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Forex: why not?

Recently updated on 11 Jun 2021

2 Dec 2016 - Forex Litigation - Min Read 4 min
Forex: why not?

Forex is a complicated market, in which foreign currencies are exchange assets. With the right preparation, and by taking due countermeasures, it can turn out to be a profitable game.

The Foreign Exchange Market is the international exchange market of foreign currencies, giving the term Forex, and its further abbreviation, FX.

The principal actors are brokers, those who liaise with financial markets, and traders, meaning private investors, banks, institutional investors or hedge funds.

The hall of negotiations is the Forex market, where international currencies are bought and sold.

It can be considered the largest market in the world, because any transaction of different currencies passes through it.

Since it is the largest, it is also considered amongst the most complicated markets, because currencies are subject to rapid and unpredictable variations.

Without adequate preparation it is impossible to manage transactions technically, let alone emotionally. The currencies are exchanged in an “over-the-counter” market, meaning without a specific residence.
Obviously other actors involved have their own specific geographical location.

It is important to know where brokers operate from

To retrace the addresses, thanks to the methods available to us, has never been so simple.

If, by looking at maps, you find yourself faced with improbable locations, the trader will probably also be untrustworthy.

You should also be very careful about those organisations with headquarters in the Cayman Islands, Malta or Ireland. It is probably better if they are in the United Kingdom or Cyprus.

You also need to bear in mind that having headquarters abroad means the need to start an international case in case you are a victim of fraud.

The lawyers at Boccadutri International Law Firm work across the world and can support you, in case you have ever had anything to do with pseudo-professionals in Forex that have taken possession of your money.

No commitments, high risk

To invest in Forex, there are no specific paths to follow. Brokers do not test the knowledge of traders before accepting their investments.
Traders do not always check the seriousness of brokers and might ignore the fact that they may not have certification.

The most common formula for investment proposed by bankers is that of binary options.

They work like bets: you bet on the revaluation or devaluation of a currency in the next 5, 10 or 30 minutes.

The time for a bet can also be 30 seconds. Often the wager is based on the most recent fluctuations to decide what to place your bets on, trying to take advantage of a swell, but predicting the future of a currency is never simple.

Forex is not a game. Even if it were, the rules would not be at all clear and you couldn’t expect there to be logic behind it.

If you do not wish to run the risk personally, you need to evaluate the best brokers or traders.

Someone is protecting you

The Consob, the National Commission for businesses and the stock market, which deals with the safeguarding of investors, took some measures against abusive operators.

As you can read in the 2015 annual report, it issued an alert by publishing 44 warnings relating to “subjects/people who have operated through online channels, putting into action violations of discipline on the subject of intermediaries.”

Beyond this, it sanctioned against 26 people for having operated without authorisation.

Often on the websites of brokers, transparency and clarity are lacking. They should provide information on the companies that they rely on, and whether they have obtained the approval on the part of any supervisory authority.

In this way, those who invest would at least have a basic understanding, and could distinguish regulated consultation companies from those that are not regulated.

It is possible to invest well

When you decide to invest in forex, you need a technique that can only be gained through years of experience.

Those who look into this market could (and should) first follow specific guidelines.

There are countless free ones on the net, often provided by the brokers themselves. Another precaution that could be adopted is that of inserting a “stop loss”. In this way you are not at the mercy of market trends.

The advice is to invest with caution and to trust certified brokers. But if this has proved not to be enough to protect yourself from risks, please contact our expert Forex lawyers.

Thanks to their understanding of the market, they will know how to suggest the best countermeasures to you in the case of unclear situations, or if you have been a victim of a Forex scam.

You can contact our lawyers by filling in this request form here.

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Calogero Boccadutri

Calogero Boccadutri is the Managing Partner of Boccadutri International Law Firm. He has trial experience in Forex, Personal Injury and Administrative litigation.

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