The Foreign Exchange market is also referred to as Forex and another common name that exists is FX, all three mean the same. When you are trading with different countries, banks, businessmen, government agencies or corporate houses all have to deal with Forex. They have to either send money to other countries or receive money from different countries and this is all referred to as Foreign Exchange. Generally banks and brokers (it is advisable to go to government authorized brokers) are involved in the financial trading between two countries and could be on behalf of any of the above namely, corporate houses, businessmen, government agencies and or individuals. When you have to deal with Foreign Exchange it is always recommended that you should be aware of scams that have become a regular feature these days, especially online scams. People at times try to fall in the rap of online exchange offers but it is a risky affair and therefore it is advisable to do Forex through proper channel and that is banks and authorized brokers, in order to avoid any scam.
Cash, currencies and stocks are all traded through the Forex or Foreign Exchange market. When you have to trade one currency in place of another, the Forex market comes into play. Foreign Exchange facilities are not available at all the banks and with all the brokers in that particular country; this aptly clarifies the importance of Foreign Exchange market. In case you are planning a trip to India, you will look for the value the dollar will fetch you in case you require to exchange and there is no other option but to get the money exchanged because in India in most of the places dollars will not be accepted. Similar is the scenario when an Indian travels to America. Indian currency is not acceptable and hence he or she will have to get the money exchanged from a bank or an authorized broker.
Individuals and small businessmen tend to lose a lot of money because they don’t have the complete or requisite knowledge about the Forex market. Trying to make a fast buck they end up losing their hard earned money instead of gaining anything. These are the potential preys for Forex scams. It is therefore recommended that you should always deal with banks (having foreign exchange facilities) or authorized brokers in order to avoid falling in the trap of people who are involved in these scams.
Forex scams are on the rise. Forex scam would not allow you to get your money back, it is gone forever. Therefore don’t just go on what you read on the Internet. It is possible that a company stating that it deals with Foreign Exchange is absolutely not authorized to do any Foreign exchange and in case you end up paying money to them it is as good as losing all your money. Not everyone has the license to deal in the Forex market; hence you have to be very careful.
In the last five years awareness about Foreign Exchange has increased mainly because of the information available on the Internet. It is best to carry all your Forex trades through banks and or authorized brokers (after verifying their credentials), they are not in this business for charity hence be prepared to pay the commission either to the bank or the broker who does Foreign Exchange on your behalf. It is a standard norm and procedure.