A broker main function is to facilitate trades between two parties no more no less any other assistant apart from this from your broker please be careful.
However before you commit your funds to any broker,please ensure that the broker is a regulated entity.
The regulatory body by that monitors the affairs of all kinds of online investment is ;THE COMMODITY FUTURES TRADING COMMISSION[CFTC].A united state of America federal agency with the primary aim of of overseeing the commodities markets including foreign currency trading. I heard of another one called [SIBA] i don't want to disturb you about that because i am so pleased with the [CFTC].A regulatory body located in a developed nation who has been in existence a very long time ago and who have tangible results to show for their labour unlike a regulatory body in a developing nation that emerge some four[4] years ago,hope you understand my claims,so lets keep moving.
A federal law enacted in DEC 2000,called the commodity futures modernization act of 2000[CFMA],MAKES CLEAR THAT THE COMMISSION HAS THE JURISDICTION AND AUTHORITY TO INVESTIGATE AND TAKE LEGAL ACTION TO CLOSE DOWN A WIDE ASSORTMENT OF UNREGULATED FIRMS OFFERING OR SELLING FOREIGN CURRENCY FUTURES AND OPTION CONTACT TO THE GENERAL PUBLIC.Inaddition,the CFTC has jurisdiction to investigate and prosecute foreign currency frauds occurring in its registered firms and their affiliates.
The CFTC warns that while forex trading can be legitimate for governments and large institutional investors concerned about flunctuations in international exchange rates and can even be appropriate for some individual investors.The average investor should be wary when it comes to forex offers.With this kind of information at hand what are you as trader expected to do;
- Do thorough investigation before investing Ur funds;ensure you are dealing with a licenced broker and not one private individual who has his own scamming interest at heart.Your broker must be registered or licenced by CFTC
- you can find out licenced brokers by visiting CFTC official website http://www.cftc.gov
- You can also make your findings through the NATIONAL FUTURES ASSOCIATION[NFA] on this link http://www.nfa.futures.org/basic
Please ensure you you type in this link appropriately because this scammers are allover,they are very professional you might be directed to a site that looks exactly like the real ones so be careful.I am very sure that this websites would give you resourceful information you need to know about your brokers.
In addition,if you think you 've been a victim of a forex scam you can file in your complains through a form on the CFTC'S website http://www.cftc.gov/enf/enfform.htm or better still,send a mail to; THE OFFICE OF COOPERATIVE ENFORCEMENT,CFTC,1155 21st street,NW,Washington,D.C 20581.
There are still some few things i would like to post about brokers please watch out!
Lastly,information is power,there are lots of information in this blog please take your time by clicking on them one after the other,they might contain that needed information you ve been searching for.Thanks
Till then, keep winning
