So I googled "forex is a scam" and "forex is a fraud" and came across a lot of interesting articles.
This trader was up 500% with an FXCM demo account. He then opened a live account and then lossed around $20,000. You can read the court document here, he sued FXCM sighting much wider than expected spreads...
http://www.cftc.gov/stellent/groups/public/@lrdispositions/documents/legalpleading/iddickten2309.pdf
read forex broker reviews here, real life situations:
http://www.forexrealm.com/brokers-reviews
Here are some ways you can be scammed or defraud of your money.
- Immoral Stop Running/Hunting
You are told by Forex brokers that there is little or no stop running. This is one of their biggest and boldest fabrications. The truth is there is far more stop running in Forex than in futures, and possibly as much stop running as in the stock market.
- Wipe you out by "false" spike
Sometimes, theres very quick spike in candlestick on a brokers chart, but there is nothing happening on the others chart. A stop-loss is triggered simply due to that suspicious spike.
- Ban you if you can win their money
Probably you have heard that if you are winning regularly in Forex, you may be barred from trading. Is this true? Yes it is.
- Leaning
Brokers say they are charging you a 3 pip spread to trade the popular currency pairs. But in reality a broker may be making as much or more than 10 pips on your trades. He does this by skewing prices. Since you are not trading at an exchange, the broker can feed you any price he wants to feed you.
- Skewing price quotation
Forex brokers commonly lean the prices. A Forex broker can only give you the price of a currency as quoted to him by the bank through which he trades. Banks have differing prices for a currency. You never know what the real price is because there is no central exchange through which all prices flow.
This trader was up 500% with an FXCM demo account. He then opened a live account and then lossed around $20,000. You can read the court document here, he sued FXCM sighting much wider than expected spreads...
http://www.cftc.gov/stellent/groups/public/@lrdispositions/documents/legalpleading/iddickten2309.pdf
read forex broker reviews here, real life situations:
http://www.forexrealm.com/brokers-reviews
Here are some ways you can be scammed or defraud of your money.
- Immoral Stop Running/Hunting
You are told by Forex brokers that there is little or no stop running. This is one of their biggest and boldest fabrications. The truth is there is far more stop running in Forex than in futures, and possibly as much stop running as in the stock market.
- Wipe you out by "false" spike
Sometimes, theres very quick spike in candlestick on a brokers chart, but there is nothing happening on the others chart. A stop-loss is triggered simply due to that suspicious spike.
- Ban you if you can win their money
Probably you have heard that if you are winning regularly in Forex, you may be barred from trading. Is this true? Yes it is.
- Leaning
Brokers say they are charging you a 3 pip spread to trade the popular currency pairs. But in reality a broker may be making as much or more than 10 pips on your trades. He does this by skewing prices. Since you are not trading at an exchange, the broker can feed you any price he wants to feed you.
- Skewing price quotation
Forex brokers commonly lean the prices. A Forex broker can only give you the price of a currency as quoted to him by the bank through which he trades. Banks have differing prices for a currency. You never know what the real price is because there is no central exchange through which all prices flow.
