Is Forex a scam? It’s the question that bothers many tempted to start trading currency pairs. After digging a little deeper into the accusatory discussions, it quickly becomes apparent that the people who say Forex is a scam are the ones who have lost a lot of money.
But is losing such a common thing when trading Forex? If so, do you think so many people would continue trading on currencies and for a long time?
What makes the bad losers talk truthful is the risk associated with the leverage offered by most brokers. Indeed, if this leverage effect allows you to multiply your gains in case of good speculation, it also risks increasing losses.
On the other hand, Forex backbiters have mostly been content to choose the strongest leverage and blindly follow a broker’s advice regardless of the market’s reality.
So Forex is not a scam because it is possible to make money and even a lot of money. To do this, you still need to take the time to think things through and act sensibly. In the beginning, when you are just choosing your broker, tackle time to read brokerage reviews in order to make clever decisions.
Is How Forex Works
One irrefutable proof that Forex trading is not a scam is that trades’ results are materially checkable. When you think about it, there are as many chances of winning as of losing in Forex.
But to really trade smart, you have to pay attention to the different trend indicators. To do this, you have to follow economic and political news and study the graphics. Unfortunately, people who rely only on chance are quickly overwhelmed and can only lose money.
The evolution of currencies depends on the number of investors who trust them. This is proof that you have more chances of winning than losing on Forex since the value of a currency increases as more investors buy it. These buyers simply have to sell their position at the right time to win.
Some tips to avoid Forex scam
If you want to avoid one day finding yourself in the shoes of Forex scam victims, you need to follow a few simple rules.
- Manage your money well. To do this, avoid using too much leverage and keep a cool head, especially if you are starting out.
- Establish a real trading strategy or use an existing one that has proven itself.
- Practice on a trading platform offering a free demo account to fully understand the Forex market’s issues and risks before you jump in with your real money.
- Remember to closely follow currency news by subscribing, for example, to various newsletters or by reading daily analyzes of the latest events that you will find on this site, but also everywhere on the internet.
What To Do IF You Have Been Scammed
First of all, you must record all your transactions to ensure you have clear evidence in case you fall victim to Forex fraud. Your statement will not be enough if you don’t have clear evidence of fraudulent transactions and unsolicited tradings. If you have all of these, you can proceed to legal action and file a complaint with a local financial regulatory agency. First, try to settle everything with the broker. If they are not ready to settle in a civilized manner, you can call a regulatory agency to intervene. In most of the cases, defrauded customers are likely to win disputes.
So, if you are searching for the answer to the question is Forex a scam, we must say that in its very nature, Forex is an excellent opportunity to increase your capital. As all related to trades, forex involves risks. Remember, what is most likely to get you into the trap of a Forex scam is primarily your recklessness. If you take the time necessary to perform all needed checks, read forex brokerage reviews, you will no longer risk anything. However, it is essential to remain alert. Some scam techniques are incredibly sophisticated and much more difficult to spot. So you must always be on your guards.