Why are forex traders and cryptocurrency frowned upon?

There are many forex traders involved in trading as it is becoming businessmen’s reliable source of income during the COVID-19 lockdown. Forex trading is the biggest financial market that even non-businessmen are able to invest in as a side activity to generate a small income. However, it requires the trader to be knowledgeable and observant on the changes that are occurring in the market as the market runs 24/7 which some traders could lose their opportunity in performing their transactions in time. For the forex traders who wish to take their interest to a higher level, they are able register for a license with a forex brokers who are affiliated with jurisdictions which ensures that the forex brokers are operating abiding by the code of conduct and are not involved in any illegal operations. Depending on the trader’s country of origin or the type of license they wish to obtain, the regulations to obtain one is different. For example, a legal forex broker in Malaysia requires traders to acquire a license from them and have it approved by the Bank Negara. 

However, some countries restrict or ban forex trading. While some might speculate that it could have been the influence of religion, forex brokers introduce a swap-free accounts or Islamic accounts to prevent Muslim traders from breaking the Sharia Law which restricts Muslims from receiving or giving money from any method. Therefore, Muslims are free to trade as long as they purchase Islamic accounts to protect themselves from the law. Forex trading has also garnered a bad reputation over the past few years as most forex brokers are known for unethical methods of trading and ghosting on their fellow traders to gain more profit for themselves. 

Similarly, cryptocurrency was introduced as an alternate method to invest and generate income passively while being accessible to everyone. However, it is a riskier investment as it is more volatile than forex trading while it rewards hardcore traders with higher rewards. It also garnered a terrible reputation thanks to Bitcoin’s incident which became frowned upon by everyone even today. Despite that, many businessmen tried to create their own cryptocurrency services by inviting their family and friends to invest a large sum of money by promising the returns they will receive will be at least twice or thrice the amount they have invested into them but would most of them would fail and received bad reputations as they feel disappointed for having their hopes and expectations held high to only be let down by the businessmen unable to return the promises.

Overall, both cryptocurrency and forex trading still exist and many traders are slowly learning and educating themselves to prevent the past incidents occurring in a larger scale or to themselves and the people around them at least. Both businesses have so much unpredictability that any unforeseen circumstances can heavily affect one’s financial status, let it be the market declined significantly or the foolishness of one’s arrogance that will lead to his or her downfall. Therefore, traders should tread carefully and educate themselves well before investing into these businesses.

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