Forex Scams reasons :
There is only one reason why forex scams occur because most of the online forex traders are rich enough to trade through online and hence due to the anonymous character of the internet. As forex scams are not common and frequent like other legitimate business therefore recognizing forex scam is very important for the traders. In foreign exchange market there is no proper channel of clearing trades centre as it is above the counter market. In stock market the buying and selling of stocks occur in physical market among individuals which is different from that of the foreign exchange market. In stock market if any scams arise and occur during trading the stock exchange will immediately stop on behalf of their client to receive trades from that particular broker. But in foreign exchange market the type of security that you get in stock market is not available as no market is involved in this type of trade where both the sellers and buyers can interact. There are also different cases in forex scam such as most of the forex scams are invented by the online forex broker who are unscrupulous. This type of online forex broker takes out money from the investors and nothing was given in return to the investors or even makes them impossible to trade with the actual currency.
But it happens in contrast in case if the trader is clever enough and skilled in trading and in such cases the forex traders make lots of profit while the brokers go bankrupt.
CTFC Against Forex Scams
With the change in time the trend of online forex trading is also changing. The Commodity Future Regulatory Committee has come up against the unscrupulous broker. In the United States forex brokerage firm has been set up by The National Futures Association (NFA) and the CTFC to register every new forex firms. This firm has been set up so as to provide a legitimate service by the brokers. And as a protection measure for the forex traders in 2010 the CTFC has also make limit leverage. Before 2010 the amount of leverage is unlimited. Therefore high leverage was made such as 500:1 and even higher than this. And this was the fact that if a trader losses then all the profit went to the hands of the brokers which I natural in forex scams. But this type of business is not tolerable in US.
Products provided by Forex Scammers
Besides forex brokers, scammers also sell products which make foreign exchange market a sore spot. And the products are as follows:
1. Automated trading robots or expert advisors
2. Forex signals
3. Forex account managers forex trading scams
So every forex trader should be very careful in forex trading including foreign exchange market and also with the forex scams.