What is Forex? The whole truth about forex!
What is forex and why there is so much talk about it, have you ever wondered about it? Today we will answer these questions and tell you the whole truth about Forex. To begin with a definition of this market. So, Forex (Forex, FX, from FOReign EXchange) is a "market of interbank currency exchange at free prices (i.e. quotations are formed without limits or fixed values)" (wikipedia).
- 1. Does a forex broker withdraw money to the market? No.
- 2. Are all forex brokers crooks? No.
- 3. Responsibility of the broker or does the broker keep his promises?
- 4. Can I choose a reliable forex broker? Yes.
- 5. And yet, how to find an honest forex broker?
- 6. Who needs widespread advertising for forex?
- 7. Minimum investment in forex trading - is it right?
- 8. Is it easy to trade forex? No.
- 9. Is forex so accessible? No.
- 10. The whole truth about forex? What is it like?
- 11. reviews
In contrast to the Western understanding of the term as a set of currency transactions, in our country it is used to refer to speculative currency trading through commercial banks and dealing centers.
Does a forex broker withdraw money to the market? No.
Today, however, the Internet is teeming with information about forex trading The trading centers are a scam, and the dealing centers are a kitchen. There are enough reviews about traders being cheated by placing positions different from the market positions (as described in the blog, for example). voronkov-kirill.livejournal.com), as a result, speculators do not work directly with the market, but do not even go beyond the broker's terminal. To see this, traders themselves compare the quotes on the market and in forex brokers' terminals, but even this information does not help them to get the truth.
This is because the trader's money, once it gets to the broker, is not actually withdrawn anywhere else. You should know that. None of the brokers, whether large or novice, take your money to the financial market. Trading at the broker, you play against him and your profit is the company's loss. That is, in this form, all forex brokers are kitchens.
There are more and more negative feedbacks about brokers who take away the last money, disappear and do not contact you. There is an opinion that besides Forex brokers at the market there are also dealing centers (DC), which play against the trader, cheating him. And the negative comments from traders refer to them. Dealing centers (or still DCs) - are companies that provide their clients with access to forex, acting as intermediaries in their trading operations (this is for example Forex4you (go to site), RoboForex (go to site), AMarkets, (go to site), InstaForex (go to site), MaxiMarkets (go to site) etc.).
But, if all brokers are DTs and kitchens, maybe not to trade on Forex at all? Let's try to answer this question in our article, using the data we studied from the Internet.
Are all forex brokers crooks? No.
Honest brokers exist. Otherwise, there would be no concept of "forex", this market would simply be banned. It's also worth remembering that serious Forex brokers are subject to the laws of the regulators, which oblige them to follow the rules, to pay income to traders, and this money falls into the pockets of traders. Therefore, constant huge earnings will not be guaranteed to the trader, it is costly for the company.
However, the leading broker is important to have a strong trust relationship with the user, so he gives traders the opportunity to earn income. There are also real positive reviews on the web about the work at reliable brokers, we will tell you about it further in the article.
Forex does not tolerate unprofessionalism. Carefully study the information about the broker if you want to achieve success in trading.
Responsibility of the broker or does the broker keep his promises?
Broker regulation is a controversial issue, many brokers have it, but does it help the trader in reality? Not always, and the reviews on the network prove it. A decent forex broker, of course, has regulation, and more than one, but he conducts his activities in such a way that the client remains a winner.
You must understand that when you sign a contract with a broker, the text of the document may state that the company takes no responsibility for terminal failures, trades, losses and risks. That is, for almost nothing. At the same time, all disputes, according to the contracts, you can solve in the amicable court.
And here you have not withdraw money persistently silent to your indignant letters or begin to be rude, you write statements to all authorities: the sites of Western regulators (Cysec, official website; Fsa, official website; BaFin, official website etc.), official website etc.), but nothing changes in most cases, because it is you yourself without pressure from the outside signed the contract and did not familiarize yourself with its contents. Such cases in court are some of the easy ones, it is your signature on the contract and you put it voluntarily. Learn about why you need Forex broker.
Forex is a lot of risks, except for income. Remember that risks are inevitable.
Can I choose a reliable forex broker? Yes.
But you have to do some serious work: study the ratings, reputation, reviews, length of service. And this is where some naive novice speculators fall for the bait of swindlers. Searching for the intermediary, the trader chooses the most profitable variant, he is bribed by conditions, bonuses, minimum deposits.
You have to understand that industry leaders don't need such marketing moves, but smaller companies have a lot of them. You can be a knowledgeable trader, pay enough attention to research of a proven trading terminalYou may be surprised again by the situation of "no money, no service, no professionalism", as a result of your trading. Was there forex?!
Forex does not tolerate naivety. Carefully study the offers of brokers, weed out dubious ones, trust your money to reliable brands.
And yet, how to find an honest forex broker?
Yes, it is difficult to find a really serious broker who does not cheat and allows you to earn. You can explore a lot of thematic websites, where the ratings with positions are indicated, and each resource has its own, although the high positions are usually taken, of course, by those companies that we all hear about. When choosing a broker, you should know that no one will give you everything at once. All and at once promise to give small brokers, little-known brokers, which lure more people with advertising and leave them without money.
They also deliberately besmirch the reputation of competitors by creating scandals (for example, such a situation occurred with Alpari, read it on the portal brokers.opentraders.ru). Therefore, when you start to study the reviews of the rating leaders, you may see a lot of material from obvious competitors. Often small brokerage companies work with freelancers for their PR, to intentionally publish negative reviews.
This also includes cold calls from such companies, which, having purchased a database with phone numbers, call everyone and offer to trade on forex, describing its infinite benefits. How won't a big self-sufficient broker behave? He values his reputation, his stability, his reliability, his regular clients, he thinks over a calm, mature marketing policy, promotions, promises only what he is really ready to give. In this case let's also say, "the smaller the broker, the more likely it is to cheat and defraud". Although there are those companies that are earning their reputation slowly and gradually, honestly and without "black tricks".
Forex does not tolerate a lack of ability to think and analyze. And, if you find it difficult to understand dubious offers, reviews and the reputation of brokers, how will you analyze the market?
Who needs widespread advertising for forex?
Today we are bombarded on all sides with a huge stream of aggressive advertising about the possibilities of forex trading - it is easy earnings on the Internet, which will immediately and forever change our lives. All it takes is to start trading. Brokers hold big promotions and give cash gifts to traders already for registration. And really, why not take advantage of the offer. That's why every day someone, buying the advertising, registers with another fraudster, without looking at the reviews, the availability of the license, the content of the contract, because "the action is running out of time" and after the transfer of money to the broker's account the most interesting thing begins, under the mask of a Forex broker turns out to be another swindler.
Forex does not tolerate false expectations. Learn to distinguish scam brokers and work only with proven companies.
Minimum investment in forex trading - is it right?
After demo trading, having chosen a forex broker, speculators usually move on to the real market. Most often it is possible to start trading with the minimum amount ($1, $10, etc.), which needs to be transferred to the account in order to start earning real money. It is not much, students, pensioners, housewives have such money, they transfer it with ease to their account and lose it with ease as well.
The trouble here is that having lost money, the trader will not worry about it too much and will invest this minimum amount again, lose and try to trade again at a good opportunity.
Forex does not tolerate disrespect for money. Do you want to start making money in the market? Take action, improve, test, and don't just blow your pennies.
Is it easy to trade forex? No.
Aggressive advertising often imposes on the trader the ease of high earnings through forex trading. It's hard not to take advantage of that. The problem is that the market is unstable, difficult to predict and what will happen to it in an hour is difficult to predict, so it is difficult and risky to make money from investing your own money. If you are seriously prepared and have an impressive amount of theoretical and practical knowledge and skills, you will be able to work in the market.
And if a trader has no experience in analyzing the market situation? Yes, that's right you think, there are indicators, strategies, trading signals. But there are reports that the signals in the broker's terminal do not coincide with the market quotes, and it seems that you have placed a position, but it either jumps by itself, or stop losses do not trigger, positions close by themselves and you lose income.
Forex does not tolerate laziness. Forex is work, and it's hard enough. That's the only reason why there are not so many really successful traders on the market who give it all their free time.
Is forex so accessible? No.
Everyone loves freebies, easy money, if the opportunity of easy money is presented, immediately rush to it, and in the end lose. For example, various pyramid schemes and lotteries are widespread in world. The desire to find a way to earn a simple income, freelancing, is fueled by the availability of the Internet, which every family has.
Forex can be confidently considered a freelance, but the fact that it requires serious training, knowledge and skills, not every active trader suspects.
Forex does not tolerate freebies. Forex is a job like any other. And, if this field is interesting to you, you have all chances to achieve high results from trading. Learn how to properly forex trading.
The whole truth about forex? What is it like?
The whole truth about forex, in fact, is that you can make an income here, and not a bad one. But to do that you have to do a lot: study, read books, analyze, think with your head when reading reviews, test a demo account, start trading with stop-losses, take-profits, CFD contracts and the rules of money management.
- 1 July 2020 at 12:34