CFTC Advisory on Forex Brokers

Discussion in 'Forex Brokers' started by Rocko1, Apr 11, 2007.

  1. Rocko1


    Quick run down-

    FX futures and options contracts may be traded legally on an exchange or board of trade that has been approved by the CFTC.
    Trading can be also be conducted legally where one or both parties to the trading is (or is a regulated affiliate of) a bank, insurance company, registered securities broker-dealer, futures commission merchant or other financial institution, or is an individual or entity with a high net worth.

    Warning Signs of Fraud

    1. Stay Away From Opportunities That Sound Too Good to Be True

    2. Avoid Any Company that Predicts or Guarantees Large Profits

    3. Stay Away From Companies That Promise Little or No Financial Risk

    4. Don't Trade on Margin Unless You Understand What It Means

    5. Question Firms That Claim To Trade in the "Interbank Market"

    6. Be Wary of Sending or Transferring Cash on the Internet, By Mail or Otherwise

    7. Currency Scams Often Target Members of Ethnic Minorities

    8. Be Sure You Get the Company's Performance Track Record

    9. Don't Deal With Anyone Who Won't Give You Their Background
  2. Rocko,

    Well put. Good luck on gettin gthe fools who rush in to actually read this.
  3. Shehab



    Thank you,

    Toronto is currently being hit with tons of ads on TV and community newspapers with "FX Trading - unlimited potential", "10% return in a day, everyday" and "Trade in FX, the world's largest markets".

    Ofcourse I have never heard of most of the firms and most come here from South Florida, with a sleek pitchman "I was 19 when I made my first million...blah blah'.

    Current targets seem to be ethnic minorities and those who operate cash businesses like my gf's dad.

  4. Rocko1


    Yeah it's a real jungle out there. This is probably why Schwager (Market Wizards series) hasn't bothered to interview any Forex traders.
  5. He has. Bill Lipschutz ("The Sultan of Currencies") in NMW. It's the book opener. You haven't bothered to read Schwager books, have you?
  6. Rocko1


    I think it's pretty obvious that I haven't read all his books, lol. Which edition was it?
    Who was Lipschutz' broker by the way?
  7. Shehab



    I just finished the first one "Market Wizards"

    Absolutely love, read high lighted rules and stories often

    waiting to get "New Market Wizards" by mail soon
    Cheap prices available
  8. It's "The New Market Wizards." Lipschutz made his name as a currency trader at Sally. That was way before forex, for better or for worse, became easily accessible to everyone fully equipped with a dial tone and a pulse.

    Here's that chapter as a pdf file. I trust Mr. Schwager wouldn't mind, if it might get more people interested in his superb, inspirational books. (I own most of them in hardcover, incl. some relatively obscure ones.) Enjoy.
  9. Rocko1


    Thank you very much for the excerpt, I'm gonna get on it right away.
    #10     Apr 12, 2007