Forex trading is speculative and may result in substantial loss of funds, or even losses in excess of your initial margin deposit. It should therefore be undertaken only with "risk capital" It is your responsibility to consider whether foreign exchange trading is suitable for your financial position and investment objectives. If you do not thoroughly understand either the risks involved in Forex's various trading rules and policies, we strongly recommend you to study them appropriately.
Furthermore, we ask you to watch out for the following warning signs and take the necessary precautions before placing your funds. Stay away from opportunities that sound "Get rich quickly" including those involving foreign currency trading, tend to be frauds. Keep in mind that there is no such thing as a "free lunch." Be especially cautious if you have acquired a large sum of cash recently and are looking for a safe investment vehicle. In particular, retirees with access to their retirement funds may be attractive targets of fraudulent operators.
Avoid any company that predicts or guarantees large profits because of well-known current events, published reports or predictable seasonal changes in demand. Stay away from companies that promise little or no financial risk.
Be suspicious of companies that downplay risks or state that written risk disclosure statements are routine formalities imposed by the government.
Be wary of sending or transferring cash on the Internet, by mail or otherwise. Be alert to the dangers of trading online; it is very easy to transfer funds online, but often can be impossible to get a refund.
Many companies offering currency trading online are not located within the U.S. and do not display an address or any other information identifying their nationality on their Web site.
Be sure to obtain written documentation about the product, the company and its track record, in order to verify data. If you can, before doing business with any company, check it out with the Better Business Bureau ( www.bbb.org) and review the company's materials with someone whose financial advice you trust.
Do not deal with anyone who will not give you information on his or her background. Check out any information you receive to be sure that the company is and does exactly what it says. If in doubt, do not invest your money. If you cannot obtain solid information about the company and the investment, you may not want to risk your money. Unwillingness to provide a performance record. Always obtain the company's track record, and verify that data with other sources and someone whose financial advice you trust. Even the glossiest of brochures can contain false information.