The authorities are closely monitoring the development of the Forex for individuals to avoid their aggressive lobbying by unauthorized sites.
A market of 4000 billion dollars a day can attract companies and malicious looking for easy money. The Financial Markets Authority (AMF) has issued its first alert on the exchange in 2004, but from 2010 the regulator has been a marked increase in suspicious practices (aggressive advertising …). “The foreign exchange market is particularly presented as a way to make quick money without much risk from trading, says Natalie Lemaire, director of investor relations of the AMF. This business approach is at odds with the total level of actual risk, very high. These products are intended for experienced investors who can assume potentially significant losses and are not suitable for very large target market covered by these ads, as a rule not informed of the risks of this type of market. “One of the fears of the authorities is to witness a proliferation of claims and litigation related to losses on currencies, even though the Paris stock exchange has lost 2.2 million individual shareholders in two years.
Forex brokers sometimes offer their investment services without having the slightest pleasure in France, a practice punishable by three years imprisonment and 375,000 euros fine. Worse, some of them may prove to be mere empty shells and disappear overnight after collecting money from investors. When they provide guaranteed returns in addition to one of the most difficult markets and more demanding of the financial world, all the lights turn red. Skill, “Most sites do not communicate directly Forex financial instruments but offer training services in the foreign exchange market.
This is a roundabout way to attract individuals and then direct them to other sites where they can conduct transactions,”says Natalie Lemaire. “We work closely with consumer groups and conducting awareness campaigns among the general public. “” Before any investment, individuals should check, particularly with AMF Epargne Info Service or the Website regulation that their provider is approved in France. Also get yourself well versed on the markets by understanding forex trading charts and ways in which the market operates. Trading foreign exchange is not suitable for everyone.