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Sunday, May 10, 2009

Is the Forex Market a Scam?

Many people think the forex market must be a scam because they've never heard of it before. They assume that they're going to be ripped off if they try it.

Most people haven't heard of the forex market, though, because the average person has only had access to it for the last few years. They couldn't have traded in the forex market before the Internet made it possible.

Here's a surprising fact about the forex market: It's the biggest market in the world. In fact, it's 100 times larger than the NYSE.

It's also a worldwide market. There are several main trading centers. Some of the biggest are Sydney, New York, Tokyo, Frankfurt, and London.

This means that the forex market operates virtually 24 hours a day. So you're never locked out. You can always make your trades. This gives you maximum flexibility.

There's also no bull/bear craziness, like in stocks. You can make money when a currency is trending up or when it's trending down. You can make money in any market.

There are only four major currencies and 37 second-tier currencies vs. 8000 stocks on the NYSE and NASDAQ. This means that it's much easier to trade what you know about. Warren Buffet, the king of stock market trading, says that he never buys what he doesn't understand. It's easier to understand a country than a thousand stocks.

Analysts don't affect the market. It's too big for them to do that. The market is so huge, with so many players, that there's really no way anyone can affect the market all by themselves.

You don't pay commissions to brokers. They get paid another way. It's much cheaper to trade in the forex market than it is to trade in the stock market.

These are just some of the reasons that you should consider forex trading. They're also proof that the forex market is no scam.

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