Avoid Financial Losses And Fraud With The Best Forex Trading Signals System

Forex signals are suggestions to make a trade on a foreign exchange currency pair. Both human analysts and automated forex robots may generate these signals. In view of the time critical value of the information they are invariably sent electronically to the client. Methods such as tweet, websites, emails, SMS and RSS are all used.

Any person considering subscribing to a forex signal service, or undertaking any form of currency trading should be aware of the risk of losses. Financial losses can occur in any financial transaction, but the potential high gains in forex trading have led to unscrupulous selling to investors who are not aware of all the risks.

In the US the CFTC federal agency (Commodity Future Trading Commission is responsible for regulation of foreign exchange markets. The CFTC has published important advice. This warns potential investors to take particular care before participating in foreign exchange trading.

While currency trading is a legitimate and economically vital activity, a number of forms of trading have been touted to defraud the public. For example you are urged to be cautious when firms claim high profits with low risks: usually high profits are only possible if you are prepared to take high risks.

Also beware of claims that low investment can lead to high profits when you are trading on margin. The investor on margin may be liable for losses many times larger than their original small investment. If you do not 100% understand what trading on margin means then do not take the risk.

Fraudulent and unscrupulous promoters are particularly fond of targeting those with retirement nest-eggs. If you lose your money to fraud you will not easily get it back. If you have money you cannot afford to lose then do not invest.

Be wary of transferring money on the internet. Many companies offering on-line forex trading are not located in the US and are outside CFTC jurisdiction. They may not display any identification of nationality on their website. If in doubt, do not invest.

Check the company's performance track record. You should be able to get this from any responsible firm. If individuals or firms do not have this information then beware. Also beware of purely verbal information.

Network with other forex traders. Look for reviews of forex services, and ask questions about forex signal services in on-line forums.

Check if a individual or firm is properly registered. They should be registered with CFTC and NFA (National Futures Association). Also check the fraud page by visiting the CFTC website.