According to wikipedia "is a fraud every forex trading scheme used to defraud individual traders by convincing them that they can expect to earn high profits by trading in foreign exchange markets. Currency trading" has become the fraud du jour 'in early 2008, according to Michael Dunn of the U.S. Commodity Futures Trading Commission. "There are many ways to prove that the brokers and market makers to make poor retail brokers to swim against the tide.

Wikipedia quoted "The forex market is a zero-sum game, meaning that whatever benefits the merchant, the other loses, except that brokerage commissions and other transaction costs are subtracted from the results of all traders, technically making forex a" negative-sum "game possible fraud. including rotating from customer accounts for the purpose of generating commissions, selling software that is supposed to guide customers to great advantage, not properly managed "managed accounts", false advertising, Ponzi schemes and fraud directly. It also refers to any forex broker which indicates that the retail foreign exchange trading is a risk, low investment high profit. The U.S. Commodity Futures Trading Commission (CFTC), a loose set of foreign exchange markets in the United States, has noted an increasing number of unscrupulous activity in the industry of non-bank foreign exchange. "

According to wikipedia again there are many ways / reasons for retail forex traders lose their money. "The foreign exchange market is a zero sum game where there are many experienced well capitalized professional traders (eg working for banks) who can devote their time to trade full attention. An inexperienced retail trader will have significant disadvantages compared with this information the merchant.

Although it is possible for some experts to successfully arbitrage the market for huge returns, this does not mean that greater numbers could get the same advantages even given the same tools, techniques and data sources. This is because the arbitrages are essentially drawn from a pool of limited size, although the information about how to capture arbitrages is a nonrival good, a good rival arbritrages own. (As an analogy, the total amount of treasure on an island is the same, regardless of how many treasure hunters have purchased a copy of a treasure map.) Retail Merchants - almost by definition - undercapitalized. As such they are subject to destruction problem gamblers. In a fair game (one with no information advantages) between two players that continues until one trader goes bankrupt, the player with lower amounts of capital have a higher probability of going bankrupt first. Since the retail speculator is effectively playing against the overall market - which has almost infinite capital - he almost certainly will go bankrupt. Retailers always pay the bid / ask spread which makes the opportunity to win less than those of the game is fair. Additional costs may include margin interest, or if the spot position remained open for more than one trading day may be "resettled" each day, each time the full cost of bid / ask spread.

According to the Wall Street Journal (Currency Markets Draw Speculation, Fraud July 26, 2005) "Even the people running the trading shops warn clients against trying to time the market." If 15% of day traders are profitable, "said Drew Niv, chief executive of FXCM, 'I'd be surprised.'" Paul Belogour, Managing Director of a retail forex trader based in Boston, as quoted by the Financial Times said, "Trading foreign exchange is the best way for investors to find out how difficult the market is really, but I say to the customer.: if this is money you have worked so hard for - that you can not afford to lose - never, never invest in foreign exchange ".

The use of high leverage
By offering high leverage, the market maker encourages traders to trade extremely large positions. This increases the trading volume cleared by the market makers and increase profits, but increases the risk that the merchant will receive a margin call. While professional currency dealers (banks, hedge funds) never use more than 10:01 leverage, retail clients generally are offered use of between 50:1 and 200:1. A self-regulating body for the foreign exchange market, the National Futures Association, warns traders in forex training presentation of risk in currency trading. "As stated at the beginning of this program, off-exchange foreign currency trading has a high level of risk and may not be suitable for all customers. Funds only ever be used to speculate in foreign currency trading, or any type of investment that is speculative, is funds that represent risk capital, in other words, funds you can afford to lose without affecting your financial situation.