On December 5, European Securities and Markets Authority (ESMA) issued an investor warning about foreign exchange (forex) trading. It warns about the risks involved in forex trading and the particular dangers of dealing with unauthorized or unregulated firms.

ESMA stated that issued the warning after an increase in unauthorized firms offering online forex transactions into certain European Union member states.

This is the first time that ESMA has issued an investor warning. To read EMSA’s warning, click here.