Many people are probably not familiar with forex trading. Forex trading is the name for the very speculative investing in trading foreign currencies. It definitely is not an investment for inexperienced investors and while it certainly is legal, there have been many scammers who use forex trading as a hook to scam people. Fortunately, the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) are vigilant at identifying scams, but much like the carnival game whack-a-mole, as soon as one forex scam is shut down another pops up.
Lately there has been a lot of attention given to the use of Artificial Intelligence guided forex investing. This is done through computer programs known as forex robots that can guide you in your forex trading decisions. The developers of these computer programs build particular trading strategies into the software . There are different types of AI guided forex robots with some being fully automated and governed by their algorithms in making the trades and others that are signal based, meaning they alert the investor to opportunities that can be then chosen to be acted upon by the investor.
While there are many instances of profitable use of forex robots, scammers take advantage of the complexity of the investment and the interest of people who may not be sophisticated, knowledgeable investors to lure them into scam forex robots. The key is doing your research and understanding the underlying investments and the risks involved.
The bottom line is that Bernie Madoff was right about one thing. No one should ever invest in anything without totally understanding the investment and the inherent risks. All investment decisions should be made only after being properly informed. You may want to check out the SEC’s investor education website at www.investor.gov.
Before investing with anyone, you should also investigate the person offering to sell you the investment with FINRA’s Central Registration Depository. http://www.finra.org/industry/crd This will tell you if the broker is licensed and if there have been disciplinary procedures against him or her. You can also check with your own state’s securities regulation office for similar information. Many investment advisers will not be required to register with the SEC, but are required to register with your individual state securities regulators. You can find your state’s agency by going to the website of the North American Securities Administrators Association.http://www.nasaa.org/2709/how-to-check-out-your-broker-or-investment-adviser/
Here is a link to an article with much helpful information about forex robots. https://learnbonds.com/forex-trading/robots
For those of you receiving the Scam of the day through an email, I just want to remind you that if you want to see the ever increasing list of Coronavirus scams go to the first page of the http://www.scamicide.com website and click on the tab at the top of the page that indicates “Coronavirus Scams.” Scamicide has been cited by the New York Times as one of three top sources for information about Coronavirus related scams.