With financial markets unpredictable, many consumers are re-evaluating their investment options. Solicitations to trade foreign currency contracts, also known as " forex," are particularly tempting. Ads for high-return, low-risk investment opportunities in foreign currency trading are blanketing local newspapers, radio promotions and attractive Internet sites. Are these offers too good to be true?

Prior to purchasing any " forex," check whether the company is registered with the CFTC (www.cftc.gov) or is a member of the National Futures Association (www.nfa.org). Other sources of helpful information include your state securities commission (www.nasaa.org), Attorney General (www.naag.org) and Better Business Bureau (www.bbb.org).

* "Too good to be true" claims. Get-rich-quick schemes are actually lose-everything-quick schemes. Be particularly cautious if you have recently acquired a large sum of cash. Retirees make easy victims.

Sometimes, they are. While much forex trading is legitimate, the Commodity Futures Trading Commission (CFTC) reports a sharp rise in foreign currency trading scams. How does one sort through the offers to select a reputable operation? The CFTC and the Better Business Bureau offer the following warning signs of fraud to those who are considering forex investment opportunities.

posted by Administrator at 12:08 am & filed under Currency markets |