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Is Forex Trading Legit?
I see way too many people asking the question, is forex legit? Is forex trading actually legit?
It seems like a strange question at first, but when you consider how many scams and misinformation there is out there on the topic of forex trading then it seems fair.
Yes, there are many forex scams out there – it’s worth learning how to avoid these at all costs.
If you were an absolute beginner looking for information on forex trading, you’d likely come across lots of ‘forex trading millionaires’ and ‘forex robots’ that promise millions of dollars in profits.
How do you get past all the bullsh**? Is forex legit?
In this post, I’ve decided to give a full and (hopefully entertaining) answer to whether forex is legit or not.
So, is Forex legit?
There was a question posted on the r/scams subreddit recently, titles “How legit is forex trading?“
The question is pretty straightforward. The poster says that his brother is making large claims about the money he’s making from forex trading and is trying to figure out what exactly forex trading is.
The answers were actually quite interesting. (If you’re interested, you can find the post here).
As you can see, most users posting don’t have personal experience but have friends who do.
However, one user posted an answer that I think sums it up perfectly.
From now on, when someone asks me ‘Is Forex Legit?’ I will reply with something along the lines of:
This is so, so true.
Forex is labelled a ‘scam‘ because of the thousands of crappy products out there that are solely designed to screw you out of your money.
Scams like this:
If it weren’t for products like these, then forex would likely be looked at the same way as the stock market.
He wrote more:
He makes some really good points, such as:
- forex is hard to learn. I struggled for years to figure it out, which is why I eventually decided to create this website – for beginner traders who just want some guidance to learn the ropes.
- simulations are a great way to get involved in forex trading.
- if you are looking to learn, do not spend thousands on courses or training programs. While there are some great ones out there, you will be just fine with a $50/month trading program, or if you have the money, a course in the range of $250-500… any more than that and you are getting screwed.
- most forex traders do work years and many will give up or never make real money with it. In my opinion, these are the people who aren’t willing to put in the time to learn.
- the real winners are the institutions. This is true (unfortunately) for most industries, and it makes it difficult to find your way and succeed, but it is absolutely possible.
The biggest takeaway from this should be that while forex trading is 1)hard to learn, it is 2)not a scam.
So, yes, forex is legit.
I would go as far as saying forex trading is very legit.
All you must do is be smart in navigating all the products and software out there – do your research, and don’t spend money that you aren’t 100% confident in (feel free to check out my reviews page, where I do full, unbiased reviews on popular forex courses and products).
Forex is not a get rich quick scheme, and you will not be a millionaire overnight.
That said, you can make pretty good money and, thanks to high volatility, you can do it very quickly.
If making money was easy, everybody would be rich.
A similar question was asked on Quora, ‘Is online forex trading really legit?”
A user posted another answer that I found interesting:
“The number one ‘scam’ you’ll find on Forex is UNEDUCATED TRADERS.
Honestly, he’s got a point.
Why is forex so popular?
There’s no denying that forex trading is huge – not just in popularity between traders, but volume.
Forex is the largest financial market in the world, boasting a daily volume of $5.1 trillion.
If this number doesn’t mean much to you, it will when compared to the stock market:
As to why forex is so popular, there are a lot of reasons, including:
- volume – as mentioned, since there is so much trading volume in forex, it means there is a lot of opportunities to make some money.
- liquidity – higher volume means higher liquidity, which also means lower spreads and transaction costs.
- 24-hour markets – this is a big one. Since you can trade (basically) all day and all night long, 5 days a week, there are more hours in the day to make money.
- low commissions – forex brokers are competitive and will take very low, if not any, commissions at all. This means more money in your pockets.
If you read those reasons above me about why forex is so popular, you might have noticed a common theme – all the benefits of forex trading (especially when compared to the stock market) have to do with money.
Why is forex so popular?
Because there’s more money to be made, at all times of the day, and it can happen faster than it can with other financial markets.
There’s also another big reason – you can get started with forex trading for much less money than the stock market.
While it is not preferred, you can truly start trading forex with just a $100 (I started with this much and slowly grew my bankroll).
Anyways, if you’re reading this and getting all excited, good! You should be. But, don’t get ahead of yourself now – many novice traders have let their excitement get ahead of them and wasted way too much money in the markets before they were ready.
It’s really all about learning how forex trading works and starting only when you’re ready – forex is hard.
Why is forex so hard?
Yes, forex is hard… but not too hard.
One of the reasons so many people love trading forex is because the markets are very volatile – the currency prices in the forex market change rapidly, sometimes by very large amounts.
This means you can either make huge profits very fast or lose lots, very fast.
It can be difficult for beginner traders to learn how to read charts and economic news to gauge where a certain currency’s price might be going… this is all part of being inexperienced.
YOU WILL LEARN.
Some people dump money into a broker and start trading, and some get lucky – most will fail.
Most traders who fail are impatient.
In fact, I’d say most people who call forex a ‘scam’ and say forex is not legit are the ones who failed because they expected profits now.
Again, this is the fault of the scammy part of the forex industry who claim that anyone can ‘get rich quick‘.
Don’t rush yourself – learn how forex trading is done.
If you do take the time to educate yourself on forex trading and the markets, it can turn into a beautiful and lucrative relationship for both of you.
Can forex be a full time job? Can forex trading be a career?
Yes – I am living proof of this.
And I must say, a great job it is!
I wake up and don’t have to take orders from anyone.
I am my own boss, and trust me there is no dress code in my home office.
One of the reasons I pursued forex trading as a career is because I didn’t want to let anyone else be in control of what I do every day, and I hated office work.
Obviously, there are some downfalls of working from home, as there is for trading forex full time, such as:
- no consistent salary
- easy to get lazy (sleep in, not work, etc.)
- it can get lonely
However, the benefits far outweigh the downsides.
The biggest benefit to being a full-time, online forex trader?
There is no cap on my salary.
I have days where I make thousands, and there are very few career paths in which I would have been able to pull this off.
Anyone can do it, as long as you put in the time to learn.
I’m not rich (far from it) but, I do make a high six-figure salary, and I am quite young.
The future is bright.
Can forex trading make you rich? Can forex trading make you a millionaire?
Short answer, yes – forex trading can be very profitable.
Most forex traders fail in the long run.
This is just the reality of the game – the same is true for stock trading, angel investing, etc. It just simply isn’t something that everyone wins at.
It is also true that most people who fail refuse to put in the time to learn how it’s done, and are okay with dumping thousands of dollars into a market that they truly have no business with.
Forex trading can make you rich, and forex trading can make you a millionaire – it has for many people (check out our post about a guy who made a billion dollars with a single forex trade).
All you can do is be the best trader you can be, and take the time to learn how it’s done.
The money will follow.
Learn To Trade Forex
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Is Forex Legit?
Yes, forex is legit – however, there are plenty of scams and shoddy products out there in the industry that are not worth your time or money.
I’m a full-time forex trader, happily making money from the comfort of my own home.
I help others find financial freedom and success with forex trading.