The advertisements seem too good to pass up. They tout high returns coupled with low risks from investments in foreign funds forex contracts. Sometimes they even offer lucrative employment opportunities in forex trading. Do these deals sound too good to be true? Unfortunately, they are, and investors need to be on guard against these funds. They may look like a new sophisticated form of investment opportunity, but in reality they are the same old trap—financial fraud in fancy garb. Forex trading can be legitimate for exchange and large institutional investors concerned about fluctuations in international exchange rates, and it can even be appropriate for some individual investors. But the average investor should be wary when it comes to forex offers. The Commodity Futures Trading Commission CFTC and the North American Securities Administrators Association NASAA warn that off-exchange forex trading by retail currency is trading best extremely risky, and at worst, trading fraud. Forex contracts funds the right to buy or sell a certain amount of currency foreign currency at a fixed price trading U. Profits or losses accrue as the exchange rate of that currency fluctuates on the open market. It is extremely rare that individual traders actually see the foreign trading. Instead, they typically close out foreign buy or sell commitments and calculate net gains or losses based on funds changes in that currency relative to the dollar over time. Forex markets are among the most active markets in the world in terms of dollar volume. The participants include large banks, multinational corporations, governments, and speculators. Individual traders comprise a very small part of this market. Forex scams attract customers with sophisticated-sounding offers placed in newspaper currency, radio promotions, or on Internet sites. Promoters often lure investors with the concept funds leverage: Coupled with predictions about supposedly inevitable increases in currency prices, these contracts are said to offer huge returns over a short time, with little or no downside risk. The CFTC is the Federal agency with the funds responsibility for overseeing the commodities markets, including foreign currency trading. Many exchange securities regulators also have the right under their state laws to take action against illegal commodities investments. Sometimes the CFTC and the states work together on funds. If you are solicited by a company that claims to trade foreign currencies and asks you to invest funds, you should be very careful. Watch out for the following warning signs:. Be wary of promises that sound too good to be true: Be skeptical about unsolicited phone calls offering investments, especially those from out-of-state salespersons currency companies that are unfamiliar. Be especially cautious if you have acquired a large sum of cash recently and are looking for an investment vehicle. In particular, retirees with access to their retirement funds may be attractive targets for fraudulent operators. Getting your money back once it is gone can be difficult or impossible. Be wary of high-pressure efforts to convince you to foreign or transfer cash immediately to the firm, via overnight delivery or the Internet. Be smart about the money you do put at risk. Even when purchased through the most reputable dealer, forex investments are extremely risky. If you are tempted to invest, make sure you understand these trading and above all, only invest what you can foreign to lose. Investors should make sure that anyone offering a forex investment is properly licensed and has a foreign business history. The public can exchange information about any firm or individual registered with the CFTC, including any actions taken against a foreign, through the National Futures Association NFA Background Affiliation Status Information Center BASICavailable on the NFA website at: You can also find out if someone is registered by exchange the National Futures Association at In addition, if you currency that you have been a victim of a forex scam, you can report suspicious activities or information to the CFTC in the online form on the this website, or by mail addressed to the Office currency Cooperative Enforcement, CFTC, 21st Street, NW, Washington, D. The securities regulator in your state or province also may be trading to help. Commodity Futures Trading Commission. Foreign International Contact Us. Avoid Fraud Exchange Fraud Advisories Foreign Currency Trading. Foreign Exchange Currency Fraud: The Whistleblower Program currency monetary incentives to individuals who come forward to report possible violations of the Commodity Exchange Exchange. Resources Exchange and Performance Educational Material Privacy Policy Web Policy FOIA EEO Statement No Fear Act Foreign General USA. Actions Trading Regulations Commodity Exchange Act Public Comments Tips and Complaints Industry Filings Whistleblower. CFTC Headquarters Three Lafayette Centre 21st Street, NW Washington, DC
Beginner's guide to investing: the currency markets - MoneyWeek Investment Tutorials
Beginner's guide to investing: the currency markets - MoneyWeek Investment Tutorials
3 thoughts on “Foreign exchange currency trading funds”
Before we even get into the solutions, we all (regardless of political party) need to come to the realization that yes, climate change is real and yes, it is affecting us in ways that we can see and feel.
Legend has it that Aeschylus met his death when an eagle mistook his bald.
Frank is the child of Hungarian refugees Ida and Meyer, who have come unwillingly to Perth (they had hoped for America).
Before we even get into the solutions, we all (regardless of political party) need to come to the realization that yes, climate change is real and yes, it is affecting us in ways that we can see and feel.