FBS, Why people think Forex is SCAM? Is it a myth or truth?
Is it really possible to make profits in Forex market? Are there scammers in Forex market?
Global FX brokerage firm, FBS has just published a great article about “knowledge”.
This article is originally referred from FBS Blog.
- Is Forex trading really a game?
- Forex is everywhere in our daily-life
- Why people think “Forex” is scam business?
- Why people can’t make profits in Forex trading?
- What is the merit of trading FX instead of stocks, bonds or commodities?
Is Forex trading really a game?
Some people still think Forex Market is a scam.
Of course, it sounds ridiculous for traders and people with a degree in finance, but other people often take this statement seriously.
Simple lack of understanding of economy may result in creating myths and lies about Forex, which unfortunately can discourage a lot of people with high potential.
“Forex is simply the market of the currencies. It is similar to real estate or auto market. You can’t say the auto market is a scam.”
Forex is everywhere in our daily-life
Forex is simply a market, it is used by governments, banks, companies, and simple people.
Have you ever traveled somewhere? If you have, you should know that you are going to need some foreign currency on your trip, which you can buy from your local bank (and most likely not at the best price).
Do you want to buy some foreign products?
You can do that because a business owner bought foreign currency to buy that product and then sell it to you at a higher price. No one, of course, would call this businessman Forex scammer.
Everybody uses Forex in daily life, but not everyone gets to profit from it.
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Why people think “Forex” is scam business?
Why is it considered to be a scam then?
The answer is simple: they don’t understand it.
People who come to the Market without any knowledge or preparation and expect to become millionaires in just one day are not very good at coping with the results of their own actions.
They simply throw money at their broker and expect to get rich in one click, and when they fail, they blame the market.
“Markets are never wrong – opinions often are.”
According to the Bank for International Settlements, trading in foreign exchange markets averaged $5.1 trillion per day in April 2016.
The fact that some people cannot make money through Forex trading doesn’t mean Forex is a scam – there are plenty of Forex traders who made it their profession for life.
“Most people give up long before they get to this point. They blow through their first trading account and get discouraged, think their brokers are sabotaging them”
Why people can’t make profits in Forex trading?
So, if Forex trading is legit, why people give it up?
The answer is: they don’t get prepared, they lose control of their emotions, they can’t stick with a trading plan long enough, and they don’t educate themselves.
As a result, they lose and blame the market. Just as with any other business.
But if you are prepared, Forex can be your source of financial freedom.
What is the merit of trading FX instead of stocks, bonds or commodities?
There are many advantages while trading Forex online today.
As the technology develops, online trading is becoming more convenient and easy too.
Here are 13 points that makes FX trading special, differentiate from other financial markets.
- Retail traders from anywhere in the world can trade with simply an internet connection and a mobile device.
- Advances in technology create fast connectivity and low latency.
- There is an ever increasing range of tradable instruments including commodities, indices and digital currencies.
- Low transaction costs in FX trading.
- Extremely high market liquidity.
- Low barriers to entry.
- FX is not correlated with other asset classes, and can help diversify a portfolio.
- The ability to trade on a large investment with a small amount of margin, with leverage.
- FX is extremely difficult to manipulate because of the large size of the market.
- The Forex market doesn’t sleep. It operates 24 hours a day, five days per week.
- It is the world’s largest market, which means that there is always somebody on the other end of your trades.
- It is decentralised, meaning that there is not one government, institution or central bank controlling it.
- There is always something going up and down unlike other markets where everything moves together.
Original Source: FBS Blog
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