In the forex (foreign exchange) trading world forex signals are suggestions to make an order on a particular currency pair. Automated forex robots are often used to analyze the currency movements and make these suggestions. Electronic media such as emails, tweets, SMS, RSS and websites are used to convey the forex signals to customers. Speed is usually critical to the value of these transactions.
Any person considering subscribing to a forex signal service, or undertaking any form of currency trading should be aware of the risk of losses. Financial losses can occur in any financial transaction, but the potential high gains in forex trading have led to unscrupulous selling to investors who are not aware of all the risks.
Commodity futures and options markets in the US are federally regulated by the CFTC (Commodity Future Trading Commission). Advice from CFTC warns potential investors of the risks in forex trading, and the special care needed to understand risk and avoid fraud.
In a legitimate and economically important market a number of forms of trading are touted which endanger the public. You should be skeptical if firms or individuals claim that high gains can be made with low risks. High profits undoubtedly can be made, but they usually entail high risks.
Promoters may claim that trading on margin can lead to high profits with low investment. The downside is that the investor may be liable for losses many times in excess of their investment. CFTC's excellent advice is this: do not trade on margin unless you are 100% sure what it means.
People with retirement nest-eggs are a particular target of unscrupulous or fraudulent promoters. Do not invest money you cannot afford to lose. If you lose your money to fraud you will find it impossible to get it back.
Use extreme caution if transferring any funds on the internet. Companies often operate off-shore, outside CFTC jurisdiction. Websites may not display any indication of nationality. Do not invest if you have any doubts.
You should be sure to get the company's performance track records. A responsible firm will be happy to give information about past performance. Be cautious of firms and individuals who do not have this information, or who just give verbal assurances.
You can quite easily get into contact with a network of real forex traders. You should look for unbiased reviews of forex services, and join on-line forums.
The CFTC have a fraud page on their website. Check this out. Also check if the company or individual is registered with the CFTC or the National Futures Association.
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