In forex trading, a lot of discipline to follow the rules and not be blinded by prospects of returns is what is required to get through to the promised land.

Of course, most people who do not make it will simply dismiss their inadequacies as being a result of the scam nature of the forex market when in truth these loser traders are not adequately skilled to trade forex. Another reason why some believe that forex trading is a scam has to do with the way in which it is marketed to the public.

There are literally thousands of forex brokers scattered across the globe. With so many brokers competing with themselves for prospective clients from around the world, recruiting and retaining forex traders has almost become a life-and-death competition among brokers. These deceptive marketing campaigns end up painting a false picture of what forex trading is in the minds of intending forex traders, and blunts their perception of the amount of work involved in becoming a successful trader.

Another reason why forex trading is viewed as a scam has to do with the fear factor that regulators have unwittingly succeeded in generating within the minds of retail traders. Regulation of the forex market is important, and it would be impossible to trade safely without it. Regulation serves to protect the end-users from unscrupulous practices of brokers and other service providers within the forex market.

But when the regulation of the market becomes too strangulating and starts to work against the well-being of those it is intended to protect, then it becomes a problem. This is what regulation in some jurisdictions has become, and the traders are not the only ones being affected. There is virtually no profession or vocation in this world where there is no element of risk.

However, you do not see as many disclaimers or warnings about the downsides of these professions being shoved down the throats of those who intend to study to become professionals in those areas.

For instance, those intending to become medical doctors do not have all the downsides of the profession thrown in their faces, or else there would be far fewer doctors practicing today. Nobody will tell an intending doctor that a needlestick injury could deliver a deadly blood-borne virus into the blood, and nobody goes telling them that dangerous viruses like the coronavirus or the Ebola virus are things they could contend with down the road in their careers.

In the same vein, trainee pilots are not always bombarded with information about all the possible things that could go wrong when they are flying a plane at 30, meters above sea level. So one begins to wonder why regulators in some jurisdictions decide to use scaremongering as a means of risk reduction among retail clients of the brokers they regulate. Regulators in some of the forex trading jurisdictions require brokers to always put disclaimers on their sites about how risky the forex market is, what percentage of traders lose money, and all that kind of stuff.

These undue disclaimers make it look as if retail forex trading is a taboo area that should not be touched at all or should only be touch with a really long spoon. Yet institutional traders are not given such disclaimers. Indeed, the recent faceoff between institutional and retail traders over the shares of GameStop and AMC has led some to suggest that regulators are taking sides with the institutional traders and helping them make money off the retail traders.

There is nothing illegitimate about forex trading. In the first instance, forex trading is simply the practice of exchanging one currency for another. While the aim is to make profit from the exchange rate differentials that occur within a time frame, it is possible to make losses if your analysis is wrong. For instance, it is possible to buy a product with the intention of reselling it for a profit, but if prices fall, then a loss will be made. People make losses from other businesses too.

You can buy a house today hoping to resell it at a higher price, but you can make losses if the prices in the housing market collapse.

You can plant crops to make a profit by selling them on harvest, but a collapse in crop prices could hurt your chances of making a profit. Does making losses in agricultural commodities or in trying to flip a house make the agribusiness or housing markets scam markets? Certainly not. Forex trading is not a scam. As someone who has traded forex made money from it, used the proceeds of forex trading to live life with better quality, and acquire some of the trappings of life that extra money can bring, I can categorically tell you that forex trading is not a scam.

Have I lost money in forex? You bet. Every forex trader has lost money at some point in time or the other, but does that make forex trading a scam?

Far from it. Are there scams in forex? Yes, there are. Are there scammers in the forex market? You can be sure that they exist because wherever there is money, it attracts the good guys and scammers as well. For example, you can convert one type of currency, such as US dollars, into another, like Euros. All Forex trades are expressed as a pair of two different national currencies being exchanged. Currency prices in Forex are driven by supply and demand, as well as other global factors, such as economic growth and political climate.

The Forex market is a legitimate market, in which banks, financial institutions, and individuals trade currencies with the goal of making profits. This means that for someone to make money on a trade, someone else has to lose money. Experienced traders are sometimes able to do quite well trading in Forex, but new traders should be aware of the different Forex trading scams out there or they can end up losing all their funds in the Forex market.

Though there are legitimate signal sellers with good information that can make you money, there are also scammers who sell bad investment advice, thus losing you whatever fee you pay them plus, most probably, a bunch of money on bad investments. These scam signal sellers often load up fraudulent sites with fake Forex trading reviews to gain your trust and trick you into paying for their services. HYIPs, also known as Forex trading systems or education courses, are a type of Forex scam in which the perpetrators make too-good-to-be-true promises about how much money you can make trading Forex — if you just sign up for their investment program.

In reality, once you sign up for such a program, the focus is almost always on recruiting more people to join it so the scammers make more sign-up fees , instead of actually on investing. Forex bid manipulation scams are run by fraudulent brokers who manipulate the bid-ask spread on computers to make themselves more money on trades they facilitate.

Though less common than they used to be, you can still spot these scams by looking out for spreads of pips, instead of the normal Forex trading software scams are a type of signal seller scams in which the fraudsters sell you trading bot software and claim that it will provide you with exclusive information that will make you a bunch of money.

As with most signal seller scams, they earn your trust through fake reviews of the Forex trading software. Though you might actually get access to some type of signal seller bot, they are most likely very rudimentary and should not be trusted for legitimate trading advice.

Scammers sometimes pose as investment account managers, claiming that they can earn you huge returns on investments if you let them take control of your funds. The reality is that they just spend it on themselves, often spending exorbitant sums on personal luxury items.

Then, when you ask to get your money back, they will probably make up some complex story about how you lost it on a trade. Ponzi and pyramid Forex trading scams involve someone promising you a big ROI for a small up-front payment. After you agree, you usually see a small return on your investment, just enough to get you to trust the people running the pyramid scheme. Then, they scammers pressure you to get friends and family members to sign up for the trading scheme, offering you commissions for every person you recruit.

The more people join, the more money gets filtered up the pyramid to the people at the top. So, for example, if you use a credit card to pay a scam signal seller or to sign up for a scam investment program, you may be able to simply get the charges reversed by disputing them with your financial institution. These companies have experience with getting chargebacks approved for thousands of clients just like you, and know how to present the evidence in the best way to get your dispute approved.

Home Black List Reviews About Us Blog Contact Us. Is Forex Trading Legit?

Brokers have been accused of numerous offences by their clients. One question that everyone asks is: Is Forex trading legit? It is a legitimate and real business that can generate profits. Forex trading is regulated by several governments and independent bodies worldwide.

Several regulators have also set standards that brokers must follow in their jurisdictions. Local people are part of the trading community as long as they exchange one currency for another in anticipation of a price change. However, if you are new to Forex trading, you might find some of the options available intimidating. Stocks, bonds, and treasuries-they all seem to be in a different and complex world. Most of us do not deal with it daily. Every one of us understands a commodity: money.

You already have the tools in your hands. All you need to do is recognize and enhance your trading skills to trade the Forex market. Promoters of forex signals , e-courses and trading products are common in the industry.

Marketing by these individuals is often aggressive, unethical and often fraudulent. Trading accounts that can double on a portfolio every month is a common misconception among traders. Investing in this way is a bad idea, and many people lose their money when they think like this. Because of the internet and electronic trading, investors can now access an increasing number of markets. Investing and trading have been made possible on a global scale, thanks to it.

Traders can trade stocks, Forex, or futures contracts based on risk tolerance, convenience, or account size.

Brokers must be members of a regulatory body and obtain a license. By being well-trained and knowing what to expect, stockbrokers and forex brokers can help traders trade more effectively and lose less money.

Among the variety of online brokers available, you can select one that meets your needs and requirements. You must decide whether you want to be an active or passive trader. The number of brokerage fees and the amount of risk you are willing to take must also be considered. A new trader should consider the following factors when choosing an online broker.

It can be complicated to choose a forex broker. Before making a decision, it is always a good idea to read reviews from others. Forex trading is comparable to investing in blue chips, indices, and industrial stocks. Understanding your risks and implementing strategies to avoid pitfalls can help you grow a portfolio reasonably. Nonetheless, even with the implementation of smart strategies, traders occasionally lose money.

It is common for the markets to be volatile, and there is a high chance of making mistakes. Smart investors are always alert and know what signals to look out for when trading. When it comes to investing, smart investors often choose the Forex market. In the Forex market, investors have access to several different trading options.

Profits can be earned instantly by experienced traders who take advantage of sudden increases in markets. Forex markets are open and continuous around the world. As a result, beginners can find experienced brokers willing to trade on their behalf and earn constant profits. Investors and traders do not need to worry with professional brokers about waiting for their investment to increase as they know the Forex market very well.

Moreover, the activity of the government highly influences the stock market; hence it is highly vulnerable. Fear also has many effects on the stock market as the traders can be fearful many times. The decrease in the confidence level leads to instability in the market.

This can be a downturn and loss factor for the investors. Big marketers and trading companies can make more scams. They are the reasons for manipulation on the stock market rather than on the Forex market. The reason is that the Forex market has volume, pure price trends without insider trading.

In trading stocks, more and more training and education about Forex are always beneficial. The Forex markets are prone to scams and deceitful just like the other markets. The Forex trading markets enable investors to invest effectively, thanks to the availability of many great books and the willingness of brokers to assist those who need it.

Losing money and sitting in silence is not necessary. The only person who succeeds is the one who is willing to spend time learning Forex trading strategies.

Forex is a legitimate business since it is regulated. Heinrich is a forex and CFD enthusiast with a passion for writing good informative quality content.

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Is Forex Trading Legit? Categories: Traders Blog Author: Heinrich Le Roux. Date: 3 Jan Trade Nation is a truly Multi-Regulated Forex and CFD broker with offices located globally. Sign up Sign up. Financial spread trading comes with a high risk of losing money rapidly due to leverage. You should consider whether you understand how spread trading works and whether you can afford to take the high risk of losing your money.

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Leverage Leverage in forex trading allows you to trade on larger amounts than you actually need to provide capital for. Is Forex Trading Legit or Just a Scam? If you do this, then you will be part of the 3 out of 4 unsuccessful traders. Forex trading is a complex business with lots of terminology—what follows are some of the essential elements of what makes up forex trading. There is virtually no profession or vocation in this world where there is no element of risk. So what's the reason for…. What follows is a description of the legitimacy or otherwise of the forex market by someone who has been involved in this market for more than a decade and continues to be involved in this market currently.

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