Forex: Home-based business review 

FOREX stands for foreign Exchange, and it is the practice of trading one currency for another. As governments, companies and individuals do business, monies change hands, hence foreign exchange.

The FOREX market is huge. According to David Krutz from the Financial Times Website (Published: October 9. 2006) " The foreign exchange market will have doubled in size in just three years next year, thanks to increased participation by fund managers and pension funds, says research out on Monday. Tower Group, a financial services research consultancy, said it expected total global average daily volumes on the FX market to exceed $3,000bn in 2007.

FX volumes, which rose from $1,770bn in 2004 to $2,000bn last year, were set to rise to $2,600bn this year and $3,600bn next year, as foreign exchange became accepted as an asset class in its own right according to  Tower Group . the average daily trading volume of US Treasury Bonds is $300 billion and the US stock market has an average daily volume of less than $10 billion. Ten years ago the Wall Street Journal estimated the daily trading volume in the forex market to be in excess of $1 trillion. Today that figure has grown to exceed $1.8 trillion a day.

Pros and Cons  Forex is a legitimate money making opportunity, but like any other industry, it has been infiltrated by scam artistes. The United States Commodity Futures Trading Commission (CFTC), the federal agency that regulates commodity futures and options markets in the United States, warns consumers to take special care to protect themselves from the various kinds of frauds being perpetrated in today's financial markets, including "foreign currency trading." The encourage would be investors to be vigilant when approaching any individual or company that promises too much.

Here is their warning list:-

1.   Stay away from opportunities that seem too good to be true

Always remember that there is no such thing as a "free lunch."

2.   Avoid any company that predicts or guarantees large profits Be extremely wary of companies that guarantee profits, or that tout extremely high performance. In many cases, those claims are false.

3.   Stay Away From Companies That Promise Little or No Financial Risk

4.   Don't Trade on Margin Unless You Understand What It Means

Margin trading can make you responsible for losses that greatly exceed the dollar amount you deposited.

5.   Question Firms That Claim To Trade in the "Interbank Market"

6.   Be Wary of Sending or Transferring Cash on the Internet, By Mail or Otherwise

7.   Be Sure You Get the Company's Performance Track Record

8.   Don't Deal With Anyone Who Won't Give You Their Background

Source:- http://en.wikipedia.org/wiki/Forex_scams

Recommended?    BeWare: Several arrests have been made by the  CFTC of fraudulent operator defrauding unsuspecting investors.