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 Forex > Forex Trading > Forex Currency Conspiracies Part 1

Forex Currency Conspiracies Part 1

There are many forex currency trading conspiracy theories floating around out there. Theories are called theories because they’re not facts. At the same time, where there’s smoke there’s fire, and the foreign exchange markets are often filled with smokers.

What is a conspiracy?

A conspiracy is when a group of separate entities band together to work against something or someone with the intent of serving a particular interest that benefits the group at the expense of the plotted-against individual.

A conspiracy theory, therefore, is the belief that this type of behavior is going on with respect to individual currency traders getting fleeced by a global elite of FX juggernauts whose methods and means are unknown to an contrary to the interests of “the common man.”

This tone of ridicule is not to say that conspiracy theories are all dismissible, only to point out that theory is just a theory until it can be proven.

And as of now, no global forex conspiracy has been definitively uncovered.

Currency Trading Markets as the Biggest Scam of All Time

One currency trading conspiracy theory has it that forex trading itself is a conspiracy, the entire apparatus is a construct to rip off fools.

This theory doesn’t hold much weight with us.

First of all, a forex trade is simply the practice of exchanging one currency for another in the hopes of turning a profit. Different countries have different currencies and there are exchange rates that fluctuate. It is totally natural that FX trading should exist.

Additionally, there are external factors that affect the exchange rate of currencies; this upsets the “puppet master” theory because with so many different market participants and external factors, this is a tough game to fix. It’s not like horse racing where the cognoscenti can just put heavier weights on the strongest horse’s ankles.

Politics, weather conditions, other investors, banks, and international commerce all play into the currency trading markets. These phenomena are so varied and complex that it’s an act of arrogance to say that this group has time enough to think about ripping you off.

Please, don’t flatter yourself.

Currency Trading Conspiracies Wish They Were Bigger

Yes, there are scams that take place within the forex markets. The Commodity Futures Trading Association has put out a number that forex traders lose some $395 million per year to shady forex scams that may be rightly called conspiracies.

However, $395 million in a market that trades $5 trillion every day, to just look at the matter mathematically, is not the kind of number that’s that outrageous. Not when so many other cons are going on in the investment world.

Forex is a legitimate industry. Yes, you may lose your ass, as the saying goes, and you may even do so because of the efforts of a bank or because of how other investors invest. You may also lose your ass because you’re not very good at currency trading.

The solution is never to blame someone else, but to become a more professional currency trading broker so that you are not the one getting the short end of the stick.

It is possible to make a fortune in the forex marketplace. With that fact goes the fact that it’s possible to lose a fortune in the forex market as well. That is not a conspiracy, it is simply the way the currency markets work.

Important Forex Information

The most important step in currency trading is finding the right broker; our forex experts can help. See our
reviews of forex brokers for more information.  

The earlier you can start building a forex trading system that works for you, the better off you will be when trading the markets. Learn to build forex trading systems.  

In order to understand when to sell short in the forex market, we must examine individual currency short selling strategies. Learn the strategy of short selling currencies.  

While it is true that the bigger your position, the more you can benefit from utilizing the carry trade forex strategy, smaller investors can beneit, too. Read about the carry trade.