Difference between revisions 169302196 and 170677038 on enwiki

{{Primarysources|date=December 2006}}
{{NPOV}}

{{Infobox_Company |
  company_name   = Forex Capital Markets |
  company_logo   = [[Image:Fxcm logo.gif|FXCM]]|
  company_type   = [[Private company|Private]]|
  company_slogan = |
(contracted; show full)  | language =
  | publisher =
  |date=June 19, 2005
  | url =http://www.nytimes.com/2005/06/19/business/yourmoney/19fore.html?_r=2&adxnnl=1&oref=slogin&adxnnlx=1191337503-g1yHfewhqPWye0XtI+Eq0A&oref=slogin 
  | accessdate =2007-10-30}}</ref>.


Even the
 U.S. government approved self-regulating body for the Fforeign Eexchange Mmarket, the National Futures Association, warns traders in a Forex Training presentation of the risk in trading currency. “As stated at the beginning of this program, off-exchange foreign currency trading carries a high level of risk and may not be suitable for all customers. The only funds that should ever be used to speculate in foreign currency trading, or any type of highly speculative investment, are funds that represent risk capital; in other words, funds you can afford to lose without affecting your financial situation. “⏎
<ref>[http://www.nfa.futures.org/forex_training/content/module5-1.htm][5]⏎
 NFA Forex Training, 5-1]</ref>. 100-1 leverage makes this type of trading especially risky[http://www.nfa.futures.org/forex_training/content/Module5-4.htm NFA Forex Traning, 5-7]</ref>.

[[Retail forex]] is controversial because the high degree of leverage available in the market leads most retail traders to lose money, and because of the existence of many [[forex scam]]s. Quoted in the [[Wall Street Journal]] regarding retail forex, (''Currency Markets Draw Speculation, Fraud'' July 26, 2005) "Even people running the trading shops warn clients against trying to time the market. 'If 15% of [[day traders]] are profitable,' says Drew Niv, chief executive of '''FXCM''', 'I'd be surprised.' " <ref name="WSJ">{{cite news 
  | last =Karmin 
  | first =Craig
  | coauthor = MICHAEL R. SESIT 
  | title =Currency Markets Draw Speculation, Fraud
  | work =[[The Wall Street Journal]]
  | pages =
  | language =
  | publisher =Dow Jones and Company
  |date=July 26, 2005
  | url =http://online.wsj.com/public/article/SB112233048975295402-NbzPFRn1JqQly3JoxqjuFM_9kn8_20060805.html
  | accessdate =2007-10-31}}</ref>

== References ==

<references/>

[http://www.nfa.futures.org/forex_training/content/module5-1.htm]

== External Links ==
*[http://www.fxcm.com FXCM]
*[http://www.dailyfx.com DailyFX]
*[http://www.nfa.futures.org/basicnet/Details.aspx?entityid=0308179 FXCM's NFA 'BASIC' Listing]
*[http://www.nfa.futures.org/basicnet/CaseInfo.aspx?entityid=0308179&type=reg NFA Regulatory Actions]