Hi Im new to registering domains. I been using a free redirect and its time for me to get my own domain but all the good ones are taken! I think I will buy one from here if the price is right. My question is how safe is it to buy a domain that is already owned? Are there any fraud risks involved?

Of course there are risks depending on your seller.

there is some good services to use like www.escrow.com www.esqwire.com and others for selling domains and so including some trust parties.

also services like sedo.com / afternic.com are trustable but seller pays a % i believe

Personally opinion, I would recommend escrow.com or sedo.us
(Although sedo fees are rather high)

As for AfterNIC or GreatDomains. They are well-established company But had heard lots of bad remarks about them.
Holding on to the money even though the domains are transfered to the buyer... etc.

I would browse around the different domain forums, post a wanted ad and check those who respond. All of the good name forums crack down tightly on fraudlent sellers so if they're still around and they have a resonable number of posts/sells you should be fine. You should be able to get a name much cheaper this way.

all the good ones are taken!

That may seem true but if you take some time and brain storm you can always find a decent name. It took me three months to come up with a name that I liked that a) had the .com/.net b) had no TM issues and c) fit my business.

My question is how safe is it to buy a domain that is already owned?

Domain names get bought, sold, and traded more than you think. I bought a domain once and withing two weeks I saw it trade hands three times.

Are there any fraud risks involved?

I recomend that you get yourself an eNom account and buy a cheap domain ($2 or so) just that you can see how easy a purchase/push can be. Yes, the pucker factor gets higher the more money you spend.

Good Luck and Welcome to the game!