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Is Forex a Good Investment?
2:45 · 7 chapters · Forex lessons, part 46
What you'll learn
Forex is a trading market, not an investment: why, what leverage does, and the scam signs to watch for, in under 3 minutes.
Go further with our written guide on this topic, browse all the free Learn Forex lessons, or check today's market in our forex news.
- Key point 1
- Why a currency pair is not an investment like a share, bond or property
- Key point 2
- What a 1% move does to $1,000 of margin at 1:1, 10:1 and 30:1
- Key point 3
- When forex can make sense: hedging, saving abroad, small tested trading, indirect exposure
- Key point 4
- Four warning signs of a forex investment scam
- Key point 5
- Five questions to ask before you put money into forex
Rules and limits from regulators and official sources; every price, account and chart in the video is an example. Education, not financial advice.
More forex lessons
The video is presented by an animated host with a computer-generated voice; the research and checks are by the FX Recap team. Risk warning: forex and CFD trading carries a high risk of losing money because of leverage, and most retail accounts lose money. This is education and review, not financial advice. FX Recap may earn a commission from some broker links; see our affiliate disclosure.