Pharaoh from the Forex Peace Army wrote an interesting article that you may be interested in checking out. The title says it all.
Before I give any other methods, let me state the 2 absolute most important things you need to avoid getting ripped off. These are EDUCATION and RESEARCH. If you don’t understand these, then the rest of the advice I’m about to give will not be nearly as useful.
Too many people get into forex with a dream of making big money very fast. Yes, it is possible to make a lot of money very quickly trading forex, but more than 90% of all traders lose. If you don’t educate yourself about forex trading, you WILL lose money, and you will lose it quickly. Educating yourself about forex trading won’t guarantee that you make money, but it will certainly slow your loses and arm you against the legions of people selling “You can get rich quick in forex if you’ll buy my product right now before I raise the price!” type products. A few of these are worthwhile, but most are not.
One very easy way to avoid getting ripped off is to not buy anything at first. If you are new to forex, you probably haven’t even decided if you want to scalp the 1 minute charts, trade the hourlies, swing trade, or carry trade. If you don’t know what these terms mean, put your wallet away and don’t buy anyone’s “guaranteed profits” products until you at least understand the basic terminology.
To get educated, there are many places you can go. Felix is adding educational sections to the FPA forums. Also, dig through the old postings in the various folders of the FPA’s forums. So many questions have been asked and answered. If you want to follow the Daily Trading Signals, visit the Daily Trading Signals archive and look at how Sir Pips not only predicts market reactions for the coming day, but also how he discusses what happened the day before. Once you’ve read through the collected wisdom of FPA’s forums, don’t forget to check the educational material on many other websites. Many brokers have basic forex courses available for free.