Friday, June 20, 2008

Forex Scams

It seems like a new company springs up every day that has the signal service to beat all signal services. They profess to be able to sell you information on which trades you should make. These kid of signal sellers usually charge a daily or weekly or monthly fee for their service and usually do no offer anything that will help improve your trading. There is no such thing as having a magic like key to market and if there was, why would you sell it?

Phony Investment Funds
In the past few years, funds called HYIP ie High Yield Investment Program have popped up all over the place. Most of these (not all) are scams. They promise you a high level of return for temporary use of your money in their forex fund. It is a type of Ponzi scheme where the investors of yesterday get paid back by the investors of tomorrow. Once the fund runs out of prospects, they usually close down and take whatever money they had with them.