Once the decision is made to start trading foreign exchange, the next step is to select a broker. So what does a broker do? Fundamentally, a forex broker buys & sells orders on the traders behalf

There's plenty of companies claiming to have a foolproof way of making funds with three method or another & while a quantity of those systems have a basis in fact, even the most well-researched, well developed method cannot take in to account the vagaries of the marketplace.

The Division of Clearing & Intermediary Oversight (DCIO) recently released an additional advisory aimed at protecting consumers from this ever growing problem, but the CTFC has some basic, solid advice regarding becoming involved in Forex trading

As a general rule, it is best to keep away from any companies claiming that Forex trading is easy, guarantees results or encourages you to make tiny deposits & use high leverages. Regardless of how well educated you are, investing a tiny sum in FX trading is likely to finish in losses. Some recent scammers who have been caught by the CTFC include:

• Lake Shore Asset Management

• Lake Dow & Ty Edwards

• Ben Ouyang

• Emerald Worldwide Holdings, Inc.

• Foreign Fund (First Bank)

• Equity Financial, Shasta, or Tech Traders

• IBS/IMC

• Kevin J. Steele

• Nawab Ali Khan Ali

• Sun Platinum

• Worldwide Commodity CorporationGraystone Browne Financial

• Sterling Trading Group, Inc.

• STG Global Trading or QIX, Inc.

• Universal FX, Inc.

Seven of the most disturbing recent trends is the amount of Forex sites claiming to be helping traders when in fact the opposite is true. Forexbastards.com claim they are there to help the trader distinguish the "good guys from the bastards." Here is a video clip uploaded by Nick B, demonstrating how effective they are.

There's case reports available from the CTFC web-site which are updated on a regular basis. In the meantime, if you have lost money in dealings with any of these companies or individuals, there is a contact page at CTFC.