There are many different ways to make money on the Forex market, and this guide is intended to help you avoid the most common of these scams. The first way to avoid being scammed is to simply be cautious and not provide any personal information to any strangers. If you have doubts, you can look at forums online, or even check the registration of investment managers and companies with the stock market regulator in your country. Learning the trade yourself is the best way to prevent being scammed, but it takes some time. Don’t ever invest your hard-earned money in a service that sounds too good to be true.
Another common scam involves a forex mutual fund, or PAMM. PAMM is an acronym for Percent Allocation Management Module, which was a form of computer manipulation based on risk-balanced investments. The name is derived from the fact that the spread is different between currencies. In this case, the spreads are so wide that it’s nearly impossible to make any profit from a trade. Although the point spread varies from broker to broker, this is no reason to avoid these funds.
One of the most common scams involves shares in a worthless company. You may be asked to purchase shares of this private company in exchange for a percentage of its share price, but that’s not always the case. The shares can become worthless overnight if the company goes public. You’ll need to act fast because the fake company may have a fake office, phone number, or website. Eventually, they’ll disappear and you’ll lose your money.