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.
If you are thinking of joining a forex signal service, or indeed trading in any way in foreign currency then you absolutely must be clear about the risk of losses. While any financial transaction could lead to loss there is something about the potential large gains in forex which make the market susceptible to unscrupulous selling to unwary investors.
In the US the CFTC federal agency (Commodity Future Trading Commission is responsible for regulation of foreign exchange markets. The CFTC has published important advice. This warns potential investors to take particular care before participating in foreign exchange trading.
Numerous forms of trading put the public at risk of fraud. The CFTC urge skepticism when schemes offer high profits with low risk. High profits can be made, but usually they are made by those willing to accept 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.
Fraudulent and unscrupulous promoters are particularly fond of targeting those with retirement nest-eggs. If you lose your money to fraud you will not easily get it back. If you have money you cannot afford to lose then do not invest.
Be particularly careful if you transfer money via the internet. Often on-line forex companies are outside US jurisdiction. Often they do not display national identity on their website. If you have any doubts about where they are do not transfer money.
Make sure you get the firm's track records. Any good firm will be happy to give information on past performance. If firms or individuals do not have this information, or if they just give verbal information then ask yourself why.
Network with other forex traders. Look for reviews of forex services, and ask questions about forex signal services in 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.
No comments:
Post a Comment