Forex Trading – The Downsides of the Forex Trading Industry

Four years ago when you strolled down the streets in Kuala Lumpur, on a hot afternoon break, and asked random people if they knew about FXCM Markets trading, most would have answered with blank stares. Only the investment-savvy and people in banking would understand what you were talking.

Fast forward to 2009: I have discovered that forex trading is well-known and understood by many people. This is true even for people living in cities. The internet is responsible for this. Online forex trading has opened up the currency markets to the masses in a way that was never possible before. This phenomenon does not affect just one country but the entire globe. Many people from Russia, China, Africa, as well as smaller countries like Sri Lanka have been experimenting with the forex market via computers.

Because forex brokers are all competing for a piece, and with increasing attention being paid every year to the forex markets, it is no surprise that they are. This has created stiff competition among them and brought the requirements to open an online forex trading account to ridiculously low levels. A forex trading account can be obtained from the major forex brokers for $20. Twenty American dollars are approximately 68 Malaysian rupees. In this country, 68 Ringgit won’t buy you a nice steak dinner. Forex accounts can easily be obtained for less than a dollar.

Forex trading can now be done by anyone who has money and a computer with broadband Internet. The scammers will always be found in any business activity that has great potential. They have never been one to be left behind and have climbed from the shadowy places they call home to prey only on the fortunate, the ignorant, and those who are lucky. Their question seems to be this: Would you consider attending a 3 Day Course that will enable your to make $1000 USD each day trading currencies?

Their preferred venue is hotels, where they book expensive conference rooms to make their sales pitches. I have attended at least 30 seminars. The vast majority of these people didn’t seem to know what they were talking. They were there to promote a product that was already repackaged. Some of them were not even interested in forex trading. They promote their courses via the internet, newspaper and word of mouth. What’s the cost? A 3-month course costs as much as $6000 ringgit