Forex Question....?

Question

Recently heard about Forex but I'm not sure if it's a scam or truth.... I have not found reliable information about it.

What is it? How does it work? Do you pay taxes on it like a regular investment? and if this is a legal investment option, where can a find a broker or company (with references) that I can work with?

Answer 1

Google "forex" and check out the sponsored links.

The taxes are like any other trading and the dealer will send you a 1099B at the end of the year.

As for references, you can check on them with the National Futures Association.  It is not required that they register, but I wouldn't deal with anyone who did not voluntarily register.

They all work the same way.  Sign up for the free practice accounts and pick the one who's free software you personally find easiest to use.

Answer 2

Forex involves the trading of currencies.  You are typically trading dollar cross rates against other major currencies, such as the Yen, Euro, British Pound, etc.  

The lure of trading Forex is that you can trade with a lot of leverage in comparison to the stock market.  You can also trade currencies around the clock, but why would you want to?

I have traded currencies, commodities and stocks, and I think that if you are an inexperienced investor, stocks is the way to go.  There are many more investment opportunities, and many stocks making substantial moves at any given time, irregardless of the overall trend of the market.

Anyhow, you can find some books on the subject at your bookstore and library.  There are many ways to trade currencies, using technical analysis or fundamental analysis, but most traders use technically based trading systems.  

Lots of brokers on line, just do a search!  

Scott Cole

www.kungfutrader.com

www.bestdaytradingstocks.com

Answer 3

Well, there is money to be made in foreign currency exchanges. But lots of money to be lost as well.

Some folks tend to forget that these markets are for businesses doing what businesses do. Banks see that their clientele tend to need more of this currency or that in general cycles, so if they worry that more will be needed, they buy a contract for the delivery of currencies in question. Some businesses buy or sell currencies because they have over subscribed for sales or got something at a bargain and ordered more, so they will need to cough up more yen or euros or whatever at some future date.

The role of speculators is to keep the ball rolling when the banks and businesses aren't immediately needing it. But those liquidity types are usually quite wealthy people. The economist Keynes handled some of his college's investment cash and managed to build the college endowment with multiple millions, doing this in his spare time in the currency futures.

The problem is that folks like you are being suckered into some game that you are clueless about. Even if they have some slick formula that points out buying and selling "signals", you are a fish out of water. Any toddler can operate a cell phone, my granddaughter can even though she can't talk yet. Your getting into forex is like that. Save yourself some grief and run, do not walk, away from these hucksters trying to enlist fresh meat into their program.

Answer 4

This "INVESTMENT GUIDE" is more helpful for you to make your money to make money for you,without taking any risk.

To gain more information ABOUT LEGAL INVESTMENT OPTION IN FOREX,just gothrough the site

http://www.savings4future.com .........

GOOD LUCK

Answer 5

forex trading is real and not scam, however, there are sites that promotes forex trading as well as forex softwares that scams potential traders.

The forex market is the biggest and fastest growing market on earth. Its daily turnover is more than 2.5 trillion dollars. The participants in this market are banks, organizations, investors and private individuals.  There is no centralized location for trading as there is in futures or stocks. Trading occurs around the clock over the telephone and on computer terminals at thousands of locations worldwide. Most foreign exchange activity consists of the spot business between the US dollar and the six major currencies (Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar). The FOREX market is so large, and is hosting so many participants, that no single player, governments included, can directly control or make any significant influence over the direction of the market.  It involves the trading of contracts of currency pair exchange rate. It is a NON-DELIVERY trade, which means that there is no physical transaction of currencies, but it is rather an agreement, or "contract" (FOREX DEAL), to trade specific volume of a pair of currencies at an agreed exchange rate.

You may register to this site for more information. Download a Free Ebook for you to read and learn what you want to know about forex.

Answer 6

Focus more on fundamentals than technical analysis. Economic news analysis is what moves the markets.

Here is a free site that shows what has happened after economic news releases:

http://www.forexnewspatterns.com