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The CFTC has witnessed a sharp rise in foreign currency trading scams in recent years and advises potential customers to be aware of the potential for fraud. Generally foreign currency futures and options contracts may be traded legally on an exchange or board of trade that has been approved by the CFTC. Even where currency trading does not occur on a Commission-approved exchange or board of trade, the trading can be conducted legally where, generally speaking, one or both parties to the trading is (or is a regulated affiliate of) a bank, insurance company, registered securities broker-dealer, futures commission merchant or other financial institution, or is an individual or entity with a high net worth. The CFTC has jurisdiction over forex firms and their transactions that do not fall into the categories of regulated entities outlined above and engage in foreign currency futures and options transactions with or for retail customers who do not have a high net worth. refer to links for further information

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