Chan Wah Lee / Perfil

The Forex market is a legitimate trading market where the world’s currencies are traded. It is not a scam in itself. Without the Forex market it would be difficult to trade the currencies needed to buy imports, sell exports, to go on holidays or do cross border business. However, with high leverage positions which, in theory, have the potential to make traders a lot of money and because there is no centralised/regulated exchange, scammers take advantage of the situation and the inexperienced traders desire to enter the market. The Forex market is legitimate markets where honest traders do business. but it can get a bad reputation due to several scams that are associated with Forex trading. The high quantity of scams is due to the less strict regulation of the Forex market, making it an easier target for scammers. The Forex market is particularly hard to regulate as it is the largest, most liquid market in the world. It is traded 24 hours a day, and there is no centralized body governing currency trading. The Forex market is a ‘zero-sum’ market, which means that for one trader to make a profit, another trader will need to make a loss, the Forex market does not itself add value to the market. Because a lot of the currency movements are directed by large well-financed corporate institutions and banks, who are better informed about the market as a whole, the under capitalised trader is always likely to lose. Institutions and large banks trade in Forex on a daily basis; to make a significant profit in this market takes a considerable learning curve.

FX & CFDs Institutional Trader