What Every Investor Should Know
What is forex (foreign currency) fraud? Foreign currency exchange rates, commonly known as "forex," are the costs to exchange one country's currency for another country's currency. Since currency exchange rates fluctuate, traders can participate in the forex market as speculators (individuals and companies who buy and sell foreign currencies) hoping to profit from changes in the currency rates.
Like any investment, forex investments can be abused. So, how does an investor know if the forex investment program advertised on the radio, newspaper or website is a potential scam? Here are some warning signs:
1. Get-rich-quick claims with little money down.
Obtain important background information about forex dealers and their salespeople from the National Futures Association (NFA) at www.nfa.org.
Read more about forex fraud and what questions you need to ask when buying forex investments. To order this free publication, visit the Fraud Prevention Resource Library. For more general information about wise investing and fraud prevention, visit the Investor Resource Library, General A-Z.