Forex – Scam or Not

To begin with, it is worth understanding the reasons why people cut everyone with the same brush and declare that the entire Forex market is a scam.

1. Here, people lose money more often than they earn. This is true, but what is the deception? Such financial results are comparable to any business. A very tiny percentage of people have enormous wealth, and a large percentage have little income.
2. It is impossible to predict where the price will go. In fact, the market is chaotic, not amenable to any analysis. If Forex was predictable and there was a method to predetermine the price movement, then everyone would make money. But any market is designed in such a way that if someone makes money, someone is bound to lose.
3. Brokers do not withdraw money to the real interbank market. In part, we can agree, since this gives rise to a conflict of interest. But if you trade with a normal brokerage company, it is important to understand that this is just one of its schemes that does not pose a threat. It is often impossible to understand whether money is being withdrawn to the market or not.
4. The broker does not give away profits. If you contact a fly-by-night company that a priori could not be trusted, then you should not blame the entire structure.

Judge for yourself: Forex is a huge interbank market with a daily turnover of $5 trillion, where the world's largest banks, transnational corporations, and funds trade. Could it be a soap bubble?

Novice traders often confuse the concepts when they say that they have opened a Forex account. An account is opened with a specific broker or dealer. A fraudulent company that a trader is unlucky enough to encounter shouldn't cast a shadow over the entire industry, but it does. This is how dishonest brokers deceive in Forex: they attract clients with the promise of huge profits, deposit insurance, bonuses, and spreads that are several times smaller than they actually are. At the same time, it may be obvious from one website of such a company that the withdrawal of money is not provided.

How can a trader protect himself?

No matter how much you try to persuade people to carefully check the information about the company, look at its experience and reputation, reviews of other traders, people go on a gamble at their own risk, transferring money to offshore companies or literally giving it to "kitchens". It is generally not safe to transfer funds abroad, despite the fact that there are decent foreign brokers out there.