How can I prevent fraud when trading forex?

There exists the CFTC or Commodity Futures Trading Commission which has jurisdiction and authority to investigate and take legal
action to close down a wide assortment of unregulated firms offering or
selling foreign currency futures and options contracts to the general
public. In addition, the CFTC has jurisdiction to investigate and
prosecute foreign currency fraud occurring in its registered firms and
their affiliates.

There is a lot of interesting information on the CFTC (Commodity
Futures Trading Commission) website, one of those things being a
spreadsheet of net monthly capital statements for all Forex brokers.
The important information in this spreadsheet are the Adjusted Net Capital and Net Capital Requirements
which is the amount of capital each firm possesses in excess of minimum
set by regulators. By looking in this spreadsheet, one can make
assumptions of the financial stabilility of their broker.

You can find the spreadsheets at http://www.cftc.gov/tm/tmfcm.htm

You can also visit their website at http://www.cftc.gov/cftc/cftcbeforetrade.htm.

An even more beneficial site is provided by the National Futures Association which provides the Background Affiliation Status Information Center where you can lookup Commodity Futures Trading Commission (CFTC) registration
and NFA membership information. This information is contributed by
NFA, the CFTC and the U.S. futures exchanges.
This is an excellent site to find out if your forex resource is reputable.

http://www.nfa.futures.org/basicnet/

 

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How can I prevent fraud when trading forex?

There exists the CFTC or Commodity Futures Trading Commission which has jurisdiction and authority to investigate and take legal
action to close down a wide assortment of unregulated firms offering or
selling foreign currency futures and options contracts to the general
public. In addition, the CFTC has jurisdiction to investigate and
prosecute foreign currency fraud occurring in its registered firms and
their affiliates.

There is a lot of interesting information on the CFTC (Commodity
Futures Trading Commission) website, one of those things being a
spreadsheet of net monthly capital statements for all Forex brokers.
The important information in this spreadsheet are the Adjusted Net Capital and Net Capital Requirements
which is the amount of capital each firm possesses in excess of minimum
set by regulators. By looking in this spreadsheet, one can make
assumptions of the financial stabilility of their broker.

You can find the spreadsheets at http://www.cftc.gov/tm/tmfcm.htm

You can also visit their website at http://www.cftc.gov/cftc/cftcbeforetrade.htm.

An even more beneficial site is provided by the National Futures
Association which provides the Background Affiliation Status
Information Center where you can lookup Commodity Futures Trading Commission (CFTC) registration
and NFA membership information. This information is contributed by
NFA, the CFTC and the U.S. futures exchanges.
This is an excellent site to find out if your forex resource is reputable.

http://www.nfa.futures.org/basicnet/

You can find this and more useful answers to your questions in the Forex Knowledge Base.

Popularity: 1%