Is forex real

Free forex bonuses

High profits are possible, but it's not a market where anyone should expect quick and easy cash. Some common examples of scams investors should look for include churning and brokers who simply underestimate risk. Churning involves brokers who execute unnecessary trades for the sole purpose of generating commissions.

Exploring scams involved with forex trading

While foreign exchange (forex) investing is a legitimate endeavor and not a scam, plenty of scams have been associated with trading forex. As with many industries, plenty of predators exist out there, looking to take advantage of newcomers. Regulators have put protections in place over the years and the market has improved significantly, making such scams increasingly rare.

Foreign exchange trading involves the trading of pairs of currencies. for example, someone might exchange euros for U.S. Dollars. In september of 2019, 1 euro ranged in value from about $1.09 to about $1.12. So, a trader who exchanged 100 euros for $112 when the value of the dollar is high could profit by exchanging those $112 for euros when the value of the dollar drops back to $1.09 per euro. Such a transaction would result in a net profit of less than 3%, which likely would be wiped out by the broker's commission.

Forex is a legitimate endeavor. You can engage in forex trading as a real business and make real profits, but you must treat it as such. Don't look at forex trading as a get-rich-overnight business, no matter what you may read in hyped-up forex trading guides.

Exchange rates are volatile and can go up or down unpredictably. When accounting for commissions brokers take from transactions, making money requires significant changes in exchange rates in favor of the trader. High profits are possible, but it's not a market where anyone should expect quick and easy cash.

What makes a scam?

Forex trading first became available to retail traders in the late 1990s. the first handful of years was wrought with overnight brokers that seemed to pop up and then close down shop without notice.

The common denominator was that these brokers were based in nonregulated countries. While some did take place in the united states, the majority seemed to originate overseas where the only requirement to set up a brokerage was a few thousand dollars in fees.

A distinct difference exists between a poorly-run brokerage, which isn't necessarily a scam, and a fraudulent one. Even a poorly run brokerage can run for a long time before something takes it out of the game.

Some common examples of scams investors should look for include churning and brokers who simply underestimate risk. Churning involves brokers who execute unnecessary trades for the sole purpose of generating commissions.

Additionally, some brokers often overestimate the ability of investors to make a lot of money quickly and easily through the forex market. They typically prey on new investors who don't understand that forex trading is what is known as a zero-sum game. When a currency's value against another currency gets stronger, the other currency must get proportionally weaker.

How to avoid being scammed

The first step to take is to check the location of the brokerage's headquarters and research how long it has been in business and where they are regulated. The more the better.

If you feel you are being scammed, contact the U.S. Commodity futures trading commission.

The simple act of finding out who you should call if you feel that you've been scammed, before investing with a brokerage, can save you a lot of potential heartache down the road. If you can't find someone to call because the brokerage is located in a non-regulated jurisdiction, this is usually a red flag and a sign that it's best to find more regulated alternatives.

What is forex?

The foreign exchange market – also known as forex or the FX market – is the world’s most traded market, with turnover of $5.1 trillion per day.*

To put this into perspective, the U.S. Stock market trades around $257 billion a day; quite a large sum, but only a fraction of what forex trades.

Forex is traded 24 hours a day, 5 days a week across by banks, institutions and individual traders worldwide. Unlike other financial markets, there is no centralized marketplace for forex, currencies trade over the counter in whatever market is open at that time.

How FX trading works

Trading forex involves the buying of one currency and simultaneous selling of another. In forex, traders attempt to profit by buying and selling currencies by actively speculating on the direction currencies are likely to take in the future.

World’s major currencies

COUNTRY	SYMBOL	COUNTRY	SYMBOL
united states	USD	switzerland	CHF
eurozone	EUR	canada	CAD
japan	JPY	australia	AUD
great britain	GBP	new zealand	NZD

learn more about which currency pairs to trade.

Want to know more about how to trade forex?

Our free let’s get to know forex guide will cover how to get started, help you make your first trades and outline how to create a long-term trading plan for long-term success.

*april 2016 interbank forex market average daily volume from bank for international settlements.

Is FOREX REAL? HOW DOES IT WORK?

11 answers

Forex trading is absolutely real. I have been using a hedge system for the past 7 months that takes as little as 15 minutes a week to manage. For those people who want to go it along it can consume their lives. That is why I use the hedge system. You can set up a demo account and try it out for free for 15 days and see if it is for you. I recommend checking out http://www.Wiseforexinvestor.Com/

If you have any questions please feel free to give me a call.

Yes forex is very much for real and a $1.4 trillion is traded every single day.

Here are a couple of articles you must refer

And this article on why you must invest in forex

Really, however, unless you have a experience do not touch this business, here it is necessary a lot of reading and be with an analytical mind, if it is interesting to read the reviews of people who earn on forex "is forex real?" https://ask.Naij.Com/business/is-forex-real-i13462. People give good advice for beginners and recommend a cool literature on the subject!

FX is real. It's not for newbies to trading. 95% of all new accounts lose their "seed" money within the first 90 days.

However if you're willing to work hard. Take 6 months to a year or more to read, study and practice. You may have a better chance of surviving.

Money management is more important than the percent of wining trades you have. This is an uregulated area. Many brokers truly stink. There are no good ones. Only brokers that are not as bad as others.

Binary options let users trade in currency pairs and stocks for various predetermined time-periods, minimal of which is 30 seconds. Executing trades is straightforward. The system uses user-friendly interfaces, which even an 8 years old kid, can operate without having to read any instructions. But winning trades is not easy.

Binary trading is advertised as the only genuine system that lets users earn preposterous amounts of money in ridiculously short period of time. Advertisers try to implicate as if you can make $350 every 60 seconds; if it was true then binary trading would truly be an astonishing business.

However, does it make any sense? Can every trader make tons of money in binary trading? Who is actually paying all the money or the profit to traders?

The first challenge is finding a trustworthy binary broker; secondly, you need to find a binary trading strategy, which you can use to make profits consistently. Without an effective trading strategy, there is no way you can make money in this business.

Learning a profitable trading strategy is possible, you should watch this presentation video https://tr.Im/16635

It's probably the best way to learn how to win with binary option

Yes it is real. I am a full time forex trader. But unfortunately, unlike stocks and futures markets, forex is a de-centralized market which means there is no centralized body that monitors the market and the participants (clearing houses, brokers ect. ). Because of this retail traders are to beware of unscrupulous brokers who are out to gain profit out of novice traders by using unscrupulous ways.

Forex trading is the buying/selling of a particular currency against another currency. For example, if you think US dollars is gonna strenghthen against japanese yen, then you would BUY USD/JPY pair (buying USD while selling yen). If you think the opposite is true, then you would SELL USD/JPY (selling USD while buying yen). Forex quotes ALWAYS comes in pairs, for example:- USD/JPY, EUR/USD (euro dollar versus USD), GBP/USD (british pounds versus USD). Therefore, you gotta always know which currency is strenghthening against which other currency.

I have attended a lot of seminars, read counless books on forex trading and it all cost me thousands of dollars. The worst thing was i blew up my first account. After that i opened another account and the same thing happened again. I started to wonder why i couldn,t make any money in forex trading. At first i thought i knew everything about trading. Finally i found that the main problem i have was i did not have the right mental in trading. As we know that psychology has great impact on our trading result. Apart from psychology issue, there is another problem that we have to address. They are money management, market analysis, and entry/exit rules. To me money management is important in trading. I opened another account and start to trade profitably after i learnt from my past mistake. I don't trade emotionally anymore.

If you are serious about trading you need to address your weakness and try to fix it. No forex guru can make you professional trader unless you want to learn from your mistake.

The secret word of trading success is "organized". You can't be successful without a strategy, a plan and some kind of technological support. I use a software called "autobinary signals" that is helping me a lot. There are plenty of them on the market. I recommend this one because it's very easy to use (you don't have to be an expert or have special skills to make money with it).

Its real like stock market, stock market dealing stocks while forex deal with money. Depend which company you use to play this "money game' and comissions. While many companies out there are fake so be-aware

What is forex trading and is it right for me?

There are very few investors who have consistently made massive fortunes over a while. Jim simmons, a quiet recluse, has been successful with smaller frequent trades in his medallion fund. On the opposite end of the spectrum is the brash george soros, who publicly “broke the bank of england” and made billions in a single forex trade on black wednesday.

Soros had been building a substantial short position in pounds sterling for months leading up to september 1992. He knew the rate at which the united kingdom was brought into the european exchange rate mechanism (ERM) was too high, their inflation was triple the german rate, and british interest rates were hurting their asset prices.

The british government failed to keep the pound above the lower currency exchange limit mandated by the exchange rate mechanism (ERM). It was forced to withdraw the pound sterling from the ERM, devaluing the pound. The estimated cost to the U.K. Treasury was £3.4 billion. Soros' fund profited from the U.K. Government's reluctance to raise its interest rates to levels comparable to those of other ERM countries or float its currency.

Everyone is familiar with investing in stocks, gold, or real estate. But forex trading has always been shrouded in mystery.

What is forex trading?

Forex trading refers to the foreign exchange markets where investors and traders worldwide buy and sell one currency for another.

You might have even participated in forex trading without even realizing it. Anytime I visit a foreign country, I exchange my U.S. Dollars for the local currency based on the prevailing exchange rate. In its simplest form, that is forex trading.

Currencies rise and fall against each other depending on various economic and geopolitical news. If you can buy low and sell high, you can make a profit in forex trading. Demand for particular currencies can be influenced by interest rates, central bank policy, GDP, and the country's political environment.

Because of forex's global nature, the markets trade for 24 hours a day, five days a week. Forex markets are the most liquid markets in the world.

Forex trading terminology

Forex markets have different terminologies and nuances for trading. Below is the list of most common terms.

Currency pairs

Traders frequently trade currencies by selling one currency and buying another. Forex trading always involves the exchange of currencies in pairs. You could have a EUR/USD pair for U.S. Dollars and euros. You can have similar pairs against the japanese yen or the australian dollar.

The major currency pairs are the four most heavily traded currency pairs in the forex market. Because of the massive liquidity, you can always trade them with the lowest spread. The four major pairs are EUR/USD, USD/JPY, GBP/USD, USD/CHF. Note that the U.S. Dollar is involved in every major pair because it is the world reserve currency.

The minor currency pairs don't include the U.S. Dollar and are also known as cross-currency pairs. For example, EUR/AUD and CHF/JPY.

The first currency in the pair is the base currency, and the second currency is the quote currency.

If you are bullish on the european union, you want to buy EUR and sell JPY. In this case, you would buy the EUR/JPY pair.

If you are bearish on the japanese yen, you want to buy USD and sell JPY. In this case, you would sell the JPY/USD pair.

The forex quote determines the price at which you do the buying and selling.

Forex quotes

forex quotes from https://finance.Yahoo.Com/currencies/

The EUR/USD is the currency pair, and the price is 1.2209. The price indicates that for every euro you sell, you could buy 1.2209 USD. The 52 week range indicates that in the last year, the price has fluctuated from 1.07 to 1.22. You make a profit when you sell a currency for more than what you paid for.

You might have noticed the forex quote has four places to the right of the decimal. The smallest price change that a given exchange rate can make is the pip. Most currency pairs, except japanese yen pairs, are quoted to four decimal places. After the decimal point (at one 100th of a cent), this fourth spot is what traders watch to count “pips.”

For example, if the EUR/USD moves from 1.2202 to 1.2205, we say the EUR/USD has increased by three pips.

Forex lot

Forex is traded in lot sizes. Standard lot = 100,000 units mini lot = 10,000 units micro lot = 1,000 units

A larger lot size involves more risk due to the amount of money involved. If you are starting, always trade in micro-lots.

Leverage

Forex traders often use leverage to juice up the returns. Since currencies trade in a small range, they want to amplify their gains. The challenge of leverage is that it cuts both ways. If you are right, then using a 50:1 leverage will increase your profits by 50 times. However, if you are wrong, then you lose 50 times more. For this reason, it is advisable to avoid using leverage when trading forex.

Can you get rich by trading forex?

Forex investors make money by deciding what currencies will rise and fall. Some traders swear by technical analysis and others will rely on fundamental analysis. Traders believe they know what direction the currency would move based on the latest news. The challenge with making money trading is that the same information is also available to everyone else, including professional investors.

An individual investor who is not involved with trading the forex market for a living would find it very hard to make money. You could get lucky once or twice. But eventually, your steak runs out.

The individual investor has no advantage over professionals who do this for a living. My four worst investments article highlights how easy it is to lose money when trading against professional investors.

Professional traders have powerful trading tools to take advantage of their online forex trading strategy. The trading platforms provide signals for automated trading and scalping. Forex scalping methods place trades for 1 to 10 minutes and close positions after gaining five pips. An algorithmic trading system combined with leverage enables the professional traders to day trade forex pairs better than individual investors.

If you want to grow rich and retire early, the best plan is to accumulate income-producing assets. Most stocks pay a dividend, or they increase in value like moonshot stocks. The rental property provides income in the form of rent and appreciating property prices.

Forex trading only makes money if you are right in the timing and direction of currency prices change. You cannot have a “buy it and watch it grow” approach with forex. If you wonder, “when can I retire” it is quite likely that forex trading won't help you.

Who does forex trading

Professional investors trade forex to make money. Trading is done in the spot market, where exchange rates are determined in real-time depending on the current economic and geopolitical factors.

Global companies actively trade forex as well in the futures market. They create a contract to buy or sell a predetermined amount of a currency at a specific exchange rate at a date in the future. The primary purpose is not speculation but as a hedge.

For example, infosys (NYSE: INFY) is a consulting company headquartered in india, but they have clients worldwide. They report results on the indian stock exchange. Since the indian rupee trades in a wide range against the U.S. Dollar, infosys would use the forex markets to hedge against currency risk.

Similarly, ARAMCO (SAUDI-ARAMCO) is one of the leading players in the petroleum and natural gas industry. It needs to hedge its commodity exports against price changes in U.S. Dollars.

Final thoughts on forex trading

Forex is part of our everyday life as a result of living in an interconnected global economy. Currencies usually trade in a tight band. If a currency suddenly depreciates, it could be an indicator of upcoming inflation or potential geo-instability.

It is tough to get rich with forex trading for individuals. You might lose all your investment. To be profitable, one needs a deep understanding of the macroeconomic fundamentals driving currency values coupled with technical analysis experience. And it would help if you traded on it before anyone else does. Proceed with caution if you decide to incorporate forex trading as part of your investment strategy.

Is forex trading really profitable and can you do it?

One question that comes up a lot is: is forex profitable?

Many times this question comes from retail traders that are not finding any success with their trading approach. When I say “trading approach”, I don’t just mean their trading strategy.

Your trading approach is much more than a trading strategy and we will cover that later.

The short answer is yes, forex trading is profitable.

The slightly longer answer is yes, trading in the forex market is profitable but chances are you won’t make any money.

How do I know trading forex can be profitable? Because I’ve been swing trading forex since 2008 and make money. In fact, you can take a look at my free forex chart setups that I post every week using technical analysis and then update any trades at the end of the week.

Everything in those chart is for one reason: to teach you how to use a simple approach to trading forex to make profits.

It’s one thing to make money trading and an different thing to keep the profits.

Your biggest job as A forex trader

I’ve mentioned it many times in my trading posts but the number one job you have as a trader, is a risk manager. If you do not understand risk…if you do not manage your trades in the proper way, you will lose.

If you are risking too much per trade to withstand a string of losing trades, you will be out of trading faster than you imagined.

If you continue to move your stops around to avoid taking a loss, you will eventually lose your account. Your broker will be happy because you are probably a retail trader and your broker banks your loss, but you won’t be.

Your second job as a trader is simple: enter trading orders.

If you are trading, you’ve done your homework and are trading a strategy that has a verifiable edge in the market. You have made a trading plan complete with which setups to take, how you will exit, where you will take your loss.

You’ve outlined which currencies you will trade and the style of trading you will be doing. Day trading is popular but swing trading currencies is how I trade the retail market. If I day trade, it is not often, is not forex, and is done in the futures markets with the occasional options trading play.

Your job as a trader is to execute the trading plan when your setups take place. You enter your trading orders, manage your trades, and take your profit and loss the way it is set out in your trading plan.

Without a trading plan, you are doomed to fail.

How long can you trade with profits?

Consistency matters when currency trading and if you are applying the trading plan in a consistent manner, you should be able to reap the rewards of the edge your trading plan gives you.

You will take a loss and sometimes many in a row. You will see your trading account fluctuate and it can be painful to see at times. The expectancy of your trading system is what should keep you glued to the trading plan during the times of an equity curve down swing.

The truth is you will have a losing day.

You will have a losing week.

At times, your month may be at break-even or worse, at a loss.

These are the realities of trading and if you are asking about being profitable over the long run, the answer is yes if you are trading a positive expectancy trading strategy.

One week of loss or even a month of not being profitable does not make for trading failure. It must be expected. You must expect to lose and also to imagine that you have yet to take the biggest loss of your trading career.

You read that right. Think that you have yet to experience the most painful loss of all. Expect that a multiple of risk loss is around the corner.

It will remind you that the biggest trading job you have is trading your emotions for a proper mindset and to protect your trading capital.

What is forex money management?

Forex money management is simply about risk. In short, if you take big risks, you can make a lot of money in short period of time but the bad side of that is that a few bad high risk trades and you lose a lot. Wins and losses come in a random distribution.

You never know if that next trading will be a winner.

When you trade a lot, over trader, that’s bad forex money management. When take a lot of risk in a trade, that’s bad forex money management.

Learning forex money management is the easiest thing. But doing it, applying it, sticking to it when everything else doesn’t seem to be working is really hard…and all it comes down to is mindset.

What is A good mindset?

There are many books written about the trading mindset but before I list a few – a great mindset is useless if you are trading a flawed trading strategy.

You understand that you are not worried about the day to day trading account fluctuations because you are focuses on the long term.

When a trading loss or trading profit does not bother you, but you see it as part of the whole process to keep growing your account.

You know that risk management can help you last a very long time in trading forex and failure to follow it is the fastest way to part with your money.

You understand the negative impacts of greed and fear and learn to control it.

Trading the forex market is a business and like any business, you have to approach it with a professional approach and like most companies, have a “trading resolution”, something you abide by at all times.

The four mindset points above can be a great place to explore.

Break out a pen and paper and jot down those four ideas about mindset. Expand on them and ask what they mean to you.

One word to be A successful currency trader

If I had to use one word to describe the best trader, I would use the word consistency.

By using that one word, I am assuming that everything from your trading plan to the forex broker you will use has been detailed.

The job you have trading currencies is to implement that trading plan. How? With consistency. Traders that do everything in a consistent manner are sticking to a proven edge.

More importantly, by being consistent, when a trader is not seeing their profitability increase or they are seeing their profit drop, they can zero on each step they take to find the issue.

It is difficult to find where a problem is if you are constantly switching gears.

This is why I never think it is a good idea to take trading signals from people you don’t know. Too much trust goes into the word of someone else – someone who is not responsible for your trading account. How can you fix a strategy if you don’t know how the trading signals are generated?

In the end, I believe everyone has the chance to become successful and profitable when trading. The issue is if they will take the steps required to do so.

I also believe that most won’t do what is required and will continue to look for the easy way or the “secret sauce”.

There is no magic. It’s called hard work on the right things. I hope my trading blog and the setups I post every week are helping you gain some ground in your quest to be a profitable trader.

Is forex a scam?

Chetan shekar

Contributor, benzinga

Want to jump straight to the answer? The best forex broker for most people is definitely FOREX.Com

Wherever you are, getting your hands on the local currency is simple thanks to foreign exchange. And trading foreign exchange, or forex, allows you to swap between different currencies in a matter of minutes and make a profit at the same time.

Online brokers make trading forex market easier than ever. Forex is not a scam. Take a look at our guide to learn more about trading forex.

Table of contents [ hide ]

Best for

Overall rating

Best for

1 minute review

IG is a comprehensive forex broker that offers full access to the currency market and support for over 80 currency pairs. The broker only offers forex trading to its U.S.-based customers, the brokerage does it spectacularly well. Novice traders will love IG’s intuitive mobile and desktop platforms, while advanced traders will revel in the platform’s selection of indicators and charting tools. Though IG could work on its customer service and fees, the broker is an asset to new forex traders and those who prefer a more streamlined interface.

Best for

New forex traders who are still learning the ropes

Traders who prefer a simple, clean interface

Forex traders who trade primarily on a tablet

Easy-to-navigate platform is easy for beginners to master

Mobile and tablet platforms offer full functionality of the desktop version

Margin rates are easy to understand and affordable

Access to over 80 currency pairs

U.S. Traders can currently only trade forex

Customer service options are lacking

No 2-factor authentication on mobile

Account minimum

Pairs offered

Account minimum

Pairs offered

Account minimum

Pairs offered

1 minute review

FOREX.Com is a one-stop shop for forex traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.Com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.Com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.Com is impressive, remember that it isn’t a standard broker.

Best for

Impressive, easy-to-navigate platform

Wide range of education and research tools

Access to over 80 currencies to buy and sell

Leverage available up to 50:1

Account minimum

Pairs offered

Account minimum

Pairs offered

1 minute review

Though australian and british traders might know etoro for its easy stock and mobile trading, the broker is now expanding into the united states with cryptocurrency trading. U.S. Traders can begin buying and selling both major cryptocurrencies (like bitcoin and ethereum) as well as smaller names (like tron coin and stellar lumens).

Etoro offers traders the opportunity to invest their assets into premade portfolios or cryptocurrencies, similar to services offered by robo-advisors through traditional brokers. Though etoro isn’t a one-stop-shop for everything an investor needs, its easy-to-use platform and low spreads is a great way to enter the cryptocurrency market.

Best for

International forex/CFD traders

New cryptocurrency traders looking for an easy-to-use platform

Traders who want to buy and sell cryptocurrencies on-the-go

Simple platform that is easy to master

Copytrader feature that allows new traders to copy the same strategies used by professionals

Virtual dummy account that gives you $100,000 to practice trades

U.S. Traders currently limited to cryptocurrencies

Only 15 major coins available to trade

Account minimum

Pairs offered

Account minimum

Pairs offered

1 minute review

HYCM is 1 of the world’s leading forex brokers, offering investors access to over 69 unique currency pairs. However, forex isn’t the only thing the broker offers — HYCM also offers high rates of leverage, stock and ETF trading, commodity investing and much more. Getting started with HYCM is quick and easy, and most investors can open an account in as little as 10 minutes.

HYCM offers a varying fee structure, which allows investors to choose the spread option that’s best for them. A wide range of educational and investing tools are available, which can be equally beneficial to both experienced and novice traders. Though HYCM isn’t currently available in the united states, it can be a great choice for residents of the other 140 countries where it offers service.

Best for

Investors who want a customizable fee schedule

Traders comfortable using the metatrader platform

Islamic traders who need swap-free accounts that don’t build interest

Wide range of currency pairs available

Excellent selection of educational tools

$0 deposit and withdrawal fees

Account minimum

Pairs offered

Account minimum

Pairs offered

1 minute review

A fully regulated broker with a presence in europe, south africa, the middle east, british virgin islands, australia and japan, avatrade deals with mainly forex and cfds on stocks, commodities, indexes, forex, cryptocurrencies, etc. This brokerage is headquartered in dublin, ireland and began offering its services in 2006. It offers multiple trading platforms and earns mainly through spreads.

Best for

Beginners

Advanced traders

Traders looking for a well-diversified portfolio

Controlled by regulatory agencies of multiple countries

Choice offered in terms of trading platforms

Support available in 14 languages and trading platforms in 20 languages

Practice/demo account available for trying out

Breadth of trading assets

Does not accept customers from the U.S. As it isn’t regulated in the U.S.

Transferring funds to the account may take up to five days; withdrawals could take up to 10 days

Simply put: is forex a scam?

Forex is not a scam. FOREX.Com and other forex trading platforms list currencies in pairs. When you trade forex, you buy 1 currency and sell another simultaneously.

Previously identified scams

How can you be certain that forex isn’t a scam? The foreign exchange market makes the biggest turnover of $6.6 trillion per day. But the opportunity to create these profits in a short time comes with its risks.

Large sums of money on the table mean there are likely brokers that purposely want to mislead you and cheat you out of your money. Here’s a rundown of common forex fraudsters and scams you should avoid.

Broker scams

Forex traders are always on the lookout for the best brokers. Everyone wants the most return on their investment. But it’s important to beware of forex brokers that could take you for a ride.

Be sure to do your research about brokers and their reputations. A good place to start is the footer of the broker’s website. If the footer has no information about regulatory bodies or any other disclaimers, don’t go forward.

The broker should list the securities and exchange commission (SEC) regulations. You can also do a quick check on forexfraud.Com for brokers with a history of negligence and fraud. Remember, your broker must have your best interest at heart and its trading strategies must reflect that.

Signal seller scams

Forex brokers rely on signals or paid information to predict the movement of currencies and their value. This information can be purchased from firms, asset managers or seasoned traders called signal sellers.

You can subscribe to signal sellers on a weekly or monthly basis for a fee. You might hear brokers citing these sources to convince you about a trade.

In such cases, ask your broker to give you a historical performance chart of their signals to assess the authenticity of their claims. Since most signal sellers have a mixed record of good and bad tips, you can have a tough time making a firm decision.

Brokers will leverage such grey areas to give them the benefit of the doubt while swaying you to trade in a particular way. And if the trade doesn’t go as planned, brokers will blame the signal sellers for the losses incurred without taking responsibility.

Point-spread scams

The point-spread scam is 1 of the oldest tricks in the book. Since forex trading started, brokers have been using computer-manipulated bid and ask spreads to deceive the trader.

Typically, forex currency pairs are projected with 4 decimal points. Crooked brokers will manually input a specific bid and ask spread with a large difference in the 4th decimal point for higher commissions. This takes a huge cut from your profits without your knowledge.

In recent years, the point-spread scam has been curbed but it’s not entirely out of practice. Comparing bid and ask spreads from other brokers will give you an immediate insight into point-spread scams.

Robot scams

The latest trend in forex trading is the use of automated algorithms or “expert advisors.” these robotic systems scan the data of various currencies and their past performances to determine and set profitable enter and exit trades in advance for you.

From stellar websites to fake testimonials, these bot-based organizations try to persuade you to think you can create wealth on autopilot without logging into your account regularly.

The tech boom means bots have lured forex beginners who later realize too late their money is all gone. But there are some tried and tested bots in the market that have proved successful in their trades.

Best forex brokers

Forex trading takes place 24 hours a day, 5 days a week. But unlike the stock trading market, which has a multitude of stock options to buy and sell, you only have a limited number of currency pairs in forex to invest in. Since there isn’t an on-ground marketplace for forex, an online platform is essential for active trading.

Signing up with an online forex trading platform gives you access to plenty of research tools and international currency-related news that can make or break your trade. Out of the hundreds of forex trading platforms available online, benzinga has hand-picked the best to get you started.

Is forex trading really profitable and can you do it?

One question that comes up a lot is: is forex profitable?

Many times this question comes from retail traders that are not finding any success with their trading approach. When I say “trading approach”, I don’t just mean their trading strategy.

Your trading approach is much more than a trading strategy and we will cover that later.

The short answer is yes, forex trading is profitable.

The slightly longer answer is yes, trading in the forex market is profitable but chances are you won’t make any money.

Everything in those chart is for one reason: to teach you how to use a simple approach to trading forex to make profits.

It’s one thing to make money trading and an different thing to keep the profits.

Your biggest job as A forex trader

If you are risking too much per trade to withstand a string of losing trades, you will be out of trading faster than you imagined.

Your second job as a trader is simple: enter trading orders.

Without a trading plan, you are doomed to fail.

How long can you trade with profits?

Consistency matters when currency trading and if you are applying the trading plan in a consistent manner, you should be able to reap the rewards of the edge your trading plan gives you.

The truth is you will have a losing day.

You will have a losing week.

At times, your month may be at break-even or worse, at a loss.

These are the realities of trading and if you are asking about being profitable over the long run, the answer is yes if you are trading a positive expectancy trading strategy.

You read that right. Think that you have yet to experience the most painful loss of all. Expect that a multiple of risk loss is around the corner.

It will remind you that the biggest trading job you have is trading your emotions for a proper mindset and to protect your trading capital.

What is forex money management?

You never know if that next trading will be a winner.

When you trade a lot, over trader, that’s bad forex money management. When take a lot of risk in a trade, that’s bad forex money management.

Learning forex money management is the easiest thing. But doing it, applying it, sticking to it when everything else doesn’t seem to be working is really hard…and all it comes down to is mindset.

What is A good mindset?

There are many books written about the trading mindset but before I list a few – a great mindset is useless if you are trading a flawed trading strategy.

You understand that you are not worried about the day to day trading account fluctuations because you are focuses on the long term.

When a trading loss or trading profit does not bother you, but you see it as part of the whole process to keep growing your account.

You know that risk management can help you last a very long time in trading forex and failure to follow it is the fastest way to part with your money.

You understand the negative impacts of greed and fear and learn to control it.