Why do people think forex is a scam?

My own perspective, on this topic is, forex is real! Very real. You just need to master the trading market to enable you avoid much loses and gain more wins.

The reason people think forex is a scam is because many countries do not have laws that govern how forex brokers operate, and who can parade themselves as a forex expert.

When you go online, you see all sorts of characters selling courses and giving trading/investment advice even without having the requisite educational qualification to back it up.

So, these are part of the reasons people think forex is a scam. But the reality is forex trading is not a scam.

Knowing how to trade is not enough, you need to have self-control over emotions like greed and fear, and this is where most people fail. When they cannot succeed in becoming steadily profitable in forex, they resort to becoming scammers and selling lies to others.

If there were laws that govern forex trading in every country, most of these people you see online claiming to be forex gurus will disappear. For example, in the United Kingdom where there are laws governing forex, you cannot just come out and start selling signals and dishing out investment advice without being licensed by the UK government, you will be arrested.

You are free to trade on your own, but when you start selling signals and giving investment advice to people then some countries (like the UK) will require you obtain a license.

Lol,I have also experienced the same .The critical distinction is between the legitimate forex market and the unscrupulous operators and promoters exploiting it. While forex itself is real and necessary, it carries inherent extreme risks, especially due to high leverage magnifying losses rapidly. Combined with unrealistic expectations fueled by scams and the sheer difficulty of mastering trading, most retail traders lose money. This high failure rate, often stemming from encountering bad actors or underestimating risk, fuels the "scam" perception, even though the root cause is usually a toxic ecosystem surrounding retail forex, not the market's fundamental illegitimacy. Success requires significant skill, discipline, risk management, and using a reputable broker.

Because many governments around the world refuse to regulate it, giving room for scams to thrive unchecked