One of the most common questions when a trader first comes to Forex trading is; “is Forex trading legit or just one big scam?”.
That is not surprising because the thought of being able to make money with a simple click of a button seems to good to be true.
In this post we look at if Forex trading is legit and the scams you need to avoid.
Is Forex Trading a Scam?
Forex trading and the foreign exchange market is a legitimate market and is not a scam.
With that being said just like any market or business, there are endless amounts of scams and scammers looking to take advantage of those trading Forex.
Without the Forex market it would be impossible for you to exchange currencies. Companies could not import or export goods to and from other countries and you could not go on holidays to other countries because you would not be able to exchange currencies.
Traders use the Foreign exchange market to speculate on the prices of these currencies and make a profit from prices going up and down. Whilst there are many companies and traders that make a lot of money trading in the Forex market, there are also a lot of scammers looking to take advantage.
These scams come in all shapes and forms such as dodgy brokers ripping off traders, scammers offering shady educational products or other snake oil salesmen offering Ponzi investment schemes.
Is Forex Trading Legitimate?
The Foreign exchange market is by far and away the biggest market in the world with a daily turnover that exceeds five trillion dollars. This is a market that absolutely dwarfs any other market by a long, long way.
No stock market in the world even comes close to trading in the sorts of volume that the Forex market does.
Everyone from banks, large corporations, right through to individuals exchange currency.
You exchange currency when you go on holidays and big companies exchange it when they import or export their products.
Whilst the Forex market itself is legitimate, there are definitely a lot of scammers you should be wary of if you are thinking about becoming a trader.
How to Become Profitable Trading Forex?
The best way to become a profitable and successful Forex trader is to learn from the best and get yourself some great education.
There is a lot of trading education on the internet these days in the form of posts and YouTube videos with most of it being rubbish.
As a new trader you will find yourself overwhelmed with everything you need to learn and the thousands of different trading strategies.
There is no need to think you have to learn every strategy to become a successful trader. Find a strategy or system that suits you, download a set of free demo / virtual charts and then master it so you can make money with it.