Forex is a trading field that is incredibly accessible, as you may know. The only thing necessary is an online account and some money. It does not even have to be that large a sum. However, this also means that the field is filled with amateurs who are not aware of how things are done. As a result, many aware scammers have setup up traps for these traders. One of their main methods is making themselves out to be investment funds.
The trap of investment funds
Investment funds, as you may know, promise a service where they will take care of all trading for you. You would deposit all the necessary funds and they then deal with it. A fake investment fund would now have all your investment money. If you are a beginner, this may seem like a great option for you, so falling into this trap is very easy. This is especially true if you are quite busy, and just want to make some money on the side. There is also very little interaction with online investment funds, which means they can easily get away with it.
Spotting these funds
There are a number of ways you can spot these false funds and protect your capital, thankfully.
First off, look at their credentials. Do not just look at their name and consider them legit. These places want to make could superficial impressions. See if they are registered with the necessary institutions where you live. For example, this could be the Security and Exchange Commission.
Feel skeptical of showy language. Keep a close eye on how they talk about their service. If they are offering you the moon, or promise that their professionals are the very very best, it could be wise to doubt.
Finally, try to find statistical information on their success. If they have nothing to hide, they should have no worries about showing you their financial information.
