IS FOREX TRADING LEGIT?
Tring – tring, this is the unique call that you usually get from a strange number, the number in most cases might not be locally but it is from overseas coming from an unknown Forex Brokerage company and this is how they have introduce themselves to you. When you hang off the call they will continue to call you until they find you or until you speak to them, so annoying isn’t it?
You will be introduced to a voice not common to you; it will be a strange voice than that you rarely hear on daily basis, the person sound as if he is inside the hole or in a closet of a bathroom, the voice will be surrounded by an echo. When you tap your phone to answer – Today it is not Tim – it is no Dig and also it is not Harry who usually calls you to ask you about your day or your work but things seem so serious, these people mean business.
You ask yourself this question “Where did this people get my number?” the truth is they might have got it from Tim or Harry, who avoided them by giving them your number – However don’t get so annoyed quickly because they might have given you a right key to your success without recognizing it.
Few Question that you usually ask yourself
- What is Forex Trading?
- Is Forex Trading Legit?
- Why some Forex Traders have lost their money while trading?
- Can you make profi with Forex Trading
- Why are Forex Brokers so influential and pushing
WHAT IS FOREX TRADING?
Let us quickly brake this term so that you understand what is happening. The term Forex involves all currency exchange from different participants in the market. A person who is residing in United State of America may require exchanging his USD to a currency of his destination when visiting to other countries, for example he may need to exchange USD to South African Rands if he is visiting South Africa.
Then the trading part happens when this individual buy or sell this currency using the network of computers or exchanging currencies online. Since this transaction happens between two people or more and the exchange of currencies from him and the third party is involved then this is called trading. People can trade different currencies anywhere they are in the world; they just need an online access using their Tablet, Smart phone, Laptop and or Desktop.
IS FOREX TRADING LEGIT?
Many people ask themselves whether Forex Trading is legit or illegal and also they ask whether is truthful or it is just another scam trying to rob them their money. Forex Trading is legit and truthfully in many countries, meaning that there are legal regulations set for individual Forex traders and Forex Brokers.
Forex Trading or the Foreign exchange market existed long time ago, you may trace it back to ancient times and it is here to help traders, investors, governments, banks, firms etc., to fairly exchange currencies.
However it may depend on the country you are in, Some small developing countries they don’t currently have regulations about Forex Trading, so trading in a country which prohibit Forex trading makes it illegal to trade, if you do trade in secrete then the question lies in this, which bank will you use to deposit and withdraw your funds? Or do you need to go to trade currencies to other countries which allow or permit Forex Trading? However the choice is yours. It is advisable to check with your country whether it is legitimate to trade and if it is: – then you may then explore and make money for yourself.
WHY OTHER FOREX TRADERS HAVE LOST THEIR MONEY WHILE TRADING?
Rule breakers are punished so hard, painful will it be to them. Every house has its own rules, now since you are in the Forex market you have to behave as other Forex traders and you should as well obey Forex rules. Examples, if you drive 180 km per hour in a 100 km hour zone when you get an accident will you blame the government? Or will you say it is illegal to drive? Or will it be blame to that quite car of yours?
- Most Forex Brokers trade using loans or borrowings, they over use those free loans or ( Leverage) which lead them to lose all their money while trading, those who are in Forex trading will know better what I am talking about, sometimes you do not need to use leverage, you just have to trade with what you have.
- Impatient people lose their money while trading; they give up when the market goes against them forgetting that in few days the market will be in their favor, so when you give up or cancel trades, the current losing trades will affect you so much and also the winning trades will benefit you should you close the deal.
- Lack of Forex trading knowledge will affect Forex traders so much, how can you trade what you don’t understand? Or how can you hide your money in the room that you don’t know whose inside? It is much better to get the basic knowledge about Forex trading before you may even attempt to trade.
CAN YOU MAKE PROFIT WITH FOREX TRADING?
I like to re-question back to you with this words that will be a simple answer to understand. Assume any currency to trade with against the USD , If you buy USD today and hold them for 3 months and when the exchange rate of your currency which is ( USD ) appreciates and then decide to sell those USD did you make profit or a loss? Surely it is a profit since you bought them less and sold them dearer. The profit will be most determine by how much you have invested, meaning the smaller you invest then the smaller the profit you will make and vice versa.
WHY ARE FOREX BROKERS SO PUSHY?
Now we are here to find out why did you receive those calls and why did the caller seemed so disparate, was he a scammer? You are the judge. Forex Brokers are agents and they receive a command from you as a trader, you may command them online telling them what to do with your money.
Forex Brokers receive their commission when you buy or sell currencies, this commission is known as ( Spread) meaning they will charge you a small commission to exchange currencies for you or will charge you to use them, so fair isn’t it? There is no one who will want to work without a pay? I am very convinced that you now understand whether Forex trading is legit or not.