New user forex trading kesy start kary

s, if the investor loses money, while the dealer makes money.[16]

Although it is possible for a few experts to successfully arbitrage the market for an unusually large return, this does not mean that a larger number could earn the same returns even given the same tools, techniques and data sources. This is because the arbitrages "Trading foreign exchange is an excellent way for investors to find out how tough the markets really are. But I say to customers: if

are essentially drawn from a pool of finite size; although information about how to capture arbitrages is a nonrival good, the arbitrages themselves are a rival good. (To draw an analogy, the total amount of buried treasure on an island is the same, regardless of how mames as saying,

ny treasure hunters have bought copies of the treasure map.)

Paul Belogour, the Managing Director of a Boston-based retail forex trader, was quoted by the Financial Ti

The U.S. Commodity Futures Trading Commission (CFTC), which loosely regulates the foreign exchange market in the United States, has noted an increase in the amount of unscrupulous activity in t

he non-bank foreign exchange industry.[14] An official of the National Futures Association was quoted as saying, "Retail forex trading has increased dramatically over the past few years. Unfortunately, the amount of forex fraud has also

increased dramatically."[15] Between 2001 and 2006 the U.S. Commodity Futures Trading Commission has prosecuted more than 80 cases involving th

e defrauding of more than 23,000 customers who lost $350 million. From 2001 to 2007, about 26,000 people lost $460 million in forex frauds.[1] CNN quoted Godfried De Vidts, President of the Financial Markets Association, a European body, as saying, "Banks have a duty to protect their customers and they should make sure customers understand what they are doing. Now if people go online, on non-bank portals, how is this control being done?"

Not beating the market[edit]
The foreign exchange market is a zero sum game[5] in which there are many experienced, well-capitalized professional traders (e.g. working for banks) who can devote their attention full-time to trading. An inexperienced retail trader will have a significant information disadvantage compared to these traders.

Russell Erxleben
Joel N. Ward
WinCapita[20][21]
External links[edit]
US Commodity Futures Trading Commission Forex Fraud Advisory
See also[edit]
Boiler room
Bucket shop
Foreign exchange market
Forex scandal
Fraud
Gambler's conceit

Frauds might include churning of customer accounts for the purpose of generating commissions, selling software that is supposed to guide the customer to large profits,[9] improperly managed "managed accounts",[10] false advertising,[11] Ponzi schemes and outright fraud.[4][12] It also refers to any retail forex broker who indicates that trading foreign exchange is a low risk, high profit investment.[13]

Increase in fraud[edit]

In August, 2008 the CFTC set up a special task force to deal with growing foreign exchange fraud.[7] In January 2010, the CFTC proposed new rules limiting leverage to 10 to 1, based on " a number of improper practices" in the retail foreign exchange market, "among them solicitation fraud, a lack of transparency in the pricing and execution of transactions, unresponsiveness to customer complaints, and the targeting of unsophisticated, elderly, low net worth and other vulnerable individuals."[8]

Types of fraud[edit]
Russell Cline
Gambler's ruin

9 See also
10 References
Government interventions[edit]
High-yield investment program
2.1 Offices
2.2 License

3 Increase in fraud
4 Not beating the market
5 High leverage
6 Alleged scamming by country
6.1 Cyprus

Contents [hide]
1 Government interventions
2 Types of fraud
7 Convicted scammers
8 External links

5] meaning that whatever one trader gains, another loses. However, brokerage commissions and other transaction costs are subtracted from the results of all traders, making foreign exchange a negative-sum game.

"In a typical case, investors may be promised tens of thousands of dollars in profits in just a few weeks or months, with an initial investment of only $5,000. Often, the investor’s money is never actually placed in the market through a legitimate dealer, but simply diverted – stolen – for the personal benefit of the con artists."[6]