Investor Newsletter

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July 29, 2021


Investor Protection

Understand Risks and Markets before Reacting to Internet Hype

Recent posts on online message boards and social media platforms have been cited as contributing to increased volatility in markets for certain commodities. Large numbers of individual speculators—traders who try to profit from short-term trades—rushed into commodity-backed exchange traded products, physical commodities such as gold and silver, commodity futures, and options contributing to brief but dramatic price swings. Read the CFTC's Investor Alert to learn what you should consider before jumping into any trade.

Information courtesy of the CFTC


Phishing, Smishing, and Vishing Scams

Phishing, smishing, and vishing are types of scams where a fraudster tries to trick individuals into providing sensitive personal or financial information by posing as an entity they know or trust, such as an investment firm or a bank. The main difference between these “ishing” scams is the method the fraudster uses to carry out the attack. To better understand these types of scams and how to ensure your investment, financial and personal information remains secure, read the SEC's Investor Alert.

Information courtesy of the SEC


CFTC/SEC Investor Alert: Funds Trading in Bitcoin Futures

Investors considering a fund with exposure to the Bitcoin futures market or underlying Bitcoin market should carefully weigh the potential risks and benefits of the investment. Among other things, investors should understand that positions in Bitcoin and Bitcoin futures contracts are highly speculative. To learn more about the volatility of Bitcoin and the Bitcoin futures market, as well as the lack of regulation in the underlying Bitcoin market, read the CFTC and SEC's Investor Alert.

Information courtesy of the CFTC and SEC


Investor Education

NFA’s Online Investor Resources

NFA offers a variety of online investor education materials intended to arm the public with the skills needed to protect themselves from fraud and safely participate in the derivatives markets. Investors can find the following educational materials, along with other information, on NFA’s website:

  • Futures Fundamentals—Access materials that explain the purpose of the derivatives industry and the role NFA plays in ensuring market integrity.
  • Webinars—View the latest free webinar hosted by the CFTC and NFA entitled, Investor Education: What to Know before Investing.
  • BASIC—Search a comprehensive database of CFTC registration, NFA membership, disciplinary and financial information regarding derivatives industry firms and salespeople.
  • Arbitration Services—Learn about NFA’s affordable and efficient arbitration program that helps customers and Members resolve futures-related and forex-related disputes.