Like that old saying goes, "if it's too good to be true, then it probably is". Managers who promise astronomical yearly profits with minimal risks, which are not member of the NFA, and whose reviews are invariably accompanied by an affiliate link, are likely to be a scam. Trading robots that are sold on a web page featuring a more-than-normal count of exclamation marks, or only emphasizing profits without mentioning the risks associated with trading in a financial market, are likely to be fraudulent as well. Today we're showing you what to look for before putting your money into forex.
NFA Membership
The National Futures Association (NFA) is a subsidiary of the CFTC (Commodity Futures Trading Commission) and an independent, self-regulatory organization of the commodities and futures market in the United States. Its aim is to oversee and protect investors from fraudulent commodities and futures activities; it also acts as an arbiter to address and resolve consumer complaints.
Traders and organizations who choose to become NFA members have to undergo a complex screening process, including the submission of fingerprints to the FBI for criminal background checks. This gives you, the client, a reasonable guarantee of the member's honesty and the right to turn to the NFA in case of a dispute. Most financial organizations are required by U.S. law to become members, although there are exceptions (see here for more details).
Again, careful inspection and contact (possibly vis-a-vis) with an actual client remain the best ways to protect yourself from throwing your money in the gutter.
