Being one of the most volatile global markets, Forex or Foreign exchange trading is one of the most tempting ways to earn profits these days. But, unfortunately, most novices entering Forex trading come across unexpected losses that surpass the expectations due to the same reason, the extreme volatility of the currency market.
Although the main reason behind newbies coming across losses is lack of proper strategy and proper education, the question “Is Forex Trading Legit” indeed arises. Nevertheless, the question is in buzz recently on the Internet due to the rapid increase of newbies getting lost in Forex trade.
Are you looking for the same answer? Well, you are about to get a clear answer about forex trading here. Here is what you should know!
What is the forex market and Trading?
As the name suggests, Foreign exchange is the exchange of currency between the buyers and sellers at a certain price in the marketplace. It is the fundamental space where the international economies operate while the goods and services flow around the world. The currency exchange that one does while traveling abroad is also basically known as Foreign Exchange.
Forex Trading refers to buying a currency pair at a certain price and selling it when the price has increased or decreased resulting in profit or loss. The trading is done through a trading partner or broker in a specific platform that replicates the ongoing trends of the global market.
Who controls the Forex market?
The Foreign Exchange is a global or international market that has the sole purpose of exchanging currencies of different countries for practical purposes or mostly trading purposes.
Well, the Forex market is decentralized, which means there is no central authority to control it. So, the exchanges do not involve any third party besides the buyers and sellers who agree to exchange the currency at a certain price.
However, the forex market is run by a renowned global network of banks which is present in 4 major trading centers in different time zones. These countries are London, New York, Sydney, and Tokyo. As there is no single location, one can trade over different currencies 24 hours a day.
How much can one make with Forex Trading?
This is the first question that arises in every newbie entering the Forex market now. Well, the right answer is none can predict the exact margin of profit of loss from Forex trading,
Although it is always on the air that Forex traders earn an inch of bucks every second only with trading, it is nothing but a misconception. Some traders earn a good amount of profit, but they start slow with small amounts and play slowly to make consistent gains that altogether form a good amount at last.
Well, it is also true that a fair amount of luck is also required for earning profits in the Forex market as the market is often unpredictable, being volatile. So, in the present scenario, a trader who is making a decent 2-3% of the profit from Forex is a good trader and anything beyond that is professional for sure.
Apart from this, you may come across several platforms that claim a whopping profit percentage, which is nothing but a scam. Yes, there are some websites out there on the Internet spreading the net to catch the beginners with such compelling claims.
Choosing the right Forex Broker
The main reason why people get the intention about Forex trading is a scam or not legit is the fake platforms. One can easily find a ton of platforms that manipulate the information of the original forex market in the display chart. There are also cases where the wallet that is provided by the platforms is compromised by the website owners. You should read reviews first. Like this markets.com review from tradefx is a perfect example of highly professional review.
On the other hand, several genuine and reputed platforms are also present on the Internet that provide genuine information and transparent trading ways.
Forex trading is 100% legit unless you are using the right platform that displays proper information and gives a good trading experience with a reliable interface. So, if you have succeeded in finding a genuine platform with all the tools that a trader requires to forecast or trade with, you can indeed get the expected profits using your trading strategy.