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How Scammers Cheat Investors on Forex Account Management Service
By plrprousers | May 17, 2009
Today, despite all economic troubles and recessions, many investors keep putting their money into managed Forex trading service.
The advantages are obvious, because you do not need to become a professional Forex trader and spend your personal time on following all world news and currency indicators. You will not need losing your nerves and burst out with adrenalin every time and currency rate suddenly goes up or down.
Instead, professional traders are trading for you and – hopefully – making money.
Unfortunately this huge demand for the Forex managed accounts service can quite often be used by the people who are ready to cheat naive investors who do not know the nuances of the Forex market.
We would like to reveal one of the most typical tricks used by scammers on the market of Forex money management service.
With a reputable managed Forex trading service an investor is offered to open a trading account DIRECTLY with Forex broker. This nuance is very important, because reputable Forex brands enjoy global fame and recognition and are the top trusted companies on the currency market. The investor opens an account with Forex broker (not with Forex managed account service), and the investor is the ONLY OWNER of this account.
No one, but this investor, can withdraw the money from this trading account. The traders are simply given a possibility to trade the money on this account under LPOA (Limited Power of Attorney) issued by the investor. And the trader cannot withdraw the money.
Thus, your money is in the hands of investor, safely backed up by the reputable Forex brands.
Scammers do the following…
They offer investors to open an account with THEM. Not with Forex broker, but with some company (usually a fake company opened by the scammers and this company will burst like a bubble shortly). They will invent thousands of reasons for sending the money to this company, instead of opening trading account with Forex broker directly.
Once the money on this account – the company disappears.
Do not let scammers cheat you. Open your account only with the reputable Forex brokers. Be smart about your Forex investment choices.
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