Trading in forex and how to shield yourself from crooks

Everybody with a few rands to spare wants to invest in forex, but many lose their money every year.

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It is the largest financial market in the world by trading volume, with an estimated daily turnover of over $6.5 trillion (about R117 trillion).

If you look at how often the Financial Sector Conduct Authority (FSCA) warns consumers about dodgy scams, it is clear that there are scammers, and a lot of them.

Just a week ago the FSCA warned about a trading company that promises returns of up to 40% per week, despite not being registered and not being allowed to provide financial services.

The FSCA recently warned against a scheme that promised returns of up to R448 800 from an investment of R48 500 within four days.

Tebogo Sehaole, business manager at Octa, says this is why it is vital to be knowledgeable about forex trading before going into it.

The latest survey from global forex trading platform, OctaFX, says 82.4% of people dealing in forex trading have been exposed to one or more types of forex scams.