Is it Safe to Trade Forex?

Forex is one of the fastest growing trend to earn huge profit via online means, however, there are also some questions involved in terms of its safety and reliability. If you are one of those individuals who wanted to join forex trading, probably, you are also asking yourself some questions such as: Is it safe to trade forex? What are the risk associated with this trading? How will these risk affect my investment? If you have such kind of question in mind, well, the answer can be volatile, but the catch is, trading forex is NO RISKIER compare to trading anything else.

Trade Forex

The Bad Side

In forex trading, a lot of brokers operate as the “market makers” and they are the one who take the opposite or flip side of your trade. So if you lose in the trade, they win. This also involves manipulating prices and unexpected declining withdrawals. Any market is dangerous, but any market is also manageable if you are prudent enough to predict what’s ahead in the market trend. Marketers are not in their best interest for you to win, and can also work in unscrupulous manner. Furthermore, you can blow up extremely fast and waste huge sum of investment if you do not know how to make use a proper money management.

The Good Side

The great side is, if you opt for large ECN (Electronic Communication Network) broker wherein the broker does not take the flip side, then you can consider it safe. Large FXM are considered safe, but make sure not to fall for ‘no spreads’ and ‘deposit bonus’. Remember that brokers are into business, so if they don’t get money from the traditional means, such as spread or brokerage, they they’ll make it another way.

Secondly, compared to other trading market, Forex market is considered as less volatile, particularly in response to the disasters that may affect currency market than you think it is. The thing is, volatility is nothing more than a ‘function of leverage’, but no one cares about the volatility of the market, instead, they care more about the volatility in their trading account.

Conclusion

Is it safe to trade forex? Yes or/and No. Yes, because you can tremendously earn huge profit if you know how to properly utilize your money, good trading plan, and choose your reliable broker. No because there’s a huge risk and uncertainties in forex trading, and there’s a huge tendency to lose millions of money if you don’t know how to take care of your investment.