People who lost money due to their own ignorance often tell others about the ‘dark side’ of Forex. But these things are not truthful at all, and the reality can argue with false myths. Still, some impressive newbies believe everything they hear. In this article, Justforex team will reveal all secrets and myths about Forex to you and tell whether they are true or false.
1. ‘Forex is scam/gambling/pyramid’. We bet this myth won’t die even if one more hundred of years will pass. If you are a newbie, you’ll hear that Forex is like a big casino for approximately a million of times. In fact, trading on Forex is more serious than gambling. It’s just a market like any other one, food or property market. At the same time, many scammers came here to cheat people, that’s why this myth appeared. It’s not a pyramid either, because pyramids don’t require any logic and experience. In Forex these things have paramount importance and you just won’t be able to make money without them.
2. ‘Choose: Forex or your job’. Many people consider that you’ll have to be glued to your monitor waiting for a signal to open a trade. Fortunately, it’s just a myth, and you can easily combine your job and trading on the Forex market. This legend appeared because of short-term trading. It really requires maximum concentration of a trader. But deals usually are too short, up to 10 minutes. If you are a long-term trader, you’ll need just 5-10 minutes for checking your transactions. Remember that it’s no guarantee that 24-hours trading will make you profitable. Statistics says that 90% of traders combine their work and Forex successfully.
3. ‘Any broker wants to deceive a client’. Though there are really some scam brokers on the market, not all companies want to deceive a client to have some little one-time profit. The benefits of such an approach are unpleasant and small. If you have some issue, you can send a complaint to the regulatory authority. Here is a short list of regulators: Belize - International Financial Services Commission (IFSC) China - China Securities Regulatory Commission (CSRC) Hong Kong - Securities and Futures Commission (SFC) India - Securities and Exchange Board of India (SEBI) Indonesia - Commodity Futures Trade Regulatory Agency (CoFTRA) Latvia - The Financial and Capital Market Commission (FKTK) Malaysia - Securities Commission (SC) Russia - National Association Of Securities Market Participants (NAUFOR) Switzerland - Financial Market Supervisory Authority (FINMA) The UK - Financial Conduct Authority (FCA), Financial Industry Regulatory Authority (FINRA), National Futures Association (NFA)
Note that obtaining a license is not cheap ($20 million without clients’ deposits). It’s unlikely that any broker wants to lose these money and the whole business. Moreover, profitable traders bring profit to the broker (they are commissions and spreads). That’s why many licensed companies try to develop long and high-quality partnership with their clients.