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9 Warning Signs for Foreign Exchange Trading FraudThe CTFC list 9 warning signs for foreign exchange trading fraud: 1. Stay away from oppurtunities that seem to good to be true. Always remember that there are no free lunches. Don't ever expect something for nothing. Be very careful if you have obtain a large sum of money and looking for a safe place to put it. Retirees with access to their retirement accounts are potential targets. Always remember that once your money is gone, you will not get it back. It doesn't matter if they catch the person that took it. You still won't get your money back. 2. Avoid any companies that guarantees large profits. No one can guarantee you will make money. If you can't lose any money, then you don't have any risk; and without risk you won't have any investment. That what investment is about. Assuming risk and being compensated for taking that risk. Be on the lookout for these types of statements: "Whether the market moves up or down, you will make money in the currency market." "Make $2,000 a week, every week." "We are outperforming 90% of domestic investments." "The main advantage of the forex market is there is no bear market." "We guarantee you will make 30% to 40% in 90 days." 3. Run away from companies that promise little or no financial risk. The currency markets are very risky. Professional currency traders go broke all of the time. The nonprofessional really does not have a chance. The deck is stacked against them. Be wary of these kinds of statements: "With a $10,000 deposit the maximum you can lose is $250 a day." Even if this were true, you still would be broke in 40 days. "We promise to cover in losses you may incurr." "Your investment is secure and insured." 4. Don't trade on margin unless you understand what it means. Margin trading can make you resposible for losses greater than your intial deposit. You will be asked to put up small amounts of money in order to control large contracts. If the market goes against you, not only will you lose your initial deposit, it is possible for you to go bankrupt. 5. Scrutinize firms that claim to trade in the "Interbank Market." The markets are not regulated. The firm that is suppose to be trading for you; possible will trade against you. 6. Don't transfer cash over the internet, by mail or otherwise. It costs a advertiser just pennies a day to reach a potential audience of millions, and phony currency trading firms have siezed upon the internet as an inexpensive and effective way of reaching a pool of potential customers. Most of the firms advertising currency trading are not located in the United States. If you transfer any money, you will not get it back. 7. Currency scams often target members of ehinic minorities. They often advertise through ethnic newspapers and magazines. They will advertise job oppurtunities as an account executive or something like that. The account executive will be required to trade his or her own money and also recruit family and friends. What appears to be a promising job oppurtunity is really a scam. 8. Be sure to get the company's performance record. Get as much information as posssible about the company. Don't bother with the person or company that is not willing to provide all background information that you request. 9. Don't deal with anyone that will not give you information about their background. Most information should be of public record. The documents you need shoul be on file with state and or federal securities regulators. These are the 9 warning signs for foreign exchange trading fraud. Read and remember them. Always remember "caveat emptor" let the buyer beware.
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