A recent investigation has revealed that a few of the U.S.’s most reputable futures exchanges are actually scams. While this type of investment is not illegal, it is unregulated, and it is not recommended for beginners. While many unregulated futures exchanges have been shut down due to fraud, others continue to operate, offering investors little protection against fraud. Luckily, there are several ways to avoid falling victim to a rip-off.
One of the most common scams in the futures trading business involves a company that promises to give you free training on the futures trading market. These companies advertise on Facebook, offering clients free training on commodities, foreign exchange, and futures trading. Some of these companies are based in the Philippines and operate in the US. Some of these scam companies have as many as a few thousand fans on Facebook. It may be difficult to find reliable information about these exchanges, but a few scams may be worth investigating.
Golden Global Growth were operating a futures exchange brokerage business, and their clients could invest in New Zealand, Taiwan, Indonesia, and Hong Kong. Clients were told that they could invest in the markets and that their investments would be safe because the companies would manage the money. However, the companies’ senior executives allegedly ran off with their client’s money, which meant they lost K100 million. Scam futures exchanges are a real concern for the futures trading industry, and this is why these firms are being investigated.