There is no doubt that you can make a lot of money trading foreign currency on the forex market. Even though the market is extremely reliable, there are many people out there who would like to take advantage of new traders who are inexperienced with the market. Potential forex currency traders should beware of online currency trading sites that offer instant riches.
While there is much discussion about beginning to regulate foreign currency traders, right now there is none. This means that many in the forex currency trading industry - especially those involved in online currency trading - are not registered brokers.
There is a federal law in the United States - the Commodity Futures Modernization Act of 2000 - which provides for a special commission intended to investigate suspicious or fraudulent activity on the foreign currency trading market.
Just because there are some frauds in forex trading doesn't mean that you should avoid the market. In fact, the foreign currency trading market is one of the most lucrative businesses that one can start. The important thing is that you learn how to protect yourself from potential frauds in order to protect your forex profits. For example, beware of brokers that claim there is no risk in currency trading. There are no sure-fire ways to invest and this broker is leading your astray. Watch out as well for any broker that promises exorbitant profits. While there are plenty of profits to be made, don't expect to become a rich overnight and anyone who promises that is lying.
Most importantly - do your homework! Before becoming involved with any broker, it is a good idea to do some research. Check both their background and the background of the company that they are representing. Also, deal only with brokerages that are registered with the regulatory commission.
This is the best way to protect yourself and your profits from potential frauds.
