What is Forex, and how it works? The over-the-counter market, also known as the foreign exchange market, is a worldwide, decentralized market for currency trading. This market determines the foreign exchange rate of any currency. It includes all types of currency purchases, sales, and exchanges at current or fixed rates.In terms of exchange volume, it’s out and away from the most important market within the world, followed by the credit market.The main players during this trade are the larger international banks. Money centers around the world function anchor for commercialism between many patrons and sellers round the clock, except for weekends.Since currencies are usually changed in pairs, the interchange market establishes a currency’s relative worth by crucial the market value of 1 currency once purchased with another. for instance, one U.S. greenback is value X CAD, CHF, JPY, and so on. The interchange market operates on several levels and is mediated by monetary establishments.Banks rely on a limited number of finance companies known as “dealers” to handle vast amounts of foreign exchange dealing behind the scenes.Since most foreign exchange traders are banks, this back-room market is often referred to as the “interbank market.” Hundreds of millions of dollars can change hands between foreign exchange dealers in a single transaction.Because of autonomy when dealing with two currencies, Forex has few supervisory bodies that oversee its operations. By allowing currency conversion, the foreign exchange market aids international trade and investment.For example, it allows a U.S. company to import goods from European Union member states, especially Eurozone members, and pay in Euros, even though its revenue is in U.S. dollars. It also encourages direct speculation and calculation of currency values and carries trade speculation based on the interest rate differential between two currencies.How can I start trading on Forex?First thing first, it will be good to learn about currency pairs. There are seven major currency pairs on the forex market. The most widely exchanged currency pairs account for nearly 80% of total trading volume on the forex market. Low volatility and high liquidity are common characteristics of these currency pairs. They are linked to well-managed economies, are less prone to coercion, and have smaller spreads than other pairs.After you get this, you can choose your pairs and start learning to trade. But, the question is, how to do that?It is suggested that you choose a licensed, supervised broker with at least five years of experience. You may be certain that your broker is legitimate if they follow regulatory guidelines.You can exchange if you have an active account, but you would need to make a deposit to cover the costs of your trades. It’s called a margin account.A trading master is not what you can become. It requires time, experience, and patience. Many so-called brokers will first give you a demo account, so you can get into trading and then start doing it by yourself.It’s a widely spread business, so there are many webinars, meetings, courses, etc.But, you MUST have one thing in your mind. A place where you can make big money is also where you can lose that much.There are many people and organizations on the Internet that are promoting themselves as Forex coaches or masters. They provide you signals, telling you how much you need to give as a deposit, and trying to help you because you are paying them to do so.As there are good angels, there are also and bad angels.Internet is full of scammers in all realms, but a realm where a big amount of money is involved is like a country of scammers. They are looking for new traders with no experience and knowledge to be involved in a trap and get their money.How to avoid Forex scams?As always, there are good scammers and bad scammers. They are all bad, but a part of them doesn’t know how to do that. So, what are some things that can tell you THIS IS SCAMMER?There are several red flags, so let’s start. RED FLAG number 1 – VIP groupsVIP groups with forex signals can be either a big win or loss. Mostly it’s a loss. Just think about it. If I have signals that bring me a huge amount of money, why would I share that with you for FREE? There are no good angels, so this is a SCAM! RED FLAG number 2 – BrokersIf you find a legit broker, that is a good place to start a business. But, how to know if the broker is legit?, check his info, get informed about his name, check his website (if it exists), if the website doesn’t exist, RUN! There is no legit broker without a legit website.There are a lot of tools on Google that you can use to check if the site is safe for use or not. RED FLAG number 3 – PhishingIf a CEO, director, or any big company contacts you and says that you have to do something with your private information in 24 hours, RUN. It’s surely a scam, don’t answer this email/message.RED FLAG number 4 – Private informationDon’t ever give your private information to anybody, especially if you see a person for the first time in your life. You shouldn’t share information like I.D., bank account, credit/debit card info, and all other sensitive information with anyone on the Internet. RED FLAG number 5 – Fast money gainAt the moment, when someone says that you can make a huge amount of money just if you do something or if you give him money in advance, it’s a huge red flag. If money could be made that fast, everybody would have been rich. These are just some of the main red flags that can tell you that you have a scammer around you. Try to avoid scams as much as you can.To end up a story, I’ll tell you about one scam from which you can know how scamming works. Tips:1. Often demand proof of outcomes in the form of validated trading statements. The person selling you the possible scam must demonstrate that they will deliver on their promises. A well-known platform for checking trading results is myfxbook.com.2. Don’t give out business or financial information to strangers over the phone or on the Internet, no matter how persuasive the person appears to be. It’s important to remember that it’s their job to deceive you.3. Learn to trade on your own; it will take time and effort, and success is not guaranteed, but it is the most effective way to escape being conned. Most popular ways of scammingPyramid schemeYou have probably heard about the pyramid scheme at least once. It is highly used in gambling games or any other game involving real money.Pyramids in Forex are working similarly, but they are much more dangerous.In gambling, you give a higher bet every time you win. For example, today I won a ticket with a bet of 100$, tomorrow’s bet will be 200$, after that win, it will be 400$, etc.Forex pyramids are working like this, but with people. Whenever you get a new member in, you become higher in the pyramid. It seems like affiliate marketing, except that you can get in jail and become broke. The owner of the forex pyramid scheme does not make money by trading forex by rather from the fees that new forex investors pay to join the scheme.Forex trading isn’t a get-rich-quick system. Forex trading is a legitimate business, similar to stock or commodity trading, with the primary goal of trading, purchasing, and selling assets rather than pyramid share marketing to recruit others into the forex business. However, if scammy websites use multilevel marketing to sell forex products, a pyramid scheme can occur.2. Ponzi schemePonzi scheme is working along with pyramid scheme. You can’t go to jail with this scheme. When you invest in a Ponzi scheme, it isn’t investing in trading. It’s more like gambling. You invest in pyramid schemes made earlier, like when you bet on a football game. Investors got their money when new investors came into the game, and the scheme will work if you have new investors always.Some market makers allow traders to trade incredibly broad positions by providing high leverage. It increases the market maker’s benefit by increasing the trading volume cleared, but it also increases the chance of a margin call for the trader.Example: https://youtu.be/nQh9mIvHQ9IBest Forex brokers1. ForexFOREX has been a leader in foreign exchange trading for over two decades, established in 1999. A minimum deposit of $100 or 100 units of your base currency is required to open an account. Its advanced interface allows quick and accurate trading on the go, whether on a desktop, network, or mobile device. You can tailor the platform to your preferences based on your trading style.2. IGI.G. is one of the most trusted online platforms for forex trading, having dominated the foreign exchange markets for over 40 years. Its expertise is complemented by a user-friendly platform that allows you to exchange up to 93 different currency pairs. A $0 minimum deposit is required to open an account on I.G.3. HYCMHYCM is a leading forex broker in the world. It has over 40 years of trading service experience and has earned several international awards.You’ll be able to trade over 69 different currency pairs. However, Forex isn’t the only service provided by HYCM; the broker also provides high leverage, stock and ETF trading, commodity investing, and much more.4. eToroMany of the world’s most common currencies are already available on eToro’s online platform. You’ll also get extra perks, including real-time market order execution and unlimited regular withdrawals.View real-time results, use in-depth research tools, and be the first to see patterns no matter where you are. With a $100,000 virtual portfolio, you can also check out eToro’s many creative features risk-free.Story:My friend and I had about 14 years when we heard about Forex trading, and we honestly wanted some money for ourselves, so we decided to try it out. There was one VIP Forex trading group that was famous in our city. Our friends were using it too.It was enough evidence for us. We thought that it’s legit because we know people who make money with that group. We signed up and gave him money for membership. After that, he sent us a video with very bad instruction on making some applications that will bring us money; that video was so low quality and badly described, so we were trying to make that for days.Next, he said that we need to download an app for chatting (like Viber, Whatsapp), but that app wasn’t visible for police (as Signal or Telegram). So we did that too, and he gave us an invite for a group chat with all signals for trading. We were trying to catch and understand that signal for hours, he sends a signal and says that we should follow it on Sunday morning, but on Sunday morning, that signal doesn’t even exist.Even if you catch a signal, it fails, and you lose your money. We tried to contact a support team, but, as expected, one support says to go to the other, that other says to go to third, etc. You approximately lose about 10 euros per signal and barely gain 5 euros.In the end, I lost 60 euros on membership and 100 euros on trading; I gained about 10 euros in total. Don’t go into this trading thing if you don’t know anything about this as we did, and have one thing in mind, STAY CAREFUL AND SAFE.