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Despite the fact that the futures markets are a great way to make money, there are several companies out there that are considered scams. Most of these companies are based in the United States and are not regulated by the CFTC or NFA.

Warning signs of a scam futures exchange

Fortunately, there are plenty of ways to keep your hard earned cash safe. The best way to do this is to arm yourself with the facts. Below are just a few of the many ways to avoid being conned.

The most obvious way to avoid becoming a victim is to steer clear of unscrupulous salespeople. These scammers have been known to masquerade as investment experts or even stockbrokers. To avoid these fraudsters, enlist the help of family or friends to steer you in the right direction. In particular, be wary of individuals who are overly enthusiastic or obnoxious. If you do find yourself falling for their scams, a quick phone call to your bank may be all it takes to save you from the evils of online financial fraud.

A better way to avoid the scams is to arm yourself with a list of credible investment and financial institutions. These firms are likely to accept checks, credit cards, and wire transfers.

They are not regulated by the CFTC or NFA

Despite the fact that scam futures exchanges are not regulated by the CFTC or NFA, consumers should still check to see if the intermediary is registered with the CFTC or NFA. In addition, consumers should check to see if the intermediary has a history of disciplinary actions.

The Commodity Exchange Act (CEA) gives the CFTC jurisdiction over off-exchange foreign currency transactions and leveraged foreign currency transactions. The CEA also gives the CFTC the authority to enforce the CEA. The CEA also requires certain individuals to be registered with the CFTC.

The CEA also contains suitability requirements for transactions involving security futures products. For example, a firm offering security futures products must have a standardized disclosure statement for all customers. The CEA also contains a listing requirement that prohibits transactions without suitability requirements. In addition, the CEA also requires that a firm have a minimum amount of risk disclosure.

The CEA also includes an exception that allows a futures association to prohibit futures business with an FCM. However, a futures association must also register with NFA.

They are not market manipulation or commodities fraud

CFTC, the Commodity Futures Trading Commission, is a federal agency that was established to oversee the futures market. After the Great Depression, federal securities laws were passed to protect consumers from fraudulent activities. They include requirements for the registration of securities and rules for trading. These laws have a variety of penalties, including fines and jail time. The Securities Act of 1933 also provides for rules for trading and dispersing information.

The CFTC has the authority to enforce price manipulation. Specifically, it has the power to restrict financial institutions from holding positions in 26 critical commodity futures contracts. However, the exchanges have refused to self-regulate. They have allowed excessive speculation and failed to protect commodity producers and users.

The Chicago Mercantile Exchange’s system failed to detect market manipulation for three years. A judge threatened two CFTC commissioners with contempt of court. The exchanges also failed to use trade data monitoring to detect contract positions.

The Commodity Futures Trading Commission created a division of enforcement to address violations of the law. It has issued an Investor Alert for binary options.