The CFTC finally made a common sense rule on Forex this past week – saying that if you are soliciting accounts to trade forex, you have to be registered to sell forex accounts. What a ground breaking idea (heavy sarcasm). Here’s the release.
For those of us who have to be registered to sell stocks, real estate, bonds, insurance, commodity futures, fly a plane, and so on – this is pure common sense. The CFTC finally caught up based on loads of complaints and customer fraud actions against firms which were not registered in any capacity. These non registered firms had no oversight on their promotional materials, sales practices, execution of customer orders, and so on – leading unscrupulous firms to take advantage of unsuspecting customers. Read our old newsletter titled: Managed Forex trading still the unchartered territory of alternative investments?
This should only help Managed Forex in our opinion, which has been plagued by unrealistic expectations based off of the materials and performance put out in the public domain by these unregistered firms and individuals, by making it a more even playing field for those who are already abiding by the rules and trying to generate returns for their clients via the F/X markets.
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