If you have ever researched all over the internet and especially on forums to find the answer to the question is Forex a scam, you are bound to be aware of the rumors that Forex is a real scam in the financial market. But the answer is somewhere in the halfway between negative and extremely laudable opinions.
In this article, we will analyze the various rumors regarding Forex and tell you what the real risk of the forex market is and how to be prepared for them.
Is Forex a scam and what makes people think so
When you look at the different discussions concerning the forex market, you can quickly see that the people who claim that Forex is a real scam are usually the people who have lost a considerable amount of money. But you must also know that these losses are not inevitable. You should know that if this were the case, people would no longer use Forex as often and, above all, would not continue to do so.
The main reason people say Forex is a scam is that brokers offer them what is called leverage. Indeed, these effects give the chance to multiply your money, provided you do good research, and pass through forex training. Otherwise, the risk of losses may rise. But it is necessary to go through learning and practice with a demo account if you want to make money on Forex.
On the other hand, the various criticisms concerning the Forex often come from those who follow the brokers’ instructions to the letter without carrying out research or studies on the current real market.
Therefore, it is totally false to believe that Forex is a real scam, as it allows you to make profits and even make a lot of money. But to be able to do this, it will take logic and good thinking.
How does Forex work and what advice should you follow?
To be able to make money with Forex, you are going to need to be up to date on business and politics. Indeed, luck will not help you at all. You should also know that the value of the currency changes with investors’ increase in that specific currency. The tips to follow to make money with Forex are:
- Find a good money management method,
- Preparation of a real effective strategy,
- Prepare and learn the right instructions and risks on free platforms,
- Stay up to date with all the latest economic news and currency developments.
Choose your Forex broker carefully and avoid Forex fraud
The Forex broker is your best partner if you want to become successful on Forex. The financial intermediary who allows you to buy and sell assets is necessary for every Forex trader, especially beginners.
Traders and brokers are not opposed. The broker provides a trading platform, tools, graphical analysis software, educational materials, which allow the trader to position themselves effectively on the financial markets.
But, which broker to choose when you want to become a Forex trader? First, it is particularly important to choose a reputable one. Check the reputation and seriousness of your future potential brokers. To do this, you can help yourself by reading forex brokerage reviews or consulting the list of authorized investment service providers for your country.
Choose a Forex broker who will provide you with suitable tools. These tools are real-time prices, technical analysis tools, customer service, training, etc.
Finally, you must take fees and commissions into account when choosing your broker. Compare the transaction costs offered by different brokers, and possibly the size of the spread.