No pot of gold at the end of the forex rainbow

Aaron Pressman

Here's an ancient investing insight that remains as true as ever: if it sounds too good to be true, it usually is. But a lot of folks are forgetting that maxim when it comes to an age-old scam that's showing new vitality. Regulators at the Commodity Futures Trading Commission in Washington, D.C. had to issue a warning this week on foreign currency trading scams. Some of these schemes, which promise huge returns with no risk using highly-leveraged strategies, are outright frauds. Others are mislabeled risky plays that benefit a broker. You don't have to go far to encounter one of these scams, either. Just type "forex" into a web search engine and mixed among the legitimate sites are offers promising 5000% returns or 170% a day and so on.

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