Have you
been solicited to trade foreign currency contracts (also known as
"FOREX")?
If so, you need to know how to spot foreign currency trading frauds.
The
United States Commodity Futures Trading Commission (CFTC), the
federal agency that regulates commodity futures and options markets
in the United States, warns consumers to take special care to
protect themselves from the various kinds of frauds being
perpetrated in today's financial markets, including those involving
so-called "foreign currency trading."
A new federal law, the Commodity Futures Modernization Act of 2000,
makes clear that the
CFTC has the jurisdiction and authority to
investigate and take legal action to close down a wide assortment of
unregulated firms offering or selling foreign currency futures and
options contracts to the general public. In addition, the
CFTC has
jurisdiction to investigate and prosecute foreign currency fraud
occurring in its registered firms and their affiliates.
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.
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.
