentially, all they're trying to do is simply to get you to sign up to their forex multi-level marketing scheme and purchase an expensive package. After you have done that, they'll push you to invite other people to the system.
Usually, those people don't make their money actually trading but inviting more people into the scheme.
Perhaps someone makes $11,640 in 10 minutes but they "forget" to tell you when they lost $15,000 in 5 minutes!
99% of those people are gamblers who don't have no clue about trading.
2. FOREX TRADING COURSES
There are some people who are consistently making money in the forex industry. Those are Forex Brokers! Not traders... But then there are also those people who are selling you all kinds of trading courses.
Almost in all cases, those people don't make money actually with forex trading but by selling you their courses. Usually, they have huge promises such as "Make guaranteed 10% profits every single week!" "Earn 100% profits within your first month!" or something similar.
If they would be making such profits, soon they'd be the richest persons on Earth and they wouldn't be selling you those courses.
But in reality, they are not making anything close what they promise to you and all they're trying to do is to get your money when you purchase their courses.
3. SLEAZY AFFILIATES
Then there are those affiliates who are promising you tons of money easily if you sign up to a forex broker through their affiliate links. Those people are showing you "get-rich-quick-by-clicking-buttons" systems and encouraging you to sign up immediately.
Again, if they would really be making the profits they promise, they wouldn't be making those videos. All they're trying to do is to get you to sign up and start trading through their affiliate links because forex trading sites pay them handsome commissions.
If you follow what they say, there will be 3 parties in that deal:
1. Broker - They make money off trading fees that you pay them
2. Affiliate who promotes the broker - They make money when you sign up through their link.
3. YOU - You lose money in fees and by trying to time the market and beat the bots.
--
Instead of gambling in the trading market, I think it's wiser to invest money for long term investments. Investing in your own education and business(es) have the biggest potential returns.
Long-term investing > short term trading (=gambling)
All the best!
- Roope "Quick forex warning" Kiuttu
PS. I'd love to hear your thoughts.
What do you think about trading? Do you think also it's just a waste of time and money?
Have YOU (or some of your friends) made consistent long-term profits with trading?
Recent Comments
49
Hey Roope,
Anyone who tell you that trading in any market is a get rich quick opportunity is certainly lying.
At the same time, it is not impossible to make money in that market. I know people who are trading there - not brokers - and are making good money.
I have recently begun trading there - not on my own - and I too am making money.
Yes, there are those who offer impossible rewards, these we should all know to stay away from, but don't write off all opportunities as a scam.
If you want more information on how I am making money on the foreign exchange market, PM me.
Russell
Thank you for posting, I am so torn as I personally want to focus on WA and that is my plan however my husband has a contact who makes good money with forex and he plans to dive into it in the next few weeks. I don’t know who or what to believe but I do trust this friend who’s been in it awhile. Would love to learn more about your experience!
Hi Kari,
You can still do you blogging while your husband does his trading.
That would mean, multiple streams of income. PM me for more information.
Russell
Hi, Roope, thanks for sharing. Trading in Stock Market is not a LOTTO GAME of some kind. You need B.com, M.com, D.com, Economic Science degree, Portfolio Management, Investment Analysis or other related degree and practical KNOW HOW. Day Trading, Contract for Difference, Spread Betting, these are the Jargons used by experts in the field.
People who have these credentials are registered Stock Brokers. People who have in depth knowledge about "Bear/Bull" Market, Dollar/Euro/ performance against other currencies, Brent Crude Oil/Gold, when it will Go Up or Down.
Some Stock Broking Companies have trading platform (DEMO/LIVE ACCOUNT). They allow members of public to register and conduct trade in these accounts. They also allow us as affiliates to entice people to open account and trade (affiliate program/network). That's where the "whole crap" comes into the picture, "FOREX this Forex that", "Make $5 000 a Day in Forex" "A Young Guy In California Made $5 000 000 in 3 months Doing FOREX TRADING"
You know as well as I know, affiliate marketing is a business like all other not a scam. It's labelled as a scam because of the above ridiculous claims.
Daytrading is far from a waste of time.. I do day trading but not with forex, I'm more of a stock market guy. Furthermore as you said most people will lose money in the market and aren't even traders. It's all smoke and mirrors in order to get people to fall for their scheme.
I don't know about forex much but in order to be a day trader in the stock market you need at least $25,000. I'm fairly new to trading so only time will tell but I'll say this I've made more money from the markets than I've ever did at a job in a shorter period of time, only time will tell if I can keep up the same consistency.
Great and important Post Roope! I am being bombarded everyday by Forextraders, bitcoiners, miners and cryptopeople who wants me to join their programs and invest. I guess a 100 a month at least. They are doing a very aggressive form of marketing with very short time limits. If you ask to see the information about the whole plan - they will not give it to you. I always ask (mostly for fun) . Send me the plan on how you are planning to make me rich and then I will see if I want to invest. You only get a link to a news article, video or a landingpage or asked to call them on Whatsapp. My advie - if you cant afford to loose the money - do not invest in these schemes.
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Hey @Roopekiuttu! I completely agree taking money from people with false hopes there is a special place in hell for them lol jk but no I got this envelope in the mail saying that if I send a dollar in the mail in a week I will get $1,825 bucks right back! I thought ya ok there is no way unless I hold the $1,825 for a week then mail it to the next guy lol I just don't understand people like that how could you basically rip people off as a career but still sleep at night? Kills Me!
Thank you RoopeKiuttu for finally saying it lol
Justin