Why does people say that forex is scam?

Question

Kenneth · Accepted Answer

Forex is a legitimate commercial market where world currencies are traded. It is not a scam in itself. Without the Forex market, it would be difficult to trade the currencies needed to buy imports, sell exports, go on holidays, or do cross-border business.  However, with high leverage positions which, in theory, have the potential to make traders a lot of money and because there is no centralized/regulated exchange, scammers take advantage of the situation and the inexperienced traders desire to enter the market. Lack of transparency and unclear regulatory structures with insufficient oversight are the major problems with forex trading. However, some forex products are listed on exchanges with regulatory oversight. As well, there are legitimate brokers in the market.It is a zero-sum market, which means that for one trader to make a profit, another trader must make a loss. The Forex market does not add value on its own. As currency movements are largely determined by large well-funded institutions and banks that are better informed about the global market, an undercapitalized trader is always likely to lose. In this market, large institutions, and banks trade on a daily basis; to be able to make a significant profit requires a significant learning curve.Giambrone has discovered that scammers take advantage of the complexities of the Forex market, withholding important market information from their unsuspecting novice victims and claiming that their scheme, information, or software robot will bring them success.

Anthony · Answer

When trading forex, it's important to identify reliable and viable brokers and avoid those who aren't. Before depositing a large amount of capital with a broker, we must go through a series of steps to sort out the good brokers from the bad ones. Do your research, check for complaints, and read all the fine print on documents to avoid being duped by a shady broker. Ensure there are no complaints about not being able to withdraw funds. Contact the user if possible and ask about their experience.You can open a mini account or an account with a small amount of money if you are satisfied with your research on a particular broker. Make a withdrawal after trading it for a month or more. It should be relatively safe to deposit more funds if everything has gone well. Try to discuss your problems with the broker if you have any. Move on to posting a detailed account of your experience online so others can learn from your experience if that fails. If you feel that the broker scammed you, don't be afraid.

Vernon · Answer

Forex (foreign exchange) trading is a legitimate form of investment that involves buying and selling currencies to generate profit. However, there are some people who view forex trading as a scam. Here are a few reasons why this perception may exist:Lack of knowledge and understanding: Some people may view forex trading as a scam because they do not understand how it works. They may see the high risk involved and assume that it must be a fraudulent or illegitimate practice.Unscrupulous brokers: Unfortunately, there have been cases of unscrupulous brokers who have engaged in fraudulent behavior, such as manipulating trades or misusing client funds. These types of incidents can lead to a loss of trust in the industry as a whole.Unrealistic promises: Some companies or individuals may make unrealistic promises about the potential returns of forex trading, leading people to invest more money than they can afford to lose. When these promises do not come to fruition, investors may feel scammed.High volatility and risk: Forex trading involves a high degree of risk due to the volatility of currency markets. Some people may view this risk as inherently unfair or scam-like, especially if they have experienced significant losses.Overall, while forex trading is a legitimate investment strategy, there have been instances of fraud and misrepresentation within the industry. It is important for investors to carefully research any broker or company before investing their money and to only invest what they can afford to lose.

Why does people say that forex is scam?

6 Answer

6 Answer

Why does people say that forex is scam?

6 Answer

6 Answer

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