Be extremely wary of forex companies that guarantee forex profits, or that tout extremely high forex performance. In many cases, those claims are false.

The following are examples of statements that either are or most likely are fraudulent:

• "Whether the forex market moves up or down, in the currency market you will make a profit."  (forex)
• "Make $1000 per week, every week"  (forex)
• "We are out-performing 90% of domestic investments." (forex)
• "The main advantage of the forex markets is that there is no bear market." (forex)
• "We guarantee you will make at least a 30-40% rate of return within two months." (forex)
  

• Forex Scams
  Generally speaking, foreign currency futures and options contracts may be traded legally on an exchange or board of trade that has been approved by the CFTC. (forex)

• Forex Fraud
  Have you been solicited to trade forex contracts (also known as "forex")?  (forex)

• Understanding Legitimate Foreign Currency Operations
  Generally speaking, forex futures and options contracts may be traded legally on an exchange or board of trade that has been approved by the CFTC.  (forex)

• Stay Away From Opportunities That Sound Too Good to Be True
  Get-rich-quick schemes, including those involving forex trading, tend to be frauds. (forex)

• Avoid Any Company that Predicts or Guarantees Large Profits
  Be extremely wary of forex companies that guarantee profits, or that tout extremely high performance. In many cases, those claims are false. (forex)

• Stay Away From Companies That Promise Little or No Financial Risk
  Be suspicious of forex companies that downplay risks or state that written risk disclosure statements are routine formalities imposed by the government. (forex)

• Don't Trade on Margin Unless You Understand What It Means
  Margin forex trading can make you responsible for losses that greatly exceed the dollar amount you deposited. (forex)

• Question Firms That Claim To Trade in the "Interbank Market
  Be wary of forex firms that claim that you can or should trade in the "interbank market," or that they will do so on your behalf. (forex)

• Be Wary of Sending or Transferring Cash on the Internet, By Mail
  Be especially alert to the dangers of forex trading on-line; it is very easy to transfer funds on-line, but often can be impossible to get a refund. (forex)

• Currency Scams Often Target Members of Ethnic Minorities
  Some forex currency trading scams target potential customers in ethnic communities, particularly persons in the Russian, Chinese and Indian immigrant communities, through advertisements in ethnic newspapers and television "infomercials". (forex)

• Warning Signs Of Commodity "Come-Ons"
  If you are solicited by a forex company to purchase commodities, watch for the warning signs listed below: (forex)

• More Information and Contacts
  Questions concerning this advisory may be addressed to the CFTC's Office of Public Affairs at (202) 418-5080.

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