The Forex market is the biggest financial market in the world. But this doesn’t make it easier; on the contrary. You have a lot of big advantages but Forex is also very challenging. Almost all advantages, when observed carefully, transform not is disadvantages but in challenges. It is the case of the Forex market being open 24 hours a day. When someone begins trading the Forex or reads about this particular market, this characteristic is taken as an advantage. Traders tend to think "Great! Finally I can trade whenever I want!". Well, this is, in part, true. But, when you start trading the Forex, you’ll see that volatility only appears during certain times and that if you are day trading, you can’t be in front of your computer 24 hours a day. This is a challenge for most Forex traders who are looking for day trading the currency pairs. If you want to day trade, you will have to develop a decent strategy in order to concise it to a few hours a day, probably when the volatility is more likely to urge.

Another big advantage that is always quoted related to the Forex market is the margin requirements. Well, even with a small account like $300 you can use 100, 200 or even 400x your money. You may think this is a great advantage but, in my opinion, this is more a challenge than an advantage. If you have a small account and try to use a high margin, you can lose your entire account in a single trade.

Also, Forex is known as the scam market. You have trading systems, courses and even brokers that are constantly rated by traders as scams. In the case of the systems and courses because they promise a lot of profits with no work at all, and in the case of the brokers that give you all the resources but then trade against you, don’t let you withdraw your money or simply disappear with it.

When you start trading the Forex market, or if you already are, you need to avoid the scams. Here are some tips of how to avoid Forex scams:

1 – Use your good sense. This is the primary thing you need to do. Evaluate carefully the product or the broker you are choosing. If you think they are offering you too much, be careful. It may be a scam.

2 – When you are looking for a forex trading system or a course, you’ll probably see things like "make $100,000 in a month". Forex is a challenging market and not everyone can make money with it. Don’t get fooled by get rich quick schemes.

3 – One good tip when buying a trading system or course is to look if they have money back guarantee or a free trial period. This way, if you don’t like what you bought, you can always ask for a refund.

4 – If you are looking for a forex trading system, course or broker, read reviews made by others traders. Read what they think about the product, the support team, how they handle their clients and so on. Read all that you can.

5 – Before buying a product or signing up with a broker, always read their webpages. Feel free to ask them your doubts. If they believe in their products and services, they will answer your questions.

6 – If you buy a forex trading system or course, test it first on a demo account. Don’t start with your real account because you don’t know how it will actually work. It may need some adjustments on your part to make the strategy good for you.

As I said, the Forex market is challenging. Unless you are able to spend some time with it, not only trading but also reading and learning, you won’t make it. But, without a doubt, it’s a very profitable market.