As in most online opportunities, there are always a multitude of scammers ready to make a quick buck. If you are a newcomer to the foreign exchange Melbourne world, you should be aware of the scams that abound on the internet. There are several forex scams, but three of these seem to be the most prevalent. They are extremely well planned and set up and unless you keep a wary eye open, you may well step right into them. You need to be on the lookout all the time and be wary of everyone.
The Foreign Exchange Melbourne High Yield
Many of the individuals who look for ways to make money online will encounter high yield investment programmes or HYIP as it is also known. It is possible to find high yield investments, but the majority of the ones on the internet are scams. These programmes make investors believe that their money is invested in high yield stocks, bonds and foreign currency. The programme owners offer investors extremely high rates of return credited to your account on a daily basis. All that happens with these schemes is that the programme manager takes from the newest investor to pay the oldest investor. To maintain this system, you are normally pushed to re-invest your ‘earnings’ as they simply do not have the funds to pay everyone that type of interest. These schemes cannot survive as your money has not really been used for investment purposes.
The Software That You Use
This scam involves the sale of software that when used can bring you unbelievable returns in the foreign exchange Melbourne market. Trading in currencies requires knowledge and persistence and there is no software programme that can make all the necessary decisions for you, particularly when the market becomes volatile. The ones who get scammed in this case are often beginners who do not have the time or the inclination to undergo forex training and believe that the programme can replace them. They are more than willing to fork out the exorbitant fees that are charged for these software programmes as they are promised that they will earn that amount back in no time at all.
The Use of Forex Signals
Forex signal providers send out alerts when it is the most opportune time for you to make a specific trade. This offers beginner traders an excellent way to become used to the market. There are so many signal providers on the market that it was bound to turn into a dubious area of forex trading. Most traders are willing to pay for this service as there are good signal providers out there who are genuine. However, because traders are prepared to pay for the service, the scammers have not entered the market to make money off the traders. The scam methodology is to charge a one-time fee for the service, but you will never really receive any notifications. Once they have the payment and if you question the lack of notifications, they will come up with a multitude of excuses and before long they will disappear from the scene. Another scam is that you will pay a monthly fee, but will not be able to make contact at all. All you will receive are automated messages.