The term "Forex scam" is abbreviation of foreign exchange scam. A Forex scam is basically a confidence game played against the fairly unsophisticated "retail speculators" in the foreign exchange market.

The Forex market is an international exchange market, where money is sold and bought freely. It is the largest market in the world in the terms of cash value traded.

The Forex market used to be the financial playground of big financial institutions, but online Forex trading has opened the gates of this market for general public.

Online Forex trading has no doubt increased financial investment opportunities in recent years, but has give rise to several complications and trading scams.

The Commodity Futures Trading Commission (CFTC) has noticed a sharp rise in foreign currency (Forex) trading scams, and it has been seen that the retail speculators or small traders are the major targets of such scams.

The Commodity Futures Modernization Act of 2000 (CFMA), the federal law enacted in December 2000, empowers the CFTC with 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 options contracts to the general public.

The CFTC also has jurisdiction to investigate and prosecute foreign currency fraud occurring in its registered firms and their affiliates.

The commission has also issued an Advisory concerning the offering and trading of foreign currency futures and options contracts involving the retail public, and also revised and re-issued its 1998 Consumer Alert on foreign currency trading to help the retail public identify foreign currency trading scams.

The CFTC's Advisory reaffirms that "off-exchange trading of foreign currency futures and options contracts with retail customers by a counter party that is not a regulated financial entity as set forth in the CFMA is unlawful."

The CFTC in another Consumer Alert warns consumers of sales solicitations appearing in newspapers, radio or television promotions, or attractive Internet websites, touting high-return, low-risk investment opportunities in foreign currency trading, and of highly paid currency-trading employment opportunities.

The CFTC advises people to beware of such claims; they may be scams and they should be highly cautious while foreign currency trading.

Best Wishes,

P.S. If you would like to see what I believe to be the TOP 3 Scams on 
the internet today, so you can be aware of scams just like this one then 
Join Below, and I will send you My Free Exclusive Report Instantly.