FOREX: AN EXTREME RISK
forex, fx, currency, investments
Colombian investors looked at ‘vanish’ thousands of dollars of electronic currency market.
An unexpected publicity received signature FIT Forex Investment Team AG, at the end of last year. “It’s the only representative office authorized in the country to promote the products and services of the international currency Forex market.” So it gave to know the Superintendency financial that issued the resolution respective the 9 of December of 2008, through which approved the opening of this office in Colombia as it reported different media of communication.
This advertisement is produced in full crisis of the pyramids that ended up splashing the market international of badges. Several illegal collecting were offering their customers large utilities because they supposedly invested in Forex, but which in reality had nothing to do with this business, as it could be later. Operated as pyramids disguised.
Why monitoring entities looked at appropriate time to clarify that so far the only firm that had requested permission to open a representative office was FIT Forex, with headquarters in Zurich, Switzerland.
However, in February this year it spread panic. Money could establish that the firm had suffered heavy losses in the business, which made many investors nervous.
“In December was given great visibility to the fact that they were only monitored by the Superintendence of financial, as announced in the press notices.” For this reason, some like me them trust our money. In my case $20,000 “, says one of the investors who lost more than 50% of their participation and that prefers to keep in reserve its name.
Sources say that FIT Forex has about 500 customers and that the amount of resources that have been entrusted to them amounts to some $100 million. In fact, it takes six years in the country promoting these services.
The President of the firm, Jairo Sánchez, explains that some dollar positions they took in February and libra-dolar (Forex transactions are carried out between currency pairs) thinking that they were going to go up and just went into a tailspin, fact that ‘paniquio’ more than one investor. He argues that several assimilated the coup and withdrew, while others were awaiting results in the longer term.
“The first thing we do is warn investors that it’s high-risk operations, that may have even lost all of the money and who do not have a guaranteed return monthly or yearly,” he says.
According to Sanchez, one of the positions that opened in euro-dollar made it to 1.30 (euro to US$ 1.30). “It was not the most advisable by the volatility of currencies, due to the economic crisis, but left open that position and the euro fell to levels of 1.24 and 1.25. If we had settled at that point the losses would have been higher. Today is 1.27 or 1.28. No currency falls or rises forever. If the euro continues to rise, most likely who stayed with us will recover their investment,”said.
Sanchez emphasized that the office in Colombia of FIT Forex Investment Team does not capture the public money. “The entire operation is conducted overseas. We do not handle a single dollar. The company in Switzerland is responsible for making operations and contracts, containing a statement of Declaration of risk that the investor should read then sign. The only legal regime allows us in Colombia to promote and advertise products and services offering the entity abroad”, says Sanchez.
The Financial Superintendent, Robert Borras, pointed out how the surveillance exercised by the entity has to do with that the firm complies with everything concerning fashion and carry out the promotion of services provided by the parent company abroad.
“One of the requirements of the Superintendency is advertising to explain clearly that it’s a high-risk business and so they have been doing so far. It is worth clarifying that operations that makes the firm abroad can not be monitored by this entity”, says the official.
However, Borrás confirmed that you due to what happened recently, the regulators are checking that the representative office continues to meet fully its functions for the promotion of a service that is not provided in Colombia, but also abroad.