This short article in the WSJ talks about the Forex trading company FXCM. The company believes that about 70% of clients lose money, and to be honest I’m surprised the number is not higher. While regulators seem to be standing with pitchforks outside of banks I’m amazed at the lack of investor protection in relation to commodities, futures, and Forex. There are firms in which 90% of traders lose money, that serve no value to society whatsoever except as a means to gambling. I don’t have any problem with people gambling if that is their desire, but I do think that firms that have this sort of track record for clients should be labeled as a type of gambling, so that clients don’t get misled into thinking that they are actually “investors.”
INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.