Forex scam or how to avoid becoming a victim of a scam?

Quite often you hear the expression that Forex is a deception or a scam, mostly it comes from the mouths of losing traders who lost their first deposit immediately after starting work.

Let's try to understand the actual state of affairs and identify the reasons for failures when trading on the foreign exchange market.

The first step is to understand what forex trading is and why some people make millions while others lose hundreds of dollars.

The research is based on statistical data from one of the well-known financial publications.

Forex trading is about making a profit on the difference in exchange rates when buying and selling, you buy cheaper and sell more expensive.

The principle itself is quite simple, but there are many nuances that cause the loss of your own funds.

According to statistics, more than half of novice traders lose their deposit on the first day, this happens due to not knowing the basics of trading and the desire to make a profit faster. The exchange rate moves along a curved line and an unsuccessful entry into the market almost always results in losses.

of leverage also plays a detrimental role , which, it would seem, should only increase profits, but in fact it increases profits, but proportionally increases the resulting losses.

It is the lack of experience and large leverage that is the main reason for losing money, and not the machinations of brokerage companies that want to take your money and deceive gullible investors on Forex; this fact is quite simply proven with a simple example.

When trading with just a few hundred dollars, you pay your broker for opening spread trades; sometimes the amount of such a commission per day can exceed the amount of the deposit in the trader’s account.

So why deceive the client and take away his deposit if successful trading will bring the company several times more profit than what is in the client’s account? The longer a trader trades, the greater the broker's profit.

It’s not for nothing that most brokers spend part of their profits on market analytics and publishing various forecasts.

But there is still a fact of deception in Forex

As in any business, Forex trading does not happen without deception; it is not completely protected from scammers who deceive their clients and turn trading into a scam.

Common options for Forex cheating or situations perceived as cheating:

• Brokers are scammers - they do not allow their clients to earn money and prevent them from withdrawing funds; often such companies introduce additional conditions that do not allow clients to withdraw their money.
• Technical failures - any software can fail, but only in the case of Forex do you lose money because of it.
• Gaps are price gaps that prevent timely triggering of stop loss.
• Widening spreads due to low liquidity in the market.
• Manipulations with currency pair quotes.
• Account blocking - due to the use of prohibited strategies , not all brokers allow scalping or advisors.

It should be recognized that some companies deliberately take actions that lead to the loss of the client’s deposit, but in most cases brokers warn about the danger of widening spreads or the occurrence of gaps.

In conclusion, I would like to note once again that currency trading is not a scam and has nothing to do with gambling; all responsibility for transactions lies solely with you.

And you can achieve success only if you know perfectly the fundamental and technical analysis of the foreign exchange market and at the same time have quite a lot of practical experience. Any quick earnings are always associated with high risk; the more profitable strategy you choose to earn money, the higher the likelihood of losing your invested capital.

Therefore, when starting to trade, do not hope for quick results, otherwise you will only be disappointed, as a result of which you will also assure everyone you know that Forex is a scam and it is simply not possible to make money on it.