Investing in Foreign Currency Futures

in Futures

With the global market becoming more and more interconnected, investing in foreign currency futures can be a lucrative choice.  The foreign currency market is the largest market in the world, and is known for being fast paced and volatile. The industry has regulation here in the U.S., as well as government sites to inform potential investors of various scams.  Neutral sites fill similar needs, warning of some opportunities to be scams, others to be a great opportunity.  Assuming one finds a legitimate.

Commodity Futures Trading Commission

One of the most important of the government agencies in relation to foreign currency trading is the Commodity Futures Trading Commission (CFTC). The CFTC, under law has jurisdiction and authority to investigate and take legal action to close down a wide assortment of unregulated firms offering or selling foreign currency futures and options contracts to the general public.  It also has the power to investigate and prosecute foreign currency fraud occurring in its registered firms and their affiliates.

Office of the Comptroller of the Currency

Another important agency for foreign currency is The Office of the Comptroller of the Currency (OCC).  The OCC began in 1863 as a bureau of the U.S. Department of the Treasury.  OCC is the entity that charters, regulates, and supervises all national banks.  The OCC is located in Washington, D.C., with four additional district offices, plus an office in London to supervise the international activities of national banks.  It regulates national banks by “rules, legal interpretations, and corporate decisions concerning banking, bank investments, bank community development activities, and other aspects of bank operations” which national banks must follow.

OCC Objectives

  • Ensure the safety and soundness of the national banking system
  • Foster competition by allowing banks to offer new products and services
  • Improve the efficiency and effectiveness of OCC supervision, including reducing regulatory burden
  • Ensure fair and equal access to financial services for all Americans

The market for foreign currency trading is worldwide, with the exchange rate always available at one of the three main centers of trading—United Kingdom, United States, and Japan.

CME

The CME can also provide information into the foreign currency market that on understanding of foreign currency trading for profit, the risks, rewards, factors of concern as well as perspectives ranging from the Marco-environment to focuses on emerging markets.  CME Group also provides links to various articles by various authors on the subject.

Books

There are many books on the matter of foreign exchange futures, the risks, rewards, and what to watch out for from scams in the field.  A book for someone hoping to make a more informed decision would be ‘Foreign Currency Trading: From the Fundamentals to the Fine Points’ that can be found on Amazon.  For other books on the subject, one should visit the Library of Congress, and search its extensive library of books for one, there are enough to fit any specific point of interest one may have in the area of foreign exchanges.

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