How to Spot Legitimate Forex Opportunities
Posted by Phoebe Millano
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 frauds involving Forex.
Sometimes the chance to earn a large sum of money brings out the worst in people. And this is very true when it comes to Forex. You must learn how to spot a scam before you get taken for a ride.
The CFTC has witnessed the increasing numbers and growing complexity of financial investment opportunities in recent years, including a sharp rise in Forex scams. While most foreign currency trading is legitimate, various forms of foreign currency trading have been found to defraud members of the public.
The CFTC urges you to be skeptical when promoters of Forex services 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.
Recognizing Legitimate Forex Operations
Generally speaking, Forex may be traded legally on an exchange or board of trade that has been approved by the CFTC.
Even where currency trading does not occur on a Commission-approved exchange or board of trade, the trading can be conducted legally where one or both parties to the trading is (or is a regulated affiliate of):