National Futures Association

The foreign exchange market, as most financial markets is very unpredictable. Therefore, be suspicious of such claims and those who make them. 3. Employment Ads Many Forex traders Forex trading firms use employment ads to attract individuals with capital to trade using their systems. Employment ads, which often appear in newspapers and on the Internet, state that a foreign currency trading firm is looking for individuals to teach to operate in the foreign exchange market by signing capital.

Those who respond to the notice, convinced the company that made a fortune trading currencies if they participate in the training program of the company. During the training process, which often occurs in a demonstration system, the novice traders are encouraged and told that their demo trading records show that significant gains have been achieved, they are ready to earn real money and would be very successful. Despite the appreciation of the company as a rookie trader's brilliant newcomer, no firm capital is provided to the operator, instead of rookie enthusiasm is told to use their own capital to trade using the platform of the company. In addition to various fees imposed on traders using the platform of the company, the Forex firm makes money as an agent of the introduction. Each time the novice trader to trade through the company's system, much of the spread charged by the broker is shared and goes into the coffers of the company.

After a few months, the novice operator lost all his capital and leaves. The company's motto, after having made money during the short season rookie operator, is aimed at new entrants willing to become rich foreign exchange operations. 4. Forex Company is a member of the CFTC or NFA Before signing a check and provide sweat equity to a Forex company, make sure you investigate the entity. Check if the company currency, with which you do business, is registered with the U.S. Commodity Futures Trading Commission or the National Futures Association. Many scam artists falsely claim that their firms are registered with the CFTC and the NFA to gain the trust of a potential investor. Do not trust anyone, the investigation of the company and the background of the individuals involved before parting their hard earned money. The Internet has opened the way for many new opportunities for retail investors. The Forex market is exciting and fast. Investors who are careful and diligent are likely to avoid the dangers of this market and will benefit from the opportunities Foreign currency trading has to offer. John Beki is the founder of an information resource for novice and professional Forex traders.

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