Forex trading itself is not a scam, but the industry can attract scams and shady practices especially because it’s largely unregulated in some parts of the world and accessible to retail traders online. Here's a breakdown:

Legitimate Forex Trading

• Conducted through regulated brokers.
• Involves speculating on currency prices.
• Offers real profit potential, but also real risk of loss.
• Used by banks, hedge funds, governments, and individual traders.

Forex Related Scams to Watch Out For

• Unregulated brokers – May disappear with your money or manipulate prices.
• Get-rich-quick schemes – Promises of guaranteed profits or unrealistic returns.
• Signal-selling scams – “Experts” charge for trading signals with no proof of performance.
• Account management scams – People ask to trade on your behalf, then vanish.
• Ponzi or MLM Forex schemes – Using Forex as a front to recruit and pay out earlier investors.

How to Protect Yourself

• Choose a broker regulated by bodies like the FCA (UK), ASIC (Australia), or NFA/CFTC (USA).
• Avoid promises of guaranteed returns—no one can predict the market with certainty.
• Use demo accounts to practice before investing real money.
• Do your research—check reviews, licenses, and public warnings.

Forex trading is a high-risk but legitimate financial market, not a scam. But it requires education, discipline, and caution to avoid falling for the scams around it.