Many people use investments and portfolios as ways to either stave off debt or to try to make some extra money to recover from debt. Your options for investing are diverse, from buying precious metals to contributing to a start-up company. Forex (foreign exchange) trading is a popular way to make money, but it’s not for beginners. The Forex market has no global regulation, though it’s a global market that sees significant activity. While plenty of people engage in forex trading, you should learn the scams and research reputable brokers before starting.
Major forex scams involve brokers who overcharge or downright lie to clients. Some websites claim to operate in forex trading but are really there to steal your information and money. Because global regulations don’t exist, you need to rely on certain countries instead. However, regulations between those countries are anything but uniform. The U.S. regulates forex through the National Futures Association (NFA) and Commodity Futures Trading Commision (CFTC). Before working with a forex broker or other professional, check that they’re NFA regulated.
The idea of buying and selling money based on changing exchange rates might sound like something you can jump into without much experience. Like any type of investing, it requires research. Create a practice forex account and learn the trade before investing any real money. After all, you’re trying to create a better financial profile, not give yourself more opportunities to go deeper into debt. Learn more about forex regulations in the U.S. and abroad. The infographic “How Forex Trading Is Regulated” contains helpful information for beginners.