IS FOREX TRADING LEGIT? HERE’S WHAT YOU NEED TO KNOW You know there’s a lot of buzz around the forex market. Everyone wants to get the hang of the market. Well, who can blame them? It is the most lucrative market, after all. Saqib Iqbal Author 8 min read Published: February 17, 2022 Updated: November 28, 2022 Views: 1189Content WHY DO PEOPLE THINK FOREX IS NOT LEGIT? WHAT MAKES FOREX TRADING LEGIT? WHAT ARE SOME OF THE SCAMS OF FOREX TRADING? FAQsHowever, when you learn about the market, one question always comes up: “Is forex trading legit?” Many people have asked me this question. Every time I say, “Yes, it is a legit market.” I want to dig deeper into this and tell you all the info you need. So, you can know that forex trading is legit.WHY DO PEOPLE THINK FOREX IS NOT LEGIT? Before describing what makes forex legit, I want to clear the fog. Many people get the notion that forex trading is not legit. But why do they think this? Let’s find out.There’s no doubt that the forex market is huge. A lot of players make up the market. So, when there are a lot of cooks, sometimes the broth spoils. Forex and shady business go hand in hand.There are a lot of scams in the market. Scam brokers, trading robots, and signal services lead to this perception. (I’ll explain the scams in detail later.) So, that’s why people think forex is not legit.However, even though uncertainty does exist, there isn’t anything to fret about. You just need a clear mind and a bit of research, and you won’t fall into the trap.Forex scammer illustrationI’ll give you a brief on how you can avoid such scams later.Further reading How to make money on binary options without any investment? TRADING STRATEGY ON A FRACTAL REVERSAL WITH THE RSI FILTER How long to learn binary options trading in 2023? The 80/20 rule In Trading. How To Implement It? Take-profit and stop-loss on the IQ option platform! EasyOption Review 2023: Is It Worth It?WHAT MAKES FOREX TRADING LEGIT? The question is how forex trading is legit. I mean, there has to be a reason for it. I want to describe this reason.Let’s draw an analogy. When you travel to another country, you need its currency. You go to an exchange office and change your native currency into another one.There’s always a fluctuation in the rates, but you do make an exchange. And not just with traveling; countries trade with each other through currency. There isn’t any universal currency, so countries or people have to exchange.That’s when forex exchange enters the scene. Currencies from every nation on the planet make up the forex market. That’s why it is the most liquid and biggest market globally. Over $5 trillion worth of transactions happen every day.Let me remind you that a trillion has 12 zeros in it. You see, forex trading is all about currency swapping.When you trade a forex pair, you think one currency will appreciate or depreciate against the other. For example, let’s say you buy GBP/USD at 1.3500.Later the value of the pair increases to 1.3520. You profit from the pair’s rise and make some cool bucks. Of course, it isn’t as simple as that, but you get the point. So, there isn’t anything shady about it.Illustration of a forex traderYou are exchanging currencies like you do when you travel to another country. Millions of people enter the market every day. Not only people but banks and major financial institutions also enter the market.If forex trading was not legit, do you think those banks and institutions would trade? Of course not! That’s why forex trading is legit.Further reading Take-profit and stop-loss on the IQ option platform! Astounding Facts About Forex - The Largest Trading Market The Bitcoin Fund Review (Buy, Sell, or Hold) Investors take Forex platform ROFX and its founders to court How long to learn binary options trading in 2023? The 80/20 rule In Trading. How To Implement It?WHAT ARE SOME OF THE SCAMS OF FOREX TRADING? As I mentioned earlier, people do think forex is not legit. This is partly because of forex scams. There are a lot of forex scams. So, I’ll describe them and later tell you how to avoid them.Forex brokerA forex broker gives you access to a trading platform to buy and sell currencies. You do need a broker for forex trading. You open an account with them, and you start trading.An example of a good Forex Broker is MaxiMarkets. However, not all brokers are the same. There are many shady brokers out there.By shady, I mean that they don’t have a license from a regulatory body.A bit about forex broker regulationsThere are different regulatory bodies around the world. They monitor and protect traders from shady activities. When a broker has a license from a regulatory body, it shows trustworthiness. There are many regulatory bodies, but at the top of the heap are:FCA (Financial Conduct Authority) UKASIC (Australian Securities and Investments Commission)NFA (National Futures Association) USCFTC (Commodity Futures Trading Commission) USCySEC (Cyprus Securities and Exchange Commission)If a broker doesn’t have any regulation, then they are not answerable to anyone. So, if something shady happens, then you can’t do anything. If you want to avoid this, do proper research before taking the plunge. You can check our broker reviews to see which one is right for you. Thinking of a regulated broker, check Saxo bank and Teletrade.Trading robotThe promise of making money while you sleep is tempting. After all, don’t you want to earn while just sitting there counting dollars? Many scammers portray forex robots like this. They say forex robots will do all the hard work while you just relax.I have to say forex robots are a real thing. There isn’t anything shady about them. I know a lot of pro traders who use them. They take the hassle out of trading and automate the whole process. But when a forex robot provider says it can make you rich overnight, that is a red flag.There isn’t a robot in the world that can do this. Yeah, robots do make money quickly, but they also lose quickly. One day you make $100; another day, it’ll blow your account. You have to understand this.Forex signalsA forex signal indicates when to enter or exit the trade. There are a lot of providers who use forex signals as their business model. These signal providers charge you a monthly fee in exchange for signals. The problem is sometimes they don’t provide what they promise.They charge you but don’t provide signals at all. These providers also pitch by showing you the results of their service. They claim to know the science behind the market. A quick Google search will tell you how to become a forex signal provider.But you have to grasp that signal providers do not always tell the truth. Of course, there are legit signal providers, but you often bump into shady ones. The best way to avoid this is to look at their reviews and see if they have an account in Forex Factory.Forex Factory is one of the most reliable sources in the industry. It allows signal sellers to create an account and show their results. So, you can look at their track record and decide which are the best signal providers.Fake forex fundsIt is a no-brainer! You see ads on websites claiming guaranteed returns. They post astronomical figures in quick time. However, forex is not a get-rich-quick scheme.You make money in the market by learning the nitty-gritty. If something looks too good to be true, it probably is. You must refrain from falling into the trap and protect your funds. Only open an account with a reputable forex broker. Consider one of these: City Index, Vantage and Teletrade.How can you avoid forex scams?Educating yourself is the best way to avoid forex scams. Knowing more will make it less likely that you will be taken advantage of. Knowledge is the most powerful weapon. Do your research and learn more about the foreign exchange market. Grasp the terminologies, and know how the market operates. You can also check our blog.How to avoid forex scamsWe post content daily. From beginner to pro, everyone will find something useful there. Also, consider opening a forex demo account. This is a virtual account where you get virtual funds for trading.It’s a good way to hone your skills before you start live trading. Remember to open a demo account with a trustworthy forex broker. And take your time when you invest. Take your time when you choose a broker. Ask a lot of questions and search for answers before dipping your toe in the water.Further reading What does a forex trader do? What is forex trading? 110 Trading Quotes to Set You on the Road to Success What is Forex? Unknown Facts & Figures (The Ultimate Guide) Top 10 Fun Facts About Forex Trading Volume Based Trading Techniques (Volume Indicators) Free Online Interactive Binary Options Charts and Why You Should Use Them FAQsIs forex trading legit?Forex trading involves buying and selling currencies. Nations, financial institutions, and people enter the market every day. Of course, there will always be some dangers in the market because of its sheer size, but overall, forex trading is legit.How do forex regulators provide legitimacy?Regulatory bodies like FCA, ASIC, CFTC, and others protect your funds if the broker does anything shady. Brokers are responsible for protecting your money. They can’t use your money for their own purposes.Is your forex broker a scammer?Your broker is an important aspect of your trading. You sign up, deposit funds, and start trading. Unfortunately, choosing an unregulated broker won’t help you, as your funds are unprotected.How do I spot forex scams?The best way to avoid scams is to learn about the market, grasp market terms, and know how the market works. It’s the only way you can avoid forex scams.FINAL THOUGHTSForex trading is truly a mystery in itself. You must expect some scams when over $5 trillion of transactions are made every day. However, even if there are occasional scams, the market overall is legit. You can trade and invest in forex without any hiccups!Further reading Moon Bitcoins Review 2023 (Legit Or Scam) 11 BEST PAPER TRADING APPS (TRADE WITH NO RISK) What Is Online Wealth Market (The Full Review 2023) How to Buy Stripe Stock FEATURES OF ISLAMIC ACCOUNTS FOR TRADING IN BINARY OPTIONS AND FOREX CumRocket, The Naughty Boy Of Cryptocurrencies