Is It Legal To Trade Forex? Is Forex legit?

Just about every nation has its own currency, and Forex provides the opportunity to exchange them across a global marketplace. The word Forex is short for ‘foreign exchange’, although it’s also known as FX, and it’s reckoned to be the largest worldwide market of liquid assets.

How is Forex different from the stock market?

Unlike the stock market, there’s no centralised marketplace for exchanging foreign currencies. The process of exchange is known as OTC, short for ‘over the counter’, requiring every transaction to be conducted electronically by traders across a network of computers.

This also applies to Forex CFD trading, which you can do at CAPEX. We, at CAPEX, are a CFD broker with more than 2,100 instruments in different markets, including CFDs on stocks, bonds, Forex, ETF, cryptocurrencies, commodities, indices, and blends.

Apart from some time off at the weekend, Forex trading goes on around the clock for five and a half days a week, every week. The trading day starts in Australia and New Zealand, moving on to Asia and Europe before shifting across to the US. As there’s always trading going on somewhere, there’s scope for volatility as the markets react to global events.

Currencies are traded against each other in pairs, and there are loads of options, although most first-time traders start off with a major currency pair, such as Euros and US dollars. Currencies are abbreviated down to three letters, so this particular example would be defined as EUR/USD. We’ve got the concept of currency pair explained in more depth in a separate article, if you’d like to know more.

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INTRODUCTION TO FOREX

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13:20

FOREX INDICATORS

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13:20

FOREX CANDLESTICK GUIDE

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14:38

UNDERSTANDING AND USING FIBONACCI

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04:20

FOREX CHART FORMATIONS PATTERNS

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14:27

TIMING IN FOREX

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06:20

CRYPTOCURRENCIES

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82:25

It is now time we address the question, ‘Is Forex trading legit?’ And although the answer is generally a resounding ‘Yes’, that doesn’t mean there aren’t some pitfalls to be aware of. Unfortunately, not all trading platforms are equal, so there are plenty of scams to watch out for. We’ve highlighted the principal ones here.

Get rich quick schemes

Some brokers will promise you that there’s a fortune just waiting to be made, assuring you that they can help you uncover it. But there are no guarantees in Forex, and no shortcuts to success. The only sure-fire way of ensuring successful outcomes is to learn as much as you can about trading. At CAPEX, we’re never short of information to help you, whether you want to read helpful articles or watch instructional videos.

Managed accounts

It might seem far easier to commission a Forex broker to trade on your behalf, but this is another pitfall to be very wary of. There are plenty of unscrupulous brokers who will promise to increase the value of your deposit, only to use your funds to finance their own lifestyles.

It’s much better to learn how to trade yourself, so you can make your own decisions about what to do with your funds. Here at CAPEX, we’re ready and waiting to help you make the best choices about how and where to trade.

High Yield Investment Programs

High Yield Investment Programs, also known as HYIPs, tend to promise fantastic returns from a minor investment, which is an incredibly tempting prospect. But many of these programs are nothing more than elaborate Ponzi schemes. Money from new investors is paid to previous investors until the funds have all disappeared, at which point everyone is left high and dry.

It’s scams like this that lead some people to question whether Forex is legitimate, but we wouldn’t want that to put anyone off. With our useful CAPEX tools and resources everyone can have the chance to learn how to trade Forex at a pace that suits them. We can’t guarantee that you’ll make a fortune, but we can guarantee a safe, fair and legitimate trading experience.

Signal sellers

Signal sellers offer insider trading tips for a weekly or monthly fee. Even experienced traders can be conned by signal sellers, so read the CAPEX tutorials to find out how to trade successfully on your own, without the need for a fee. Remember – if it sounds too good to be true, then alarm bells should be ringing!

We’ve established that there are quite a few pitfalls to be aware of when Forex trading, so now we’re going to give you advice on how to avoid them. Is Forex trading legal? It most certainly is if you go about it in the right way, so here are some tips for staying safe as you trade.

Do your research

Whether you’re looking for the best Forex trading platform or the best Forex online broker, do some research before signing up, and don’t just sign up to the first website you come across. Take your time and examine a few different sites, comparing what they have to offer, and checking that they provide the level of help and support that you need.

Use a reputable trading platform

Not all Forex trading platforms offer the same benefits, so take your time coming to a decision. Here at CAPEX, we offer our own bespoke platform – the CAPEX WebTrader – or you can opt for MetaTrader 5, also known as MT5.

Learn about Forex trading

The more time you spend studying Forex, the better the quality of the decisions you’ll make. At CAPEX, we’re committed to providing you with high-quality information that will further your knowledge. Training videos demystify the world of Forex step by step, and you can even practise trading on our demo platform as you’re learning. Whether you want to know more about choosing currency pairs or you’d like to learn how to trade CFDs, we’ve got all the information you need to become a successful Forex trader.

Read what other people have to say

It’s well worth taking the time and trouble to read through reviews of trading platforms and see what other people have to say. This can quickly show up problems or issues, allowing you to dodge disreputable sites.

Never trade more than you can afford to lose

Although we say the answer is a resounding ‘Yes’ to the question, ‘Is Forex legit?’ That doesn’t mean you should view it as a guaranteed way of making money. The value of currencies can rise and fall astonishingly quickly in some cases, and returns should never be relied on.

Using the CAPEX demo trading platform with virtual money will give you valuable insights into how Forex trading works. Once you’re satisfied with your demo trading results, you can move onto one of the main trading platforms and start trading for real!

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