Regulatory Alerts2018-10-19
Online Retail Foreign Exchange (Forex) Trading
The Securities and Exchange Commission (SEC) issued this public notice to clarify that online retail forex trading remains unregulated and subject to potential abuse. Participants must engage in this leveraged investment activity at their own risk until the regulator establishes a formal oversight framework. The advisory explicitly warns investors that current market practices lack regulatory safeguards.
The attention of the Securities and Exchange Commission (SEC) has been drawn to the increased advertisements in electronic and other media soliciting investors to engage in leveraged online retail forex trading. The public is hereby advised that online retail forex trading is currently unregulated and consequently may be subject to abuse. Until a framework for regulation of online retail forex trading is developed by the SEC, any person participating or engaged in such investment activity does so at his or her own risk. SIGNED MANAGEMENT