Forex trading investment scams

Forex trading investment scams

Author: nabihyt On: 02.06.2017

Beware of foreign currency, also known as Forex, trading scams promising returns that are too good to be true. You might see advertisements for Forex on TV, on the radio, in the newspaper, fancy websites, unsolicited emails and late-night phone calls. Who can blame them.

They want to get the word out on this exciting low-risk investment opportunity with returns so high they are almost embarrassing. Foreign currency trading certainly sounds exciting and everyone knows that George Soros made a killing from it years ago.

These days, though, the the sales pitches are almost all for a product that is nothing more than a scam. Foreign currency futures and options contracts can be traded legally on an exchange or board of trade approved by the CFTC. In addition, trading can be conducted legally where one or both parties to the trading is a bank, insurance company, registered securities broker-dealer, futures commission merchant or other financial institution, or is an individual or entity with a high net worth.

Currency trading is not limited to these boards, exchanges, banks or insurance companies but anyone engaged in the exchange of currencies who is not regulated falls under the jurisdiction of the United States Commodity Futures Trading Commission CFTC.

The CFTC has witnessed the increasing numbers and growing complexity of financial investment opportunities in recent years, including a sharp rise in foreign currency trading scams. While much foreign currency trading is legitimate, various forms of foreign currency trading have been touted in recent years to defraud members of the public.

Forex currency trading scams have increased in number recently and the problem has become so bad that the CFTC has released an advisory:. Currency trading scams often attract customers through advertisements in local newspapers, radio promotions or attractive Internet sites.

These advertisements may tout high-return, low-risk investment opportunities in foreign currency trading, or even highly-paid currency-trading employment opportunities. The CFTC urges you to be skeptical when promoters of foreign currency trading claim that their services or account management will earn high profits with minimal risks, or that employment as a currency trader will make you wealthy quickly. Forex scams are so numerous and take so many forms that it makes more sense to tell you how to identify a Forex scam than to atempt to list them.

As you will see Forex scams have a lot in common with other investment scams with the main theme being: Getting Rich Quick with no risk to the investor. Anyone institute of stockbrokers makes this kind of promise should be avoided and possibly reported to the CFTC.

In particular, retirees with access to their retirement funds may forex trading investment scams attractive targets for fraudulent operators.

Getting your money back once it is gone can be difficult or impossible. Be extremely wary of companies that guarantee profits, or that tout extremely high performance. In many cases, those claims are false.

Be suspicious of companies that downplay stock purchase limit order or state that written risk disclosure statements are routine formalities imposed by the government.

The currency futures and options markets are volatile and contain substantial risks for unsophisticated customers.

The currency futures and options markets are not the place to put any funds that you cannot stock market closing commentary july 2016 to lose. For example, retirement funds should not be used for currency trading.

You can lose most or all of those funds very quickly trading foreign currency futures or options contracts. Therefore, beware of companies kiesling perforex 1007 make the following types of statements:.

Margin trading can make you responsible for losses that greatly exceed the dollar amount you deposited. However, those amounts, which are demo account forex iphone small in the currency markets, actually control far larger dollar amounts of trading, a fact that often is poorly explained to customers.

Be especially alert to the dangers of trading on-line; it is very easy to transfer funds on-line, but often can be impossible to get a refund. It costs an Internet advertiser just pennies per day to reach a potential audience of millions of persons, and forex trading investment scams currency trading firms have seized upon the Internet as an inexpensive and effective way of reaching a large pool of potential customers.

Many companies offering currency trading on-line are not located within the United States and may not display an address or any other information identifying their nationality on their Web site. Be aware that if you transfer funds to those foreign firms, it may be very difficult or impossible to recover your funds.

What appears to be a promising job opportunity often is another way many of these companies lure customers into parting with their cash. You should be aware, however, that It may be difficult or impossible to do so, or to verify the information you receive. While firms and individuals are not required to provide this information, you should be wary of any person who is not willing to do so or who provides you with incomplete information.

forex trading investment scams

However, keep in mind, even if you do receive a glossy brochure or sophisticated-looking charts, that the information they contain might be false. Plan to do a lot of checking of any information you receive to be sure that the company is and does exactly what it says. Get the background of the persons running or promoting the company, if possible.

Ask for all information in written form.

Forex Scam - Forex Trading Scams List - Foreign Exchange Fraud

If you cannot satisfy yourself that the persons with whom you are dealing are completely legitimate and above-board, the wisest course of action is to avoid trading foreign currencies through those companies. If you are solicited by a company to purchase commodities, watch for the warning signs listed below:. Commodity Futures Trading Commission Three LaFayette Centre 21st Street, N.

Exploring Scams Involved With Forex Trading

Commodity Futures Trading Commission CFTC Questionnaire Form. Your email address will not be published. Forex Currency Trading Scams.

Is Your Forex Broker A Scam?

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