The FX market is a decentralized place where traders exchange currencies for different reasons namely speculation and hedging. A portion of the traders are called retail traders and they are the ones who are not tied with a financial institution, like you and I, people with some extra funds that they are willing to risk. Unfortunately, we must move through a labyrinth of misinformation and dishonesty before we see trading as 1 + 1 = 2.
In this article, we discuss the main scams and how to avoid them before moving on to the best practices and how to preserve long-term capital growth. Starting out, I have neglected many of the below and I would have been so much better off had I respected those rules.
A scam is a fraudulent attempt to steal your money without giving you something in return of equal money. For example, I come to you asking you for $1 in exchange of giving it back 2$ next week only to realise seven days later that I have vanished with your $1. Scams come in many shapes and forms which are discussed below. These should form a basic barrier before deciding to trade.
Important Disclaimer: There is a huge number of…
