Forex trading (foreign exchange trading) has always been a lucrative opportunity for those looking to invest their money.
Cryptocurrency is the far-better choice when it comes to making such investments. And people all around the world are currently investing in crypto and NFTs because of the more lucrative opportunities it provides. At present, investing in cryptocurrency is one of the most widespread financial trends. However, dealing with crypto can be difficult. Unless you are fully aware of how blockchain works, investing in crypto might not be such a good idea.
The same goes for investing in shares. Here, people lose money frequently because of how unstable the share markets can be.
Forex markets, however, are comparatively a lot easier to navigate through. They are less unstable as well. Thus, people should feel more comfortable with forex than any other form of trading. And for all you newcomers out there looking to invest in forex in 2022, here are a few vital things you should know.
How is the Forex Market Doing?
Forex is one of the most traded markets in the world right now. Over the years, it has grown bigger and will continue to do so.
However, the COVID-19 pandemic did slow things down. Things did improve in 2021 though. Bank of England’s 2021 Forex report suggests that turnover reached $3 billion in April of that year. This was a 16% increase from October 2020.
2022 looks like a bright year for the US dollar. In January 2021, it was trading at 89.41 but reached 96.95 in November. And although the Omicron variant is causing havoc across the world right now, you can expect things to improve. Experts predict a closing value of more than 97 for the US dollar near the end of 2022.
Is Forex a Scam?
A common question arises among newcomers – is forex legit or a scam?
The simple answer to this is that forex is not a scam. It is as legit as trading can be.
Many regulatory agencies are continuously working to make forex trading safe for the masses. They keep things in check, oversee trading and policy implementation, keep track of suspicious activities, and so on. Thanks to their continuous efforts, forex trading is usually safe from scammers.
However, those who call forex a scam have good reasons to do so, but that is mostly because of brokers or unlicensed platforms. These entities are responsible for scamming people, not the trade itself. So whenever someone calls forex a scam, they are mostly referring to these entities, and not the trading system itself.
What If Someone Scams Me?
Forex trading itself is not a scam. However, there are many entities out there who can scam you via forex trading. Be it forex brokers or trading platforms. There is always a chance that someone will try to scam you.
These scams are more prevalent in trending markets. Take cryptocurrency for example. Scammers try to take advantage of crypto’s mystic appeal and come up with creative ways to scam people. The latest of these scams was when scammers ran away with over $3 million when they fooled people into investing in the Squid Game Crypto scam.
A forex scam will not be as elaborate as the Squid Game one. As long as you know how to avoid such scams, you will be fine. Ideally, be careful while choosing a broker or trading platform. That will keep you safe from scams.
However, in case you do fall victim to a scam, there are always ways to recover your lost funds. To recover lost money, your best bet is to get in touch with a forex trading scam recovery service. These services will first review your case. Afterward, they will gather the necessary evidence and then confront the entities. Finally, they will pull all the strings necessary to recover your money. Of course, it is always better to be safe. These services will still be there to help you out when necessary.
These are all the things you newcomers should know about forex trading in 2022. As you can tell, the details are very basic, and that is just how simple forex trading is. Know that forex is not a scam. Just be careful while playing your cards, and do your research before working with brokers and trading platforms. Hopefully, you will have a good experience in trading forex.