It is common knowledge that forex trading has a bad reputation. The industry has been associated with scams and frauds and being dubbed as a passing trend by many observers.

However, there are also myths about the financial markets in general, not just those from within foreign exchange trading. Therefore, let us go over ten myths about forex trading and see if we can debunk them.

Forex Trading is a Scam

FALSE: While there certainly have been quite a few scams related to foreign exchange, this doesn’t mean that the entire industry is fraudulent. Learning more about how financial markets work and who exactly you’re dealing with will help you avoid such situations.

Only a Handful of People Can Make Money at Forex Trading

FALSE: The forex market is open to everyone, from beginners to professionals. You need to show patience and dedication if you want to succeed, but it’s certainly not an impossible feat. The most recent reports indicate that experienced traders generate more profits than ever before.

Trading is Difficult to Get into

FALSE: The market has become globalised, with plenty of opportunities available for all tastes and levels of expertise. The internet has made it quiet easy for people to trade currencies thanks to brokers offering better deals across various platforms.

Forex Traders are Poker Players

FALSE: There is certainly an overlap between two different types of traders, but this doesn’t mean that they are the same thing by definition. Poker requires you to predict other opponents’ behaviour, whereas foreign exchange involves predicting the moves of central banks and governments rather than that of other people (the market).

Forex Trading is for Old Men

FALSE: The average age of a trader was 35 in 2013, so it’s not a field dominated by older people. The liveliest markets are typically those involving younger demographics.

You Need to Start with a Large Deposit to Trade at Forex

FALSE: While you need a certain amount to open an account with a broker, many forex brokers offer small minimum deposits. Some even let you to start trading with as little as $1.

Forex Market is Difficult to Research in

FALSE: The internet has made gathering information more accessible than ever before, and there are many forex trading education resources. Just make sure that you use dependable sources and don’t fall into scams like paid newsletters, which are common among young traders who assume that the market is easy money.

Forex Traders Don’t Pay Taxes

FALSE: There’s no way around it; if you earn money on Forex, you will have to pay taxes on your earnings. While this varies from country to country, it’s always better to be safe than sorry.

Forex Trading is Only for Experts

FALSE: The forex market has become more accessible over the years, and pretty much anyone can go out there and try his luck. You don’t need specific qualifications, and as long as you approach the market with a positive attitude and patience, success isn’t too far away.

Forex Trading Involves High Amounts of Leverage

FALSE: Most brokers offer smaller amounts of leverage (around 1-1.5:1) compared to stocks (2-5:1). As long as you understand the risks involved, you shouldn’t have any problem trading forex.

In conclusion

Getting into forex trading isn’t as difficult as many believe. There are plenty of demo accounts that allow you to practice and get a feel for the market without any risk involved, making it easier to take your first steps in the world of forex trading.

If you want to succeed at Forex, one of the most important things is having patience. It’s not uncommon for traders who start to give up after losing money on their first few trades. They often tell all of their friends that Forex is not for them.

However, you can’t expect to be successful right away. It takes time and practice before you’ll become an expert in the foreign exchange market.