FOREIGN CURRENCY TRADING FRAUDS

	Welcome to Forex Fraud Home Who to contact Contact     What to look for Updated 2.12.05 Most Forex fraud and commodity fraud is committed by either firms located in South Florida (Boca Raton was voted by CNBC the telemarketing fraud capital of the world in 2000), Southern California or outside the United States\. Russia is currently a major source of investment fraud. Never make a check or bank wire payable to ANYONE other that a FCM registered with the NFA. In the majority of cases Forex fraud is perpetrated by  firms located in the United States and the principals and brokers of the firm and  were at one time registered with the National Futures Association (800) 621-3570 and have had their licenses revoked. There is a lot of fraud from boiler rooms that are telling there clients to make the check payable to a offshore FCM or in many cases a Bahamas FCM. THERE ARE NO BAHAMAIAN FCM's that I am aware of PERIOD, with the exception of major World Banks. The Bahamas are the country of choice for fraud and  to steal your money because the Bahamas are 20 minuets from South Florida (Miami, Fort Lauderdale and West Palm Beach) and one and one half hours by private boat. 100% of the money you invest in Forex in the Bahamas will be stolen and will NEVER be placed into ANY trade. If you have been victimized in this manner of fraud or contacted to invest in Forex in the Bahamas call the FBI in Miami at 305-944-9101. Please keep in mind that most of the law enforcement agencies and regulatory agencies are fully aware of who is perpetrating investment and Forex fraud and where they are located. Due to the great burden and lack of funding placed on Law Enforcement and the Regulatory Agencies action is only taken when there is pressure from the public. Only by contacting EVERYONE that you can will get results. The paperwork you signed when opening your account means nothing in a Court of Law when there is fraud involved on the part of the broker.In recent years there has been a sharp rise in commodity, foreign currency - Forex trading fraud and scams. Consumers should be alert to investment fraud, scams and companies that sell Forex currencies and commodity brokers based on sales pitches claiming that customers can make a lot of money with little risk.  Sales solicitations appearing in newspapers, telemarketing, radio or television promotions, or attractive Internet websites, touting high-return, low-risk investment opportunities in foreign currency trading more often than not are fraud or a scam. If it sounds to good to be true it probably is. The United States Commodity Futures Trading Commission (CFTC) is the federal agency that regulates the trading of Forex currency, commodity futures and options contracts in the United States and takes action against firms suspected of illegally or fraudulently selling Forex currency, commodity futures and options. The CFTC has jurisdiction to investigate and prosecute Forex currency fraud and scams and commodity fraud and scams occurring in its registered Forex and commodity firms and their affiliates. Off-exchange trading of Forex, foreign currency futures and options contracts with retail customers by a counterparty that is not a regulated financial entity as set forth in the CFMA is unlawful and may be a fraud or scam. Although Forex and commodity dealers who are regulated by NFA must disclose their charges to retail customers, there are no rules about how a dealer charges a customer for the services the dealer provides or that limit how much the dealer can charge. Before opening a Forex, currency trading or commodity account, you should check with several dealers and compare their charges as well as their services. Some firms charge a per trade commission, while other firms charge a mark-up by widening the spread between the bid and ask prices they give their customers. Some Forex and currency firms may charge both a commission and a mark-up. In my opinion any firm selling Forex, commodities or foreign currency charging more than $50 is either a scam or fraud. Some Forex and currency dealers guarantee that you will not lose more than you invest, which includes both the initial deposit and any subsequent deposits to keep the position open. There are two significant differences between buying off-exchange Forex currency options and buying options on futures contracts. First, when you exercise an option on an exchange-traded futures contract, you receive the underlying exchange-traded futures contract. When you exercise an off-exchange Forex currency option, you will probably receive either a cash payment or a position in the underlying currency. Second, NFA抯 options brochure only discusses American-style options, which can be exercised at any time before they expire. Many Forex currency options are European-style options, which can be exercised only on or near the expiration date. You should understand which type of option you are purchasing. Retail off-exchange Forex currency trades are not guaranteed by a clearing organization and are the most sustainable to fraud and scams. Furthermore, funds that you have deposited to trade Forex currency  contracts are not insured and do not receive a priority in bankruptcy. Even customer funds deposited by a dealer in an FDIC-insured bank account are not protected if the dealer goes bankrupt. There is no central marketplace unlike regulated futures exchanges in the retail off-exchange. Forex currency market there is no central marketplace with many buyers and sellers. The Forex currency dealer determines the execution price, so you are relying on the dealer抯 integrity for a fair price. This is one of the major areas where fraud and scams occur in Forex an currency trading. The Commodity Exchange Act (CEA) allows the sale of OTC Forex currency futures and options to retail customers if, and only if, the counterparty (the person on the other side of the transaction) is a regulated entity. These regulated entities include the following: financial institutions, such as banks and savings associations registered broker-dealers and certain of their affiliates, registered futures commission merchants (FCM's) and certain of their affiliates, certain insurance companies and their regulated affiliates, financial holding companies, and investment bank holding companies. Under the CEA, the CFTC has the authority to shut down any unregulated entity that acts as a counterparty to Forex currency futures or options transactions with retail customers. The CFTC also has the authority to take action against registered FCMs and their affiliates for violating the anti-fraud and anti-manipulation provisions of the CEA in connection with OTC Forex currency transactions involving retail customers, but the CFTC cannot adopt rules to regulate these transactions. NFA has rules to protect customers from fraud and scams in the retail off-exchange Forex currency market. Firms that introduce customers to Forex currency dealers do not have to be regulated entities. NFA抯 rules provide, among other things, that a Forex currency dealer FCM must take responsibility for the activities of unregulated entities that solicit retail customers including and fraud or scams perpetrated by the introducing broker and the brokers of the firm that introduced the account. Additionally, NFA抯 rules require Forex currency dealer FCMs to supervise their employees and agents and any affiliates that act as counterparties to retail Forex transactions to ensure the public is protected from fraud and scams by  its introducing brokers. NFA抯 Forex rules do not apply to all FCMs and their affiliates, however. Therefore, you should ask the dealer if NFA regulates its Forex currency activities. You should ask the dealer how it is regulated and check with the dealer抯 regulator about the dealer抯 registration status and background to ensure they have not had any complaints of fraud or scams. You should also ask the dealer if its regulator has adopted rules to regulate its retail Forex currency activities. Unlike Forex currency dealers, firms and individuals that solicit retail accounts for Forex currency dealers and manage those accounts do not have to be regulated or affiliated with a regulated firm. Therefore, you should find out if the person抯 Forex activities are regulated and by whom. If the person is not regulated, you may be exposed to additional risks of fraud. Just as you wouldn抰 consider buying a house or a car without carefully reading and understanding the terms of the contract, neither should you establish a Forex currency account without first reading and understanding the Account Agreement and all other documents supplied by your dealer. Both the CFTC and NFA offer programs that may be available for resolving monetary disputes involving your Forex currency account. Information about NFA抯 arbitration program is available by calling NFA at 800-621-3570. The CFTC offers a reparation program for resolving disputes. If you want information about filing a CFTC reparations complaint, contact the CFTC's Office of Proceedings at 202-418-5250 Don't become a victim of Forex fraud commodity fraud or other types of investment fraud or scams.

	Welcome to Forex Fraud Home Who to contact Contact What to look for Updated 2.12.05 Most Forex fraud and commodity fraud is committed by either firms located in South Florida (Boca Raton was voted by CNBC the telemarketing fraud capital of the world in 2000), Southern California or outside the United States\. Russia is currently a major source of investment fraud. Never make a check or bank wire payable to ANYONE other that a FCM registered with the NFA. In the majority of cases Forex fraud is perpetrated by firms located in the United States and the principals and brokers of the firm and were at one time registered with the National Futures Association (800) 621-3570 and have had their licenses revoked. There is a lot of fraud from boiler rooms that are telling there clients to make the check payable to a offshore FCM or in many cases a Bahamas FCM. THERE ARE NO BAHAMAIAN FCM's that I am aware of PERIOD, with the exception of major World Banks. The Bahamas are the country of choice for fraud and to steal your money because the Bahamas are 20 minuets from South Florida (Miami, Fort Lauderdale and West Palm Beach) and one and one half hours by private boat. 100% of the money you invest in Forex in the Bahamas will be stolen and will NEVER be placed into ANY trade. If you have been victimized in this manner of fraud or contacted to invest in Forex in the Bahamas call the FBI in Miami at 305-944-9101. Please keep in mind that most of the law enforcement agencies and regulatory agencies are fully aware of who is perpetrating investment and Forex fraud and where they are located. Due to the great burden and lack of funding placed on Law Enforcement and the Regulatory Agencies action is only taken when there is pressure from the public. Only by contacting EVERYONE that you can will get results. The paperwork you signed when opening your account means nothing in a Court of Law when there is fraud involved on the part of the broker.In recent years there has been a sharp rise in commodity, foreign currency - Forex trading fraud and scams. Consumers should be alert to investment fraud, scams and companies that sell Forex currencies and commodity brokers based on sales pitches claiming that customers can make a lot of money with little risk. Sales solicitations appearing in newspapers, telemarketing, radio or television promotions, or attractive Internet websites, touting high-return, low-risk investment opportunities in foreign currency trading more often than not are fraud or a scam. If it sounds to good to be true it probably is. The United States Commodity Futures Trading Commission (CFTC) is the federal agency that regulates the trading of Forex currency, commodity futures and options contracts in the United States and takes action against firms suspected of illegally or fraudulently selling Forex currency, commodity futures and options. The CFTC has jurisdiction to investigate and prosecute Forex currency fraud and scams and commodity fraud and scams occurring in its registered Forex and commodity firms and their affiliates. Off-exchange trading of Forex, foreign currency futures and options contracts with retail customers by a counterparty that is not a regulated financial entity as set forth in the CFMA is unlawful and may be a fraud or scam. Although Forex and commodity dealers who are regulated by NFA must disclose their charges to retail customers, there are no rules about how a dealer charges a customer for the services the dealer provides or that limit how much the dealer can charge. Before opening a Forex, currency trading or commodity account, you should check with several dealers and compare their charges as well as their services. Some firms charge a per trade commission, while other firms charge a mark-up by widening the spread between the bid and ask prices they give their customers. Some Forex and currency firms may charge both a commission and a mark-up. In my opinion any firm selling Forex, commodities or foreign currency charging more than $50 is either a scam or fraud. Some Forex and currency dealers guarantee that you will not lose more than you invest, which includes both the initial deposit and any subsequent deposits to keep the position open. There are two significant differences between buying off-exchange Forex currency options and buying options on futures contracts. First, when you exercise an option on an exchange-traded futures contract, you receive the underlying exchange-traded futures contract. When you exercise an off-exchange Forex currency option, you will probably receive either a cash payment or a position in the underlying currency. Second, NFA抯 options brochure only discusses American-style options, which can be exercised at any time before they expire. Many Forex currency options are European-style options, which can be exercised only on or near the expiration date. You should understand which type of option you are purchasing. Retail off-exchange Forex currency trades are not guaranteed by a clearing organization and are the most sustainable to fraud and scams. Furthermore, funds that you have deposited to trade Forex currency contracts are not insured and do not receive a priority in bankruptcy. Even customer funds deposited by a dealer in an FDIC-insured bank account are not protected if the dealer goes bankrupt. There is no central marketplace unlike regulated futures exchanges in the retail off-exchange. Forex currency market there is no central marketplace with many buyers and sellers. The Forex currency dealer determines the execution price, so you are relying on the dealer抯 integrity for a fair price. This is one of the major areas where fraud and scams occur in Forex an currency trading. The Commodity Exchange Act (CEA) allows the sale of OTC Forex currency futures and options to retail customers if, and only if, the counterparty (the person on the other side of the transaction) is a regulated entity. These regulated entities include the following: financial institutions, such as banks and savings associations registered broker-dealers and certain of their affiliates, registered futures commission merchants (FCM's) and certain of their affiliates, certain insurance companies and their regulated affiliates, financial holding companies, and investment bank holding companies. Under the CEA, the CFTC has the authority to shut down any unregulated entity that acts as a counterparty to Forex currency futures or options transactions with retail customers. The CFTC also has the authority to take action against registered FCMs and their affiliates for violating the anti-fraud and anti-manipulation provisions of the CEA in connection with OTC Forex currency transactions involving retail customers, but the CFTC cannot adopt rules to regulate these transactions. NFA has rules to protect customers from fraud and scams in the retail off-exchange Forex currency market. Firms that introduce customers to Forex currency dealers do not have to be regulated entities. NFA抯 rules provide, among other things, that a Forex currency dealer FCM must take responsibility for the activities of unregulated entities that solicit retail customers including and fraud or scams perpetrated by the introducing broker and the brokers of the firm that introduced the account. Additionally, NFA抯 rules require Forex currency dealer FCMs to supervise their employees and agents and any affiliates that act as counterparties to retail Forex transactions to ensure the public is protected from fraud and scams by its introducing brokers. NFA抯 Forex rules do not apply to all FCMs and their affiliates, however. Therefore, you should ask the dealer if NFA regulates its Forex currency activities. You should ask the dealer how it is regulated and check with the dealer抯 regulator about the dealer抯 registration status and background to ensure they have not had any complaints of fraud or scams. You should also ask the dealer if its regulator has adopted rules to regulate its retail Forex currency activities. Unlike Forex currency dealers, firms and individuals that solicit retail accounts for Forex currency dealers and manage those accounts do not have to be regulated or affiliated with a regulated firm. Therefore, you should find out if the person抯 Forex activities are regulated and by whom. If the person is not regulated, you may be exposed to additional risks of fraud. Just as you wouldn抰 consider buying a house or a car without carefully reading and understanding the terms of the contract, neither should you establish a Forex currency account without first reading and understanding the Account Agreement and all other documents supplied by your dealer. Both the CFTC and NFA offer programs that may be available for resolving monetary disputes involving your Forex currency account. Information about NFA抯 arbitration program is available by calling NFA at 800-621-3570. The CFTC offers a reparation program for resolving disputes. If you want information about filing a CFTC reparations complaint, contact the CFTC's Office of Proceedings at 202-418-5250 Don't become a victim of Forex fraud commodity fraud or other types of investment fraud or scams.