The foreign exchange market is a zero sum game in which there are many experienced well-capitalized professional traders (e.g. working for banks) who can devote their attention full time to trading. An inexperienced retail trader will have a significant information disadvantage compared to these traders.Retail traders are - almost by definition - undercapitalized. Thus they are subject to the problem of gambler's ruin.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”).
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