This process thoroughly analyzes factors such as the company's reputation, client reviews, and regulatory compliance. When choosing a forex broker, it is essential to establish trust with the company. In short, while gambling and forex trading may appear similar, they are significantly different, with the latter having greater legal and regulatory backing to ensure fair practices.įorex Brokers VS Casinos - The Selection Process The outcome of a casino depends upon an individual's luck, and they must accept responsibility for any losses incurred. The critical difference between the forex market and a casino is that forex trading is subject to regulations, which is not the case with casinos.

It is worth noting that even the Gambling Commission's stated objective is to 'prevent gambling from becoming a source of crime' and to ensure that 'gambling is done fairly.' However, the commission cannot pursue a complaint by a gambler for their losses as they do not have access to the casino's books, and there is no way to prove any wrongdoing beyond a reasonable doubt.Ĭonversely, forex regulators can demand a client's trading records, compare them to market data, and determine if malpractice occurred. On the other hand, aggrieved forex traders can file charges with the regulators, who investigate the matter thoroughly. That's because all individuals who enter a casino are ultimately responsible for any losses incurred, regardless of whether or not the casino engaged in unfair practices. While some may argue that gambling is also regulated, such as by the Gambling Commission in the UK, it is essential to note that no instances of compensation for individuals who have lost all their money or accrued debts have ever been recorded. The parliament typically authorizes these regulatory bodies, providing them with the legal backing to address complaints. The Forex Market Is Regulated By The Governmentįorex brokers require licenses from the relevant forex regulators in their operating region. This article will examine these differences to understand better how to approach the forex market. It is necessary to acknowledge and comprehend the critical distinctions between the two. Entering the forex market expecting quick profits is a precarious venture, as it is inherently distinct from gambling. Only those who engage in activities such as poker are likely to attain success, but even then, it is impossible to surpass the house. The number of individuals who remained successful is minimal. However, it is imperative to question the likelihood of success for such a strategy. Individuals sometimes perceive the forex markets as a gambling platform, anticipating quick and substantial profits.

Forex trading vs gambling