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Is forex trading a scam?

The currency market is real. But the US CFTC warns of a sharp rise in forex scams, and EU regulators’ 2018 figures show that 74% to 89% of retail CFD accounts (contracts for difference, a leveraged bet on a price) lost money.

✓ Checked 5 Nov 2026 · Next check 5 Feb 2027
A trading screen showing balances and a price chart
“It is not the place to put any money that you cannot afford to lose, such as retirement funds.”US Commodity Futures Trading Commission

Lines the CFTC warns about

These are pitches from the CFTC’s own fraud advisory:

  1. “Guaranteed to rise”A promise that a currency deal is guaranteed to rise.
  2. “No bear market”A claim that forex has no down-turning market.
  3. “Trust my title”Building credibility with a senior title at a reputable firm.
  4. “Bob got his start this way”Telling you that other savvy people have already invested.

Even without fraud, the odds are poor

ESMA reported that 74% to 89% of retail CFD accounts lose money, with average losses per client of €1,600 to €29,000. That was published in 2018, and CFDs are only one way to trade currencies.

Before you trade

  • Check that the firm is registered with your regulator.
  • Ask for everything in writing, as the CFTC advises.
  • Never hand your account to someone who promises returns.
  • This site recommends no trade and no broker.

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