Consultants fear mis-selling as forex brokers discover new options
Foreign exchange brokers – which execute spot and forward currency trades with smaller businesses – are now also offering options-based structures to clients in the UK. Consultants say the trades they have seen are complex and worry about the potential for mis-selling. By Fiona Maxwell
The film Boiler Room, released in 2000, tells the story of pump-and-dump stock-broking practices at fictional firm JT Marlin, in New York. Its brokers lie to gullible investors, sell them shares in fictional or failed companies, and leave them to suffer the consequences.
It is a horrible depiction of the industry. Surprisingly, in the UK's foreign exchange broking sector, it is also used as an induction video for new recruits, according to James Ducker, a director at Benchmark Treasury Pricing
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