In the world of foreign exchange trading ("forex") forex signals are suggested orders for a currency pair. This suggestion may be made by an automated forex robot or by an expert forex analyst. As the value of a forex signal is time critical they are communicated by fast methods of electronic communication such as tweet, email, RSS, SMS or websites.

Any person considering subscribing to a forex signal service, or undertaking any form of currency trading should be aware of the risk of losses. Financial losses can occur in any financial transaction, but the potential high gains in forex trading have led to unscrupulous selling to investors who are not aware of all the risks.

Commodity futures and options markets in the US are federally regulated by the CFTC (Commodity Future Trading Commission). Advice from CFTC warns potential investors of the risks in forex trading, and the special care needed to understand risk and avoid fraud.

While currency trading is a legitimate and economically vital activity, a number of forms of trading have been touted to defraud the public. For example you are urged to be cautious when firms claim high profits with low risks: usually high profits are only possible if you are prepared to take high risks.

Also beware of claims that low investment can lead to high profits when you are trading on margin. The investor on margin may be liable for losses many times larger than their original small investment. If you do not 100% understand what trading on margin means then do not take the risk.

Fraudsters seem to particularly like people with retirement funds to invest. If you cannot afford to lose your retirement nest-egg then steer well clear of forex trading. Money lost to fraud will not be recovered.

Use extreme caution if transferring any funds on the internet. Companies often operate off-shore, outside CFTC jurisdiction. Websites may not display any indication of nationality. Do not invest if you have any doubts.

You should be sure to get the company's performance track records. A responsible firm will be happy to give information about past performance. Be cautious of firms and individuals who do not have this information, or who just give verbal assurances.

Get into contact with other forex traders. Check out any forums or websites where forex services are reviewed.

Look up the fraud page on the CFTC website. Is the firm or person registered with the NFA (National Futures Association) or the CFTC?