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 trading on margin will give high profits with low investment. When trading on margin the investor will risk losing much more than his original upfront investment. CFTC give this excellent piece of advice. Only trade on margin if you are 100% sure what it means.

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.

Be particularly careful if you transfer money via the internet. Often on-line forex companies are outside US jurisdiction. Often they do not display national identity on their website. If you have any doubts about where they are do not transfer money.

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.

Network with other forex traders. Look for reviews of forex services, and ask questions about forex signal services in on-line forums.

The CFTC have a fraud page on their website. Check this out. Also check if the company or individual is registered with the CFTC or the National Futures Association.