A detailed account of how one can spot forex frauds and how to deal with it?

Like any other business, there are frauds conducted in the Forex trade also. Because this trade is based on an understanding between a broker and one who is masquerading as a broker and unwary investor gaining the grounds of chances of a fraud are taking place high. Secondly, as it is on the internet the chances of fraud are multiplied. There are certain rules that have been posted by the CFTC (Commodity Foreign Trading Commission) of America to educate investors and potential investors against fraud. It is really up to the individual to spot a fraud and to avoid it. One basic rule is that ‘anything that sounds too good to be true’ probably is reasonable. Secondly no company or broker can guarantee profits and those who do are lying as not even the largest organization can guarantee profits as there is always a financial risk that is involved and no one can guarantee any financial gains. One should never conduct any financial transactions on the internet. One should always run an independent check on a company’s background and should never get into any deal with an individual who claims to be working with an organization. It is not difficult to copy logos and seals to try and make a web site look authentic also giving a toll free number is no assurance that the company is legitimate. As the reach of forex trading has been extended due to the internet so has the reach of frauds and the threat of frauds has also extended. If one has got into the business of forex trading then one must make doubly sure about the person or persons that one is dealing with. The name of the organization and the street address should be verified before committing any financial transaction also if one is required to make out a check it should be on the name of a legitimate company and not to a personal account. Take the help of an advisor involved in AML jobs to verify that the company that one is going to business with is above board and legitimate. Money can disappear into an account and then move out of the country to an unnamed account. The numbers of Forex trading frauds that are being committed are on the rise and one should take all necessary precautions to safeguard oneself. As foreign trading is a cross global business it could be very difficult to spot such a scam. Some frauds are extremely tactful and will give unexpected profits and entice the investor to put in more and more money. Till one day they will just disappear and one will not be able to track them down. One can reduce or avoid getting caught in the traps that are laid out by getting in touch with officers involved in AML compliance jobs they will not only help you secure lines and ensure that all transactions are properly documented and have a proper paper trial. One should never deal with anyone who one has not checked out and verified. It is better to make less then to lose all and as there are no worldwide regulations regarding Forex trading and each country tries to protect people from getting ensnared in the trap of the scams but there is no protection that can be provided by any government that can eliminate this type of fraud from occurring. So one should try to protect them and only deal through people that they know.