Resources, glossary and where to check the facts yourself
Real official sources first, common mistakes people make, and terms defined in plain English.
- CFTC — Commodity Futures Trading Commission — The US federal regulator for forex and futures markets; publishes investor alerts and enforcement actions worth reading directly.
- NFA — National Futures Association BASIC registry — Free, public tool to check whether a broker is actually registered to serve US retail forex clients.
- CFTC Office of Customer Education and Outreach — Free investor education materials, including specific guidance on forex fraud and how to file a complaint.
This is a cross-border topic — where a rule depends on where you live or are tax-resident, the country is named on the page.
Checklists you can work through
Before you respond to any forex-related pitch
- Check the broker or platform's registration on the NFA's BASIC registry, if you're a US resident
- Search the specific company or individual's name alongside 'scam' or 'complaint'
- Ask directly whether any promised or fixed return is being implied or promised
- Confirm whether the product involves CFDs, which are not legal for US retail clients
- Never pay a fee to release a withdrawal of your own money
- Give yourself at least 48 hours before responding to anything presented as time-limited
Before you'd ever consider opening any trading account
- Read the broker's actual, current retail loss disclosure in full
- Work out what a 2% adverse price move would cost you at the leverage being offered
- Confirm the broker's registration and regulator directly, not through the broker's own claim
- List every fee, including the spread, not just the account minimum
- Ask what happens to your position, specifically, during a fast market move
- Confirm client funds are held in segregated accounts, separate from the broker's own funds
Common mistakes people make before even opening an account
Treating a demo account's results as a preview of real results
A demo account carries no real financial risk or emotional weight, which changes trading behavior in ways that don't transfer to a live, leveraged account. Treat demo performance as a way to learn the mechanics, not a forecast.
Reading a broker's marketing before its risk disclosure
Go straight to the broker's required retail loss disclosure and its NFA registration status before reading any marketing material — marketing is written to persuade; the disclosure is written to inform.
Assuming a slick app or website implies regulation
Design quality has no relationship to regulatory status. Check the NFA's BASIC registry directly rather than inferring legitimacy from how professional a platform looks.
Underestimating what a 'small' leverage ratio actually multiplies
Even 10:1 or 20:1 leverage multiplies an ordinary daily price move into a meaningfully larger account impact. Work through the leverage guide's math with your own numbers before assuming any ratio is 'safe.'
Confusing a signal service's claimed track record with a verified one
Ask specifically whether a claimed track record is independently, third-party audited. A screenshot the seller controls is not verification.
Not checking whether a product being offered is actually a CFD
If you're a US resident, ask directly whether what's being offered is a CFD — they are not legal for US retail clients, and the answer alone can end the conversation.
Glossary
The words that get used as if everyone already knows them.
Pip
The standard unit for measuring a price move in a currency pair, usually the fourth decimal place.
Spread
The gap between the buy price and sell price of a currency pair, and a real cost built into every trade.
Leverage
Using borrowed exposure to control a currency position larger than your actual deposit — it multiplies gains and losses equally.
Margin
The amount of your own money required to open and maintain a leveraged position.
Margin call
A broker's demand for more funds when losses erode your margin below a required level.
Spot forex
A direct currency exchange settled almost immediately, generally within two business days.
Forex futures
A standardized contract to exchange currency at a set price on a future date, traded on a regulated exchange.
CFD (contract for difference)
A contract to exchange the price difference of a currency pair without ever holding the underlying currency — not legal for US retail clients.
NFA (National Futures Association)
The US self-regulatory body that registers and supervises brokers serving US retail forex clients.
CFTC (Commodity Futures Trading Commission)
The US federal agency with regulatory authority over derivatives markets, including retail forex.
Signal service
A paid subscription offering specific buy or sell recommendations; a common vehicle for forex-related fraud.
Base and quote currency
In a currency pair like EUR/USD, the base currency (EUR) is what's being priced, and the quote currency (USD) is what it's priced in.