forex

A forex scam is any trading scheme used to defraud individual traders by convincing them that they can expect to gain a high profit by trading in the foreign exchange market. Currency trading "has become the fraud du jour," according to Michael Dunn of the U.S. Commodity Futures Trading Commission. ^[1] But "the market has long been plagued by swindlers preying on the gullible," according to the New York Times ^[2]. "The average individual foreign-exchange-trading victim loses about $15,000, according to CFTC records" according to The Wall Street Journal. ^[3]. The North American Securities Administrators Association says that "off-exchange forex trading by retail investors is at best extremely risky, and at worst, outright fraud." ^[4]

“In a typical case, investors may be promised tens of thousands of dollars in profits in just a few weeks or months, with an initial investment of only $5,000. Often, the investor’s money is never actually placed in the market through a legitimate dealer, but simply diverted – stolen – for the personal benefit of the con artists.”^[5]

In August, 2008 the CFTC set up a special task force to deal with growing foreign exchange fraud.”^[6]

The forex market is a zero-sum game^[7] , meaning that whatever one trader gains, another loses, except that brokerage commissions and other transaction costs are subtracted from the results of all traders, technically making forex a "negative-sum" game.

These scams might include churning of customer accounts for the purpose of generating commissions, selling software that is supposed to guide the customer to large profits, ^[8] improperly managed "managed accounts", ^[9] false advertising, ^[10] Ponzi schemes and outright fraud. ^{[4] [11]} It also refers to any retail forex broker who indicates that trading foreign exchange is a low risk, high profit investment. ^[12]

The U.S. Commodity Futures Trading Commission (CFTC), which loosely regulates the foreign exchange market in the United States, has noted an increase in the amount of unscrupulous activity in the non-bank foreign exchange industry.^[13]

An official of the National Futures Association was quoted ^[14] as saying, "Retail forex trading has increased dramatically over the past few years. Unfortunately, the amount of forex fraud has also increased dramatically..." Between 2001 and 2006 the U.S. Commodity Futures Trading Commission has prosecuted more than 80 cases involving the defrauding of more than 23,000 customers who lost $350 million. From 2001 to 2007, about 26,000 people lost $460 million in forex frauds. ^[1] CNN quoted Godfried De Vidts, President of the Financial Markets Association, a European body, as saying, "Banks have a duty to protect their customers and they should make sure customers understand what they are doing. Now if people go online, on non-bank portals, how is this control being done?"

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A banker or bank is a financial institution whose primary activity is to act as a payment agent for customers, and to borrow, lend, and, in all modern banking systems, create money.
The first modern bank was founded in Italy in Genoa in 1406, its name was Banco di San Giorgio (Bank of St. George).
Many other financial activities were added over time. For example banks are important players in financial markets and offer financial services such as investment funds. In some countries such as Germany, banks are the primary owners of industrial corporations while in other countries such as the United States banks are prohibited from owning non-financial companies. In Japan, banks are usually the nexus of cross share holding entity known as zaibatsu. In France "Bancassurance" is highly present, as most banks offer insurance services (and now real estate services) to their clients.

Govt presents Rs 73b advance expenditure bill as interim budget

Finance minister Dr Ram Sharan Mahat presented an advance expenditure bill to act as an interim budget of Rs 73.5 billion for the new fiscal year 2065-66, which will be replaced by a full-fledged budget to be presented by new government later.

Finance Minister Dr. Ram Sharan Mahat (File Photo)

The interim arrangement about the budget allowing the government to collect revenue and spend its resources was presented at the constituent assembly Monday. The full-fledged budget could not be presented due to delay in formation of new government.

The tax plans, and economic policies of the budget presented last year will get continuity until a complete budget is presented by the new government.

According to Minister Mahat, current fiscal year recorded 5.6 percent GDP growth – highest in the last seven years. Agriculture sector registered 5.65 percent growth while non-agriculture sector registered 5.57 percent growth.

The gross domestic saving increased to 11.5 percent, up from 9.7 percent last year. The government hopes that revenue generation by the end of this fiscal year would increase by 22 percent more than initial estimation.

Likewise, the foreign assistance has substantially increased from Rs 37.2 billion in the last fiscal year to Rs 57.6 billion in the current fiscal year. The government debt, during this period, has decreased from Rs 329 billion to 324 billion.

During the current financial year, the general expenditure of the government increased by 24 percent and the capital expenditure by 31.6 percent.

Dr Mahat also expressed hope that the new government will take into consideration the demand raised by the government employees for salary increment.

The new government, possibly led by CPN (Maoist), will adjust the expenditure made during this period while tabling the full-fledged financial bill.