Is Forex Legit? Separating Fact from Fiction

Our world of nation-states has a genuine need for a marketplace facilitating the exchange of foreign currencies. This real marketplace is the largest market in the world, with over $4 trillion worth of currency exchanged every day, with most transactions involving the U.S. dollar. Some may question whether this market is “legitimate”. It is certainly real, and many of the participants have a commercial need to exchange currencies as part of their business activities. However, many and possibly most of the monies exchanged are performed as speculative operations by banks and other large financial institutions, which some argue are morally illegitimate.

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“Forex” as we know it, though, is something a little different, which we might call “retail” Forex. Forex in this sense is not the real $4 trillion per day global market, but a retail industry which offers depositors the chance to bet on…

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