The forex industry is thriving in Israel. In a country of only 7 Million people, there are more than 20 active forex companies. With no regulation of this market, fraud is abundant.[citation needed] Even though the Israeli market is relatively small, the dimensions of fraudulent activity, and consequently the number of victims, have reached levels far beyond those in much larger countries like the U.S. According to current estimates there are tens of thousands of investors who fell victim to forex scams, and individual losses are up to 3.5 Millions NIS (about 1 Million US$).It is unclear why Israeli authorities ignore the forex industry. The agency who is supposed to regulate the futures market, which includes forex trading, is the Israel Securities Authority (“ISA”). But for reasons of jurisdictional confusion or sheer incompetence, for the many years that retail forex trading exists in Israel, the ISA has failed to take any action.Although it is possible for a few experts to successfully arbitrage the market for an unusually large return, this does not mean that a larger number could earn the same returns even given the same tools, techniques and data sources. This is because the arbitrages are essentially drawn from a pool of finite size; although information about how to capture arbitrages is a nonrival good, the arbitrages themselves are a rival good. (To draw an analogy, the total amount of buried treasure on an island is the same, regardless of how many treasure hunters have bought copies of the treasure map.)According to the Wall Street Journal
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