Foreign Currency Transactions

Foreign currency futures contracts may be legitimately traded either on a recognized futures exchange or in the "interbank market," which generally involves trading between large institutions such as banks and corporations. The interbank market does not typically include individual or retail customers.

Fraudulent currency trading firms often tell customers that their trading is done in the "interbank market." Be wary of any firm that claims that you can or should trade in the "interbank market" or that it can or will do so on your behalf. Your losses can be very large in a single day. Companies that tell you otherwise may well be engaged in illegal schemes. For additional information, see the Commodity Future Trading Commission’s warning on Foreign Currency Trading Frauds.