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?