By: Michael A Jones

Copyright (c) 2009 Michael A Jones

Make money scams and the internet seem to find a perfect partnership. While the internet is a wonderful tool, it can also be a very anonymous one, where anyone can assume an identity and project themselves or their company in a convincing way and catch the unwary.

Scam – A Definition

Broad Definition: A scam is a dishonest attempt to get you to part with your money by making exaggerated claims or by failing to deliver the goods promised.

Specific Definition: Merriam-Webster’s dictionary defines a scam as “a fraudulent or deceptive act or operation”.

Some make money scams currently circulating on the internet are paid survey schemes, home typing schemes, and pay to join affiliate programs. Not all enterprises going under those categories are scams but many are and you need to be careful. So the question arises: Is Forex trading just another ‘make money scam?’

The question arises because anyone who browses the internet will see numerous adverts making all sorts of claims. Some promise huge returns on investment in a short time. Does the Forex make money? Absolutely! The question is, for whom? The daily turnover by some estimates is around $1.8 trillion. Anyone with a computer and internet connection can go online and participate in the marketplace.

Is the promise of profits from the Forex just a scam then? No, thousands are making good money. There are so many advantages! Working from home, with just a small starting investment, a steady income stream can be created. Of great importance however are realistic expectations and a practical approach. First realize you are going to have to do your homework, get a good education, and then spend months developing the mental disciplines necessary for online trading.

A Major NO! NO!

DON’T, repeat, DON’T, sign up with an online broker and sink thousands of dollars into your account. You will ended up getting slaughtered, almost guaranteed. And if you are currently out of work you have even added reason to proceed very, very cautiously. Some unscrupulous companies do catch the unwary in Forex based money making scams.

If large returns are promised if you invest a large amount of money, and pressure is exerted to get you to sign on the dotted line, just listen to the alarm bells ringing. As currency trading carries a high risk, no responsible broker or advisor will make promises or give guarantees on how much money you will make. In the majority of cases, Forex novices lose, many not making it past the first 2 or 3 months.

A Realistic Approach

If you are tempted to try out Forex trading to see if it can work as an additional income stream for you, then research online and get free information on how to trade the Forex. Educational materials abound on the internet. Just put the phrase “Forex tutorials” or a similar expression into your favorite search engine and start going through the free resources available. Then open a demo account (which won’t cost you anything) at a popular broker and start getting used to the trading platform.

Once you have practiced a short while, look for an online broker that has the facility of trading micro lots in a mini account. This allows you to trade in 10 cent increments. Just $250 is needed to open an account with some online brokers. That’s the most you will have to risk.

Of course, it may seem that at 10 cents a trading unit, it will be some time before your account grows to a level where it can produce a liveable income. You will be surprised! Start slowly, learning the ropes, and then, once your account starts compounding, it can begin to grow at a surprisingly fast rate. But be patient, this is not a get-rich-quick-scheme. The learning process can take a long time.

It’s understandable if up to now you have relegated Forex trading to just another one of those make money scams. Regretfully, that is one unsavory side of the Forex online trading market. However, there are a large number of reputable brokers out there, offering excellent facilities and advice to help you get started. Don’t rush, just ease yourself in gradually.

To Sum Up

Remember, the single most important factor in avoiding a make money scam related to Forex trading, is to do your homework and keep these key factors in mind:

Be prepared for a lengthy learning curve.

Don’t commit large sums of money to your training period.

The lion’s share of your time should be devoted to mind skills, namely, developing the right psychology and self-disciplines necessary for trading successfully.

Don’t get caught in the net of make money scams. Always research thoroughly. If you do that with Forex trading, it is unlikely you will regret it. There is the possibility you will see a handsome return financially.

About the Author

For further reading on this subject, take a look at the article: “Does Forex Make Money?” Click Here: http://www.realisticforex.com/forex-trading-psychology/does-forex-make-money.html
If you want to ‘test the water’ with Forex trading, read this page. It shows how to trade the Forex for just minutes a day with a simple method that involves a minimal investment. http://www.realisticforex.com/forex-on-minutes-a-day.html

(ArticlesBase SC #884813)

Article Source: http://www.articlesbase.com/ – Make Money Scams: Is Forex Trading One of Them?

By: Christine OKelly

Passive income used to only come into play when a person had rental properties or collected royalty fees from a patent or copywrite. Lately, the term passive income has become a sort of online buzzword as people are trying to find ways to generate passive income on the Internet.

As with most business ventures that sound too good to be true, there are many scams on the Internet advertising passive income and not delivering. It is important before investing in any passive income opportunity to do your homework and make sure the opportunity is a legitimate one.

Managed Foreign Exchange Accounts, or forex accounts, can be an excellent passive income opportunity for the right investor. Here is some information to help you decide if they are right for you:

History

The Foreign Exchange is the world’s largest financial market where investors trade not stocks and bonds but currency. Over 2 trillion trades are posted on the forex market daily through interbank networks. The forex first became available as an investment tool in 1998. Prior to this only banks and other major investment firms like hedge funds had the ability to invest.

What Is A Forex Account?

A managed forex account is where a licensed trading firm makes trades for investors while collecting a percentage of the monthly profits earned. The good part about this is that if their trades do not make money, they don’t collect any money. This gives them an incentive to make smart trades and begin generating passive income for investors.

Investment Requirements

Initial investment requirements range from $5,000 to $25,000 depending on the forex trading firm chosen. An investor is in complete control of their money at all times. The account is in their name and the investments and passive income generated can be monitored daily online. Typically, the trader has special permission through a limited power of attorney to make the currency trades within the account, but nothing else.

Beware Of Scams

There are plenty of forex scams on the Internet and elsewhere, so before choosing an investment firm with which to generate passive income, it is important to know the signs of a forex scam. The U.S. Commodity Futures Trading Commission states that from 2001 to 2007, approximately 26,000 people lost $460 million in forex frauds. The CFTC has issued warning signs for forex trading scams. Here are a few important ones to consider:

1. Beware of opportunities that sound too good to be true

2. Avoid any investment firm that predicts or guarantees large profits

3. Stay away from firms that promise little to no financial risk

4. Don’t trade on margin unless you understand exactly what it means

5. Review a firm’s performance track record before investing

A managed Forex account is a good passive income opportunity for those looking to make a sizeable investment and then truly sit back as passive income is generated through investment returns. It does typically come with a sizeable risk, so only investors who truly have disposable income should consider earning passive income in this way. For these investors, however, sizeable risk often translates to sizeable gains!

About the Author

Christine O’kelly is an author for Scott Robinson Inc., a company focused on helping people make money online through various passive income opportunities.

(ArticlesBase SC #395997)

Article Source: http://www.articlesbase.com/ – Foreign Exchange Accounts: A Great Passive Income Generator