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If you have been wondering if Forex trading is a scam or not as some people do, then you have come to the right place. We shall take you through all the jinks that enlighten you about the Forex scam so that you discover the truth. To start with, Forex is the abbreviation for foreign exchange. It is often referred to as currency trading. The trading is carried out online through a particular trading platform. Currency trading involves buying selling of various currencies. Trading is done in a given currency pair. The currency pairs provide may vary depending on the Forex broker you are using. The most popular pairs include euro/dollar (EUR/USD), euro/British pound (EUR/GBP), dollar/Swiss (USD/CHF), dollar/Yen (USD/JPY) etc. Below are some reasons which make Forex not to be a scam.

1. Industry Regulations

In the world of Forex, large sums of money changes hands regularly. You might be worried about the safety of your money when you hear about Forex scam because there are chances you might lose it through the activities of scammers and fraudsters. Just like any other financial market, there is total control and regulation. The activities of both the trader ad the broker are regulated to ensure that there is safety of the investor funds. There are several Forex regulatory authorities that work to ensure that duly measures and controls are followed to the dot. Every country has its independent regulatory authority that monitors this market. Most regulations are also done by the central bank on behalf of the government.

Some brokers recommendations based on regulations:

• NFA (National Futures Association, based in USA): Oanda
• FSA UK (Financial Services Authority United Kingdom): Alpari UK
• FINMA (Swiss Financial Market Supervisory Authority): Dukascopy
• CySEC (Cyprus Securities and Exchange Commission): XEMarkets
• ASIC (Australian Securities and Investment Commission): Pepperstone

NFA has the strictest regulations of all (such as limited leverage, CFD ban, hedging FIFO rules, etc), so if youre not a USA citizen I suggest you to avoid brokerages that operate under their regulation (or approach them, depends on how you view this).

2. Mass Popularity

There is mass popularity of the Forex business that indicates it’s not a scam. In fact this is the biggest financial market in the entire world. Trade starts in Sidney and spread across to other major world cities. Currently, there is no country where this business is not executed. There are millions of customers from different parts of the world trading Forex daily and at the making huge profits in return. Forex scam cannot be so if there are many testimonies of people who have made it and become millionaires by just trading currencies over the internet. You might have come across a number of them over the internet, local newspapers, magazines, and other forms of media. Check forex brokers list for detailed info, reviews, and ratings of a particular forex brokers.

3. Biggest Financial Market

Just as stated earlier, Forex is the biggest financial market in the world. It could not be so if the market is a scam. All over the world, there are millions of people participating in currency trading. This could not happen if they are losing their hard earned pennies through Forex scams. No one can be so bold to stick to a losing business. Since its inception a few decades ago, the market has emerged as the biggest financial market in the entire world beating the traditional ones like equity trading. Every single minute, there is someone transaction a Forex trade.

4. Live Support And Easy Transfer Of Funds

One thing you will note is that every genuine Forex broker offers customer support to its clients. This may take different forms such as emails, telephone, live chart etc. You will also note that almost every broker offer live customer support. You can agree with me that no broker would be willing to do this if they are engaging in any given form of scam. Besides this, you will not have any bad experience when it comes to funds transfer. The brokers offer easy payments methods for both the initial deposit and withdrawal which indicates Forex scam is not true.

5. Demo Accounts

Every Forex broker provides a free demo accounts to its new clients. We all know that Forex trading is high risk. When you are new to the market, you may not know exactly how to over these risk and manage your trades appropriately. The brokers give the dully assistance to help you through. Besides, they also provide a demo account to help you learn the process of trading currencies. The brokers always insist that you have to practice with the demo account until you are confident enough before you are allowed to open a live account. The demo account just work like the live account. The only difference is that you are not using real funds.

Forex trading has been recognized worldwide for providing great opportunities to make lucrative cash by trading major world currencies. However, people hear about Forex scam which they might consider true. Additionally, the market has been recognized as being very reliable and consistent. Its popularity has significant grown helping millions of traders make easy cash. Thousands of people have become millions from the scratch by trading currencies. These just confirm that the market is not a scam by any means.

Yet, it is also a fact that careless trader lose money that they cant afford to lose. Read forex trading basics to discover how to trade smart by applying necessary preventive actions to avoid total loss like 90% other novices traders.