Forex is a risky Business

Of course, every investment is risky but the risks of loss in trading off-exchange Forex contracts are even bigger. That’s why once you decide to be the player in this market, you’d better realize the risks connected with this product for make suspended decisions before investing.
In Forex you are operating big sums of money, and it’s always possible that a trade will turn against you. The Forex trader should know the tools of advantageous and careful trading and minimizing losses. It’s possible to minimize the risk but no one can guarantee eliminating it. Off-exchange foreign currency trading is a very risky business and may not be appropriate for all market players. The only funds that can be used for speculating in foreign currency trading, or any kind of highly speculative investments, are funds that represent risk capital - for example, funds you can afford to risk without worsening your financial situation. There are other reasons why Forex trading may or may not be a suitable investment. We describe them below.
The fraud and Scams in Forex market
A few years ago Forex scams were very usual but since then this business has cleaned up. However it’s wiser to be cautious and to check broker’s background before signing up any documents with him or her. Reliable Forex brokers work with big financial institutions such as banks or insurance enterprises and are always registered with official government agencies. In the US, brokers should be registered with the Commodities Futures Trading Commission or should be a member of the National Futures Association