Disliked{quote} FX can be a very profitable asset class provided you treat it as an investment.Ignored
- There is a tremendous amount of scientific evidence published that this is not true. Forex is a negative sum game.
- Leveraged forex trading is mostly pure gambling with several rip off layers inbuilt in the trading plattforms of retail forex brokers.
- Every participant in this game using leverage and trading without insider knowledge has a mathematical disadvantage in the long run and will lose money.
- As a retail forex trader you finance the profits and huge marketing budgets of brokerage firms, the liquidity providers, banks, HFT Algo firms frontrunning your orders and the insiders of relevant political decisions and or insiders in regards to compilation of important economic data or central bank action.
- Is it impossible to make a big profit based on luck? No - but you will run of luck for sure at one point in time.
- Is it impossible to make consistant profits with a fixed risk / reward ratio over a long period of time? No, but very hard and only with a big enough captial base and no or very little leverage. But in this case I don't consider you a retail forex trader that is aimed at as a potential customer by the highly aggressiv forex retail marketing machine.
Based on that it's all said an done. Retail forex traders with an average captial base of 2500 USD will allways be exploited to the extrems by all other market participants and especially the brokers. Either you get this or you will lose your account. So banning them to lure in new victims makes a lot of sense to the public.