Is Forex Trading A Scam? | Forex Factory

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Is Forex Trading A Scam?

  • #1
  • First Post: Dec 29, 2018 12:05am Dec 29, 2018 12:05am
This thread is created to enlighten as many new traders that have been misguided about what Forex really is. And therefore, honest and responsible contributions will be appreciated from experienced traders. I believe this will definitely help many traders to know and to understand forex trading from a vast perspective.

Please tell us why you think forex trading is a scam or why you think it is not.
  • #2
  • Dec 29, 2018 12:52pm Dec 29, 2018 12:52pm
Forex market itself is a scam. You are always being tricked. But if you exactly know how this scam works (stop hunting, giving false hope .. blah.. blah), you can make money out of it. Plus, let me give my idea about binary trading.. It is a next level of this scam. When you trade forex, you just concentrate on the price only. In binary trading, you have to concentrate on both price and the time. Most retailers will see this binary trading is much easier than forex trading, but in reality, the wining probability is further reduced by introducing another dimension (time).
  • #3
  • Dec 29, 2018 9:32pm Dec 29, 2018 9:32pm
Patience, together with good timing, is the ultimate strategy.

Trade safe and prosper.

KP

Quoting Cdubs
FX market needs to exist however, the speculative nature which is marketed is a scam to get more retail traders in over time. Thats why the lifestyle dream is sold with free education etc by brokers. Ask yourself why and who profits. Building strategies around this realization can make you profitable
Do your homework, follow the footprints of smart money
  • #4
  • Dec 29, 2018 9:59pm Dec 29, 2018 9:59pm
This is my summing up of this game after arriving where i am today ,,, as it is something that is there day after day ,,,,
This BUSINESS is exactly what it is ,,, a BUSINESS run by the ONE POWER that is controlling it ,,,,,,
It is Extremely highly organised and 100% consistent in its behaviour ,,,,
The one and ONLY aim behind it is ,,, MAKING MONEY by THEM for themselves ,,,,
No one has the financial power to be able to challenge THEM ,, so THEY ALWAYS have TOTAL CONTROL ! ! ! ! ! ! ! ! ! ! ! ! FULLSTOP ! ! !
It is based on the basis poker machines are designed ,,,,, to give back 10% to 15% and keep the rest ,,,
EXCEPT ,,,,
Making money from poker machines is based on RANDOM LUCK ,,,,
Where as ,,,,, making money from this business is based on achieving consistency ( my standards are minimum 95% and higher ) ,,,, and is can ONLY be achieved when it is based on a deep and full comprehension of price action and its behaviour ,,,
And every swing is created with a purpose ,,,, as the market does NOT do a SUNDAY AFTERNOON PARK STROL ,,,,,
Shall leave it here ,,, as the rest of it is a very long subject ,,,, so i will NOT occupy space to even try to explain it ,, as it will require atleast 3 pages hahahahahaha ,,,,,
Cheers,
George
LOVE YOUR GAME WITH A PASSION ,,,,, WORK WITH A VISION ! ! ! ! !
  • #5
  • Dec 29, 2018 10:12pm Dec 29, 2018 10:12pm
it's both scam and not ....

scam because it's best business to open broker because you know people will going to lose money and winners rate will be low and even some brokers don't pay any thing to winners just scam them like what happened to me with NPBFX they give me no 20$ deposit bonus and i turned it to 200 and ignored my withdraw request and all i get rude replies from there support team lol ... some brokers also good and pay your profits..

second thing is: it's not scam when you really understand value of every cent in your account ... if you have 10$ in your account and you acting like that 10$ is all you have you will be very careful and you will force yourself to manage risk and you will surprise your account get grow..
but if you don't have that and you just have account with 2000$ and you don't care about value of money ... it's turn to gamble then you going to lose and deposit again and again..

third:it's not money machine forget that at all ... it's will not going to make you rich .. just forget it and be realistic..

4 people who post how they turn 10$ to 10000$ in no time ... stay away from them ... those can be very unhealthy on your account and in your mind ... because when you looking at them you will start lose trust in yourself as trader even if you have perfect result like 10% or 20% per month. then you will start try to copy them ... and as a result you will lose everything you built before ...

5: if you have strategy that work just stuck to it
  • #6
  • Dec 30, 2018 4:45am Dec 30, 2018 4:45am
Forex is not a scam, every month I perform a stable 20-30% profit.
  • #7
  • Dec 30, 2018 5:07am Dec 30, 2018 5:07am
It's not a scam but the regulators have been right all along with one of their implied intentions; the general trader really needs to be well-capitalized to survive in this business. In other words, be a so called "Eligible Contract Participant." I'm not saying you can't survive with small capital, I myself have small capital and I'm surviving. I'm referring to the general uneducated illiterate retail trader. Basically the 99% on the forums that can't spell basic words or use correct grammar even though English is their native language. You know, the ones that aren't capable of thinking for themselves and have only finished high school level education by copying from the person sitting next to them.
  • #8
  • Dec 30, 2018 5:11am Dec 30, 2018 5:11am
I like to ask people who think its a scam the question: how would the markets look like if there wasnt stop hunting and all thoose tricks?
Necessity knows no law except to conquer
  • #9
  • Edited 5:51am Dec 30, 2018 5:23am | Edited 5:51am
It depends on what you understand by "scam".

As long as brokers notify traders about risks i don't think it is a scam.

Anyways, most of the things we do in life can be considered scams, school, college, taxes, money.

90-95% of people will always lose in any domain when the competition appears

95% of traders lose money
95% of new businesses are bankrupt in the first few years
98% of people who play sports will fail becoming professionals
Just think how many people in this world are above average in any domain or even in life(money speaking). You will get more or less the same procent (95%).

If you manage to constantly win and make a living from forex trading, congrats you are the crème de la crème and you should thank to your parents for your genes

Anyway, 95% of trades on this forum lose money as well so i don't think this thread can have a different result than 'forex is a scam' so i think if we consider forex a scam we could consider life itself a big scam.

Best regards, Petru
  • #10
  • Dec 30, 2018 5:33am Dec 30, 2018 5:33am
I personally think it’s possible to win money with forex because I do (without martingale, etc...), since around 20 months, but maybe the next 20 months I will loose all the profits made..., what I want to say is that maybe the market is efficient but even so I do and did win money, only a very large sample of trades (10/20 years) could prove the efficient market hypothesis right or wrong (EMH), even me that makes money since 20 months think that maybe I am fooled by randomness therefore the randomn distribution made that I was profitable for the past 20 months, so it’s not a surprised to hear that Forex is a scam as most traders are loosing money, the opposite would be surprising, I would add that only the fool is sure.

Banks surely knows if trading is a scam or not, so why do they have traders if it’s a scam ? Because of inside information ?

Is only forex trading a scam or stock market too ?

If forex is a scam then it’s probably the biggest scam ever regarding the volume exchanged every day.

My conclusion is that if you haven’t made it doesn’t mean it’s not possible and if you won money since a few years it’s good but not enough to say it’s possible to make a lifetime living from Forex, probably that those who win money since decades from forex that could prove forex is not a scam are too busy enjoying their lives instead to be on this forum
LDFX Trading Ltd
  • #11
  • Dec 30, 2018 5:37am Dec 30, 2018 5:37am
Quoting 3ndlessHope
I like to ask people who think its a scam the question: how would the markets look like if there wasnt stop hunting and all thoose tricks?

I kind of never understood this stop hunting thing.

If, then it’s liquidity hunting, which can happen at stop loss levels of course but also at take profit levels as entry orders.

if you get stopped out on your short at 1.2 eurusd, it was maybe my long take profit level or my neighbors entry order.
LDFX Trading Ltd
  • #12
  • Dec 30, 2018 5:45am Dec 30, 2018 5:45am
Quoting tiborf71
Forex is not a scam, every month I perform a stable 20-30% profit.
That is outstanding results

May we know since how long ?
LDFX Trading Ltd
  • #13
  • Dec 30, 2018 5:54am Dec 30, 2018 5:54am
Quoting spotrate
It's not a scam but the regulators have been right all along with one of their implied intentions; the general trader really needs to be well-capitalized to survive in this business. In other words, be a so called "Eligible Contract Participant." I'm not saying you can't survive with small capital, I myself have small capital and I'm surviving. I'm referring to the general uneducated illiterate retail trader. Basically the 99% on the forums that can't spell basic words or use correct grammar even though English is their native language. You know,...
that you are a winner or a loser, it is only from your abilities.
and not from the school number..
  • #14
  • Dec 30, 2018 6:02am Dec 30, 2018 6:02am
5% or less on earth own more than 50% of earth's wealth while the 50% shares the other 50%, and last 45% of them are lucky to even own their pants

this is a fact that never changes from the beginning of humans.

all that and ppl still asking a naive questions like: is forex a scam !!!

ofc it is, like almost every business in the world, ppl kill for money, the ones who scam for money are like angels to this world

always cheers
  • #15
  • Dec 30, 2018 6:04am Dec 30, 2018 6:04am
Quoting tiborf71
{quote} that you are a winner or a loser, it is only from your abilities. and not from the school number..

I think what he meant is that with small account you take bigger risks ?

Let say you can pull 5%/month with law drawdown, limited risk, which is great but only 50usd with a 1k account so they use too much risk in opposition with a 100k account where you would live well with 5k/month.
LDFX Trading Ltd
  • #16
  • Dec 30, 2018 6:05am Dec 30, 2018 6:05am
Quoting tiborf71
{quote} that you are a winner or a loser, it is only from your abilities. and not from the school number..
You're splitting hairs, I'm speaking in general. Who would you say has more "ability," someone who spells Forex as Thooreee Exxx or Forex?
  • #17
  • Dec 30, 2018 6:06am Dec 30, 2018 6:06am
Quoting LDFX
{quote} I kind of never understood this stop hunting thing. If, then it’s liquidity hunting, which can happen at stop loss levels of course but also at take profit levels as entry orders. if you get stopped out on your short at 1.2 eurusd, it was maybe my long take profit level or my neighbors entry order.
When retails get stopped out and after that price goes into their direction they think 'money makers' (???) did that to steal their 1000 dollars account. So they start to feel tricked by 'forex gods'. Then they start developing this story about how market makers are tricking retails (something like how the snake tricked Eve).
This is just human brain basically, people will always blame others for their failures.

Stop hunt is basically double top or double bottom.
  • #18
  • Dec 30, 2018 6:08am Dec 30, 2018 6:08am
I do not know if forex is a scam but there is a lot of scammers in Forex !

Forex is definitely a tough business, the music/movie/sport industries are too, only very few win money from it, is it a scam ?
LDFX Trading Ltd
  • #19
  • Dec 30, 2018 6:09am Dec 30, 2018 6:09am
Quoting spotrate
{quote} You're splitting hairs, I'm speaking in general. Who would you say has more "ability," someone who spells Forex as Thooreee Exxx or Forex?

Maybe they are chineses
LDFX Trading Ltd
  • #20
  • Edited 6:23am Dec 30, 2018 6:11am | Edited 6:23am
Forex is like gambling its not scam u do not control the outcome. The only thing u manage is your money and if u are poor at that then its game over. We can blame anyone for losing money in forex market as it is so big but honestly u all know how it reacts during news. From that u should know it is not random its just events are random. We never know which news is going to come out and how market will react to it. Yes there is no central exchange but u know what we are doing is valuating a currency ourself right even though we are insignificant group how can there be a central exchange when there are so many countries with their own currency. Who will look after it? How will u find out if exchange is working for benefit of their own country or not ? Thats why this market is shady. However the irony is brokers most of the time will not place our trade in interbank market they are just like casino they pocket our loss. Do not believe if any broker say they are true ecn or stp. They will argue with u to end of the time but no what they really mean is they are providing ecn like service not true ecn. Still now days it is hard to cheat cause we have got thousands of charts from different brokers at our disposal they can manipulate little but not much. So for me its not random at all money can also be made just need to have strong money management following it with discipline. I believe there is no system we can follow market is too dynamic each day is fresh and anything can happen. So each day we need to adjust with market conditions.
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