Is forex legit ?
Is forex legit?
The Forex market is a legitimate trading market where the world’s 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 centralised/regulated exchange, scammers take advantage of the situation and the inexperienced traders desire to enter the market.
The Forex market is a ‘zero-sum’ market, which means that for one trader to make a profit, another trader will need to make a loss. The Forex market does not itself add value to the market. Because a lot of the currency movements are directed by large well-financed corporate institutions and banks, who are better informed about the market as a whole, the undercapitalised trader is always likely to lose. Institutions and large banks trade in Forex daily; to make a significant profit in this market takes a considerable learning curve. But is forex legit?
When researching a potential forex broker, traders must learn to separate fact from fiction. For instance, faced with all sorts of forums posts, articles, and disgruntled comments about a broker, we could assume that all traders fail and never make a profit. The traders that fail to make profits then post content online that blames the broker for their own failed strategies.
It’s why with ThirdBrainFx, we provide accurate tools to help people trade.
Signs of a Possible Fraudulent Sales Pitch
- Lead you to believe you can profit from current news already known to the public.
- Made through word of mouth referrals or emails from friends and relatives, members of community organizations, churches, or social groups.
- Contacts you asking for personal information such as your name, phone number, and email and home addresses.
- Promising that with forex there is no “down-turning market”.
How do I check if a broker is regulated?
The easiest way to check a broker’s registration is to look for it at the bottom of the website. The picture below is the bottom of 12Trader, a broker we recommend avoiding. The “about us” pages on the site link to an account login prompt. Nowhere on the site is there any mention of regulation or company history. All of these warning signs should make you cautious.