The Truth About Forex Scams
Written by Jack Sawyer on Thursday, April 30th, 2009 in Investment.
What makes for Forex scams? A lot of people think that any Forex trading system, informational product or service which fails to make them rich beyond their wildest dreams overnight must necessarily be a scam. These are generally the same people who flee from get-rich-quick scheme to get rich quick scheme, constantly disappointed because they fail to get rich. These people are unwilling to spend ay kind of time or effort learning how to make a product or service work for them and they just accuse them of being Forex scams. There is no such thing as a system which will make you rich overnight. Think about it for a minute ? if there was such a thing, wouldn?t we all be using it already? This system would also not continue to work so well for long ? it?s a matter of elementary economics.
The fact is that the money you make has to come from somewhere. Technology can improve our methods of producing goods so that everybody’s standard of living improves and everybody becomes richer in real terms. However, when you are trading, gambling or doing anything else that involves ‘pure money’ without any goods or services being produced, then for one person to gain, another person or institution has to lose.
There are always losses being taken by individuals and institutions who are either unaware of the currency exchange market or cannot for one reason or another allow exchange rates to dictate their activities. You wouldn?t put off a vacation because of exchange rates ? and businesses also cannot wait for favorable currency exchange rates to import or export goods. It?s just not a possibility for each and every Forex investor to get rich ? simple as that.
So when you are in an internet forum and you are trying to decide whether negative comments that you read about a product are really a sign of a scam, it is useful to picture the situation happening in the real world, i.e. offline.
Let?s say that you buy a book on Forex trading from your local bookstore. You read the book, apply what you have learned and find that it doesn?t work for you. Maybe the information here is out of date, or it simply didn?t work for you for another reason. You?d probably just chalk it up to a lesson learned and try something else. What you wouldn?t do is to angrily run down to your local bookstore and accuse the owners of operating a scam.
However, if this same bookstore was urging people to pre-order a new book which they were hyping up and you were to show up on the day of sale to find the bookstore had closed up and the owners skipped town; now that would be a scam.
A scam is a completely fraudulent business activity which is created with the intention of swindling people. A scam is by definition illegal ? if a product or service is offered in good faith, it is not a scam.
People are very suspicious of buying online and you will often see the word ‘scam’ thrown around without much justification. Usually it is just a case of a frustrated customer trying to blame the product for his inability to be successful with it, or it might be something that worked at one time but is out of date or has been over-used. You wouldn’t want to buy it except for historical interest but it wouldn’t be right to call these systems forex scams.
