binary options trading market. This post introduces you to some information about these frauds and ways to be safe.
United States Commodity Futures Trading Commission (CFTC), the federal department that oversees commodity futures and options trading in North America, gives a warning to the general public to take special care to protect themselves from the several kinds of scams being done in the country’s stock markets, along with the so-called “foreign currency trading.” 마진거래
A new act, the Commodity Futures Modernization Act of 2000, clarifies the CFTC has the jurisdiction and authority to probe, sue, and put an end to many of illegal outfits offering or selling foreign currency futures and options for the businessmen of America. Also, the CFTC has the right to shut down foreign exchange scams in its registered organizations and their associates.
The CFTC has witnessed an increasing number and increasing complexity of investment opportunities in the last few months, including troubling increase in Foreign money trade frauds. While much of the Forex trades is done legally, various different forms of Forex trading have been recognized in the recent years to deceive the unassuming consumer.
Online trading scams often get consumers via advertisements in various newspapers, TV channels, and various websites. These ads may publicize very high-return opportunities to invest in Forex and binary options, or highly paid Forex employment opps. The CFTC wants you to be thoughtful when Forex agents tell you that their services will make enormous profits with less chance of risks.
Get Information about Good Businesses in Forex and Binary Options
Normally, Forex futures and options contracts can be legitimately traded on an exchange or board of trade that has approval from CFTC.
Binary and currency trading can be made legal, generally speaking, if one party in the trade is an insurance company, a banking institution, a securities broker-dealer, a high-net-worth person, or a futures commission merchant.
Signs of Scam
If a company solicits you that claims to trade foreign exchange and tells you to deposit money for the business, be wary. Watch for these warning signals provided below, and do the various precautions before submitting your money with any Forex trading firm.
1. Be Wary of Business Opportunities That Seem Too Good to Be Correct
Make-money set-ups, with foreign currency trading, tend to be scam.
Don’t ever forget there is no such thing like a “free lunch.” Be especially cautious if you have acquired a large sum of money recently and are looking for a secure investment vehicle. Especially, retired people having their retirement payout may be attractive targets for fraudulent operators. Having the cash back if it is lost may be difficult if not impossible.
2. Stay Away From Companies that Guarantee Huge Profits
Be very cautious of businesses that predict high returns. In many cases, these claims tend to be wrong.
The following are instances of statements that are most probably fraudulent:
“Despite the market movement, in the Forex market you will definitely create a profit.”
“Profit $1000 per day, every day.”
“We are performing better than 90% of domestic investments.”
“The major benefit of the Forex markets is that there is no downside.”
“We promise you will get at least a 30-40% rate of return within two months.”
3. Be Careful About Companies That Promise No Financial Risk
Be suspicious of businesses that say there are no risks or acknowledge that documented risk details are routine formalities mandated by the financial governance.
The currency futures and options trading is risky and could carry big risks for inexperienced consumers. The foreign currency futures and options markets are not a business to put any money that are not supposed to spend. For example, the money you got when you retired may not be used for foreign exchange trading. You may lose most or all of those funds very quickly by trading Forex and binary futures or options contracts. For this reason, beware of companies that make the following types of statements:
“With $6000 investment, the maximum you may lose is $400 to $450a day, but you are sure to make twice as much!”
“We guarantee to get back any losses you have.”
“Your deposit is highly secure.”
4. Do not Trade on Margin If You Don’t Understand What It Means
Margin trading can make you responsible for losses that greatly exceed the dollar amount you deposited.
Many Forex consumers ask customers to deposit cash that they generally call “margin,” usually amounts in the range of $1,000 to $3,000. Nevertheless, these amounts, which are relatively tiny in the foreign exchange markets, actually control much larger cash reserves of trading, a truth that normally is not explained to people.
Don’t work on margin if you don’t fully understand what it entails and aren’t prepared to accept losses that exceed the margin cash you paid.
5. Ask Outfits, which Work With the “Interbank Market”
Beware of companies, which claim that you should trade in the “interbank market,” or that they will do so on your behalf.
Unregulated currency trading outfits generally tell normal customers that their deposits are traded in the “interbank market,” where amazing returns can be created. Firms that trade binary options in the interbank market, however, are usually regular banks, investment institutions, and large firms, since the term “interbank market” refers simply to a loosely held network of Forex transactions done between banking organizations and other major start-ups.
6. Be cautious about Sending Cash on the Internet, By Snail Mail, etc.
Be especially alert to the issues of trading on the Web; it is easy to deposit funds on-line, but generally could be impossible to get refund.
It costs a Web advertiser just pennies per day to get an audience of millions; fake currency and binary options trading institutions have got to the Web as a cheap and effective method to reach a huge pool of potential customers.
Many companies offering currency trading on the Web are not located within America and may not have an address or any other data to recognize their country on their Web site. Be aware that if you move funds to those foreign start-ups, it may be impossible to recuperate your funds.
7. Currency and binary options Scams normally Target Members of Ethnic Minorities
Some currency and binary options trading scams target customers in ethnic communities, particularly persons in the Chinese, Japanese, and Indian immigrant communities, through advertisements in ethnic dailies and TV “infomercials.”
Sometimes those promotions talk about “job opportunities” for “account executives” to trade in Forex. Understand that “account executives” hired are usually required to use their own cash for currency trading, and also to bring in their friends to do likewise. What appears as a promising job opportunity occasionally is one way a large number of of these institutions lure customers into their business.