Forex trading is done on a much greater scale than any other kind of market in the world. Some 1.9 trillion dollars are handled every single day. About 73 percent of all currency trading is done by 10 intercontinental banks with names you’re familiar with: Merrill Lynch, Citigroup, and so forth. National banks and other financial institutions account for another chunk of forex trading, and trades by “day traders” — regular individuals, people like you and me — account for only 2 percent of the total.

Nonetheless, many regular traders do try their hand at forex trading, and there are many financials institutions who handle such trades. It’s identified as “retail forex,” and it’s managed much the same way that day trading of stocks is managed.

The risky part is that unlike the stock market, the forex market is not particularly well regulated, and people inexperienced with it can be taken advantage of. The U.S. Commodity Futures Trading Commission (CFTC) gives several bits of guidance for amateur forex traders. Among the CFTC’s tips:

- Avoid companies that predict or guarantee large profits, or that assure little or no financial risk. There is ALWAYS a financial risk in currency trading, and no one can assure profits when it comes to speculative activities.

- If someone is not providing background information on themselves or their company, just avoid them. Likewise, always check out a business’s track record before doing any trading with them.

- The Internet is a haven for dubious types. Be wary of anyone wanting you to send cash.

- More than anything else, keep in mind that if an opportunity sounds too good to be true, it probably is!

There are a lot of trustworthy and reliable forex trading firms out there, including ones that operate online. But even if the trading company is genuine, there are still risks inherent in trading. As currency rates can fluctuate for such a variety of reasons, it’s difficult to predict what investments to make. Even seasoned professionals get blindsided at times.

In short, forex trading can be profitable, but only if you know what you’re doing. Before embarking on any investing, study the details of how the market works, what generates fluctuations, how to interpret financial signals, and all the other ins and outs of the market. Currency trading isn’t something to be entered into without due consideration. There is much potential for profit, but there is even greater potential for loss, both at the hands of crooked trading firms, and of your own inexperience.

Before you spend money to learn forex take some time to learn about the many forex course out there.