Make Money Forex

So next I thought I could make some money trading Forex. You have all seen the ads, the sales script promising a carefree lifestyle only trading a few minutes per day. You can even trade using foolproof bots that totally automate the process of trading, one of the most popular of these is Fap-turbo. Once again I must caution the readers that I personally lost every penny I "invested" in Forex, and that its a fools market rigged by scammers, fraudsters, and big money companies that serve only to get you hooked and clear out your wallet.

What is Forex?

Forex is the trading of currencies. With brokers allowing you to leverage 10x to 100x its possible to make a lot (or lose) very quickly. Forex is considered a high risk investment, as its VERY easy to LOSE your entire investment! 

Is forex legit?

The concept of Forex sounds like a completely legitimate offering, as its just the trading of foreign currencies using an electronic broker.  There are some big publicly traded companies that offer this service as well as some smaller boutique offerings.  The industry is very poorly regulated, and is also filled with scam companies that will take your money and never let you cash out a penny, even if you do win.  

Can I make money?

You will probably lose every penny you invest.  Trades are executed in an ancillary market that "resembles" the official currency market that is really dominated by large institutional investors such as banks holding foreign currency, companies holding currency from doing business overseas, etc. Forex is a highly leveraged game, so a small movement or "pip" in the difference of a currency pair can make a significant difference  in the account balance.  Margin calls are automated and can totally wipe you out if you don't watch what you are doing.

The brokerages make their money on the spreads, plus they are nearly certainly playing arbitrage games to maximize the use of your money.  Brokers are known to "hunt your stops", delay your trades, and widen the spreads to maximize their profits at the expense of yours.  And these are the honest ones! The fake ones just STEAL from you, so make sure you do some research if you want to try gambling the forex market.

Why so many scams?

This industry is largely unregulated as it is transacted online.  You are often doing business with a foreign corporation which is in a country with laws vastly different than those in the United States. While there are legitimate companies that trade forex, think of it more as a casino than a stock trading site although the  charts and research on some of these platforms are impeccable!

Live vs Game account!

A demo or game account doesn't behave the same as a live money account.  In demo all transactions are instantly accepted regardless of market, whereas in live mode your transactions must actually process.  This is a VERY big difference.  I was able to "perfect" a strategy that banked hard money in Game mode, but on a live account it cleared out my balance in just a matter of a few short days.


Who really makes money?

The companies where you trade make their money when you lose yours, in a stock market things don't quite work this way, the brokers typically make commissions when you trade, rather than banking on the concept of you losing everything.   A new trend is allowing professional traders to manage your account.  While these professional traders may get lucky and make you a little money, the fees they charge (50% of high watermark gain!) wipe out most of those profits.

Forex isn't investing, it's Gambling.  You may as well go blow your life savings in a Casino, as that has just about the same odds of making money as Forex.