When trading in the international currency market (also called: Foreign Exchange or forex) you invest in (foreign) currency pairs.
This can be, for example, euros against dollars.
The investor deposits his deposit into an account with the trader or the bank with whom the trader works.
You should consider very carefully whether risky currency trading is suitable for you.
Are you willing to take (high) losses, do you understand the products, the costs and the leverage?
Do you know how currency trading works?
If you decide to invest in currencies, you should pay attention to these things:
• Take a critical look at projected profits.
What are they based on, is the provider transparent about the costs and risks?
In general, a higher return is accompanied by a higher risk.
• Check the register of the AFM. The register lists the providers that have a licence.
A permit offers more protection, but does not remove the risks.
• View the warning list of IOSCO, the worldwide umbrella organization of regulators.
The warning lists include rogue providers.
There are providers of forex products active on the market that are supervised by the AFM or another European regulator.
But here, too, investors should ask themselves whether these risky investments are appropriate for them.
