FOREX Day Trading - CFTC Comments Read more

The United States commodities Futures Trading Commission (CFTC), the federal agency that regulates commodities 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. (FOREX Trading)".

Recommended Books about FOREX

Trading the FOREX market successfully is by no means a simple matter. It requires time, FOREX market knowledge and a large amount of self restraint.

The commodities Futures Trading Commission cautions investors to be wary of websites that purport to offer high yield investment opportunities in forex transactions, because this is a common area of internet fraud. The CFTC has posted several fictitious websites that are representative of typical websites that have been the subject of CFTC enforcement actions. CFTC's examples of fraudulent websites include:

Global Financial Capital Management, Colfax Trading International, TradeForex4You, White, Truman and Fischer, Excalibier Precious Metals, and commodities Profits.com. More info on currency trading

Foreign currency futures contracts may be legitimately traded either on a recognized futures exchange or in the "interbank market," which generally involves trading between large institutions such as banks and corporations. The interbank market does not typically include individual or retail customers. Fraudulent currency trading firms often tell customers that their trading is done in the "interbank market."

Be wary of any firm that claims that you can or should trade in the "interbank market" or that it can or will do so on your behalf. Your losses can be very large in a single day. Companies that tell you otherwise may well be engaged in illegal schemes.

For more information about the CFTC or foreign currency transactions, please visit the visit the CFTC's website.