Forex Scams Are Out of Control

J

JaneE

Cracking Down on Forex Scams

I find this pretty frightening. Is there no recourse against these scam artists? They can just promise you millions from the foreign currency market, take your cash and then you're screwed? That doesn't seem right.

Why the hell are forex scams suddenly so lucrative? Are average investors really stupid enough to think they can beat the currency markets?
 
A very ET answer.

And I especially like the way that the warning is followed by an advert from those "who can predict trends with nearly 80% accuracy" (I have heard it said that 50% is quite near to 80%).
 
I didn't see the advert, so I have no idea what you're talking about. However, none of that explains why forex scams are suddenly all the rage?

Is CNBC suddenly covering forex or something? Where the heck do average investors even hear about this stuff, let alone fall prey to scammers?
 
Quote from JaneE:

Are average investors really stupid enough to think they can beat the currency markets?
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Yes, 90% of the traders think they are in the top 10% of the world.
In reality only 10% can be in the top 10% i would think.
But i'm not that good in math, so check it out yourself.
 
Quote from JaneE:

I didn't see the advert, so I have no idea what you're talking about. However, none of that explains why forex scams are suddenly all the rage?

Is CNBC suddenly covering forex or something? Where the heck do average investors even hear about this stuff, let alone fall prey to scammers?
More...

Forex definitely has been a hot topic if you look at any trading magazines or publications in the last few years. And Forex markets are probably the best markets for con artists, given that they have considerably less regulation than many other markets.
 
Quote from JaneE:

Cracking Down on Forex Scams

I find this pretty frightening. Is there no recourse against these scam artists? They can just promise you millions from the foreign currency market, take your cash and then you're screwed? That doesn't seem right.

Why the hell are forex scams suddenly so lucrative? Are average investors really stupid enough to think they can beat the currency markets?
More...

I did a TV show interview a couple years back, and they wanted to me address the Forex market. I simply googled "Forex, Fraud" and found what I already knew (to some extent), that there has been a wave of FX rising up with minor hysteria, people getting scammed, and firms finally getting shut down by regulators (mainly AG's and law enforcement since these firms aren't (really) regulated for the most part).

We are on the downside of the wave again, and hopefully the bad firms will go away, one way or the other.

We had a couple of FX firm owners come to our office telling us how much money we (Bright Trading) could make by having FX trading. My brother asked the simple question "That's all well and good, but how do the traders make any money?" Both firm "executives" were shocked that we would ask such a question.

FWIW,

Don
 
Lack of regulation. Even though the SEC, NFA, & CFTC are generally worthless, they usually provide enough intimidation to run the scam artist in to the forex markets!
 
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