If you’re new to trading commodities, it’s important to learn how to avoid scams. These are particularly common in the world of options and futures. In order to prevent yourself from falling victim to a scam, you should first learn about the nature of these products. Many securities and commodity exchanges are regulated by the federal government, which is why it’s important to know how to identify fraudulent companies.
Unfortunately, commodity fraud is not a new problem. In the early days of the commodity market, bucket shops were common places to place bets on the current price of a commodity. The bets were not executed on exchanges, but rather placed on the bucket shop’s books. The bettors used their own resources to offset their bets, but eventually discovered that their funds were inadequate to cover the bets.
Another way to avoid a scam is to beware of bogus traders and brokers. These criminals usually use misleading tactics to defraud investors. They’ll try to convince you that your stock is worth more than it really is. The government will try to prove you’re guilty of a fraud, but they must prove it beyond a reasonable doubt. This is where the experience of a seasoned attorney can come in handy.