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Lyle wrote:
>As Mark has kindly pointed out, there are a lot of scams out there, so
>CAVEAT EMPTOR.
Mark and Lyle are 100% correct. Heed their advice and proceed with
extreme caution!
If you decide to watch your friend trade, the first thing I would
suggest you note is the firm she trades through. If you don't see
something familiar like REFCO, et al.......RUN!
You should also be aware that, unlike traditional U.S. securities and
commodities brokers, the arena at issue here is almost completely
unregulated. If you have a problem (of most any kind), don't expect
the likes of a CFTC (or any other regulatory agency) to back you up;
they can't because the types of transactions you will be effecting
don't come within the purview of any federal act (e.g. the CEA) and,
therefore, they have no jurisdiction. So again, good luck if you have
a problem; recovering funds is difficult enough even when the entity
is subject to governmental regulation (just ask anyone who had an
account with Futurewise Trading Group).
If you decide FOREX is for you, then you need to place your funds with
an established, reputable, and large firm. Even if you lose money
trading (highly probable), there's at least some comfort in knowing
(whatever is left of) your account is relatively safe with an industry
giant (e.g. Refco, Goldman, Fifth Third, et al).
Good luck.
Best regards,
Jim
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