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SCB warns against Forex multi-level marketing scam

The Securities Commission of The Bahamas (SCB) yesterday warned Bahamians against engaging in a risky, multi-level marketing scam which has become popular locally in recent months.

In a notice, the SCB stated it is very concerned that members of the public are being solicited to join the foreign exchange market, or Forex.

According to its website, trading on Forex involves “the buying of one currency and simultaneous selling of another” in which “traders attempt to profit by buying and selling currencies by actively speculating on the direction currencies are likely to take in the future”.

“There are various programs and/or schemes which are becoming increasingly popular in The Bahamas, as they are reportedly offering Forex training to the general public so that purportedly persons can ultimately engage in trading for themselves,” the SCB revealed yesterday.

“These entities are not in any way licensed or sanctioned by the commission. Individuals should be aware that Forex trading is a highly speculative activity that carries with it a significantly increased risk of financial loss. Those persons who engage in Forex trading solely for themselves should be aware that losses can go well beyond the amount of their initial investment.”

The SCB also noted that it is an offense for persons to trade in Forex for and on behalf of other persons without being registered by the commission.

“In light of the above mentioned, the commission is very concerned and advises the public to be aware of these unregistered individuals, or entities that are operating in or from within The Bahamas,” the notice states.

“Further, the commission urges the public not to engage, or continue any dealings, with these entities or related persons.”

Forex.com is a trading name of GAIN Global Markets Inc., which is authorized and regulated by the Cayman Islands Monetary Authority under the Securities Investment Business Law of the Cayman Islands, according to its website.

Bahamians are being urged to contact the SCB with any complaints regarding their investments in the scam.

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