Which Forex Trading Sites are Reliable/Legit?

What is Forex Trading?

Forex, also called foreign currency trading or foreign exchange trading, is the process of exchanging one currency for another, generally for commerce, trading or tourism. It is also a sought-after method for parking money when equity markets are a volatile example: a stable Japanese yen. 

A 2019 report from the Bank of International Settlements (BIS) said the global daily average volume of forex trades stood at $5.1 trillion, which makes it the largest financial market in the world.

Forex is a marketplace for exchanging one currency for another, which are generally in pairs. For example EUR to USD or INR to USD.  

What are the Risks of Foreign Exchange Trading?

In the UK alone, victims reported an average individual loss of £14,600 due to forex scams, the UK Financial Conduct Authority said in 2019. Between 2001 and 2007, over 26,000 US citizens were defrauded to the tune of $460 million, says CFTC.  

The risks in general are:

• Forex trading is generally not meant as an investment tool, but for reducing the risk of currency fluctuation.
• No central marketplace or exchange for forex trading, so no central authority.
• Local regulators may register forex traders but quality standards differ and consequently the level of investor security

How to recognize a Forex Scam?

There are several ways to recognize a possible foreign exchange trading scam:

• You are contacted by an unknown person who knows a ‘magic’ way to make money using forex trading.
• Claims you will get profits from the news that is known to the public for some time.
• Word of mouth referrals or emails from friends and relatives.
• Promises that there is no downturn or risk in forex markets
• Requests you to transfer cash quickly or rushing with the investment prospect
• Difficulty getting background info on the broker

We have previously researched a forex certification scam by IFMRRC.

Apart from the basic checks to see if a website is a scam, also check if the company is certified by the national financial authority or regulator. 

Reliable Forex Trading Sites

Here we are listing a few forex traders and brokers that have proven to be reliable in the past. We have checked if they are certified by the national regulator.

Disclaimer: As things change, always do your own due diligence by checking new reviews and if the broker is still certified by the national regulator. Be aware that forex trading remains a very high-risk venture, even if the broker is legit.

Some of the websites listed above are sponsored links. We receive a small advertising fee. This helps us to keep Scamadviser going.