What are currency trading forums?
As the world of forex completed its migration to the online domain, what sprung up as a result were growing communities of web-based forex traders, of which many had an opinion to share. Because of this, during the early 2000s, forex trading forums began to crop up within all four corners of the globe. Their purpose was to allow free and open discussions of forex trading to share tips, tricks, and advice.
Over the years, the number of active currency trading forums has grown exponentially, with some boasting hundreds of thousands of active members. Open for discussion and rife with both expert and novice traders, currency trading forums are, for many, part and parcel of the forex trading experience.
While these platforms have certainly become a great place to stop and chat about all things forex, they aren’t without problems. The following presents issues related to currency trading forum sites.
Lack of transparency
The degree of information that can flow through a currency trading forum is amazing, as new posts and topics of discussion crop up daily. Through such means, traders also issue advice, which is where a user must be cautious. There is a distinct lack of transparency, as validating the credentials of any member is more or less impossible. For this reason, you can never truly be sure where the advice you are reading has come from.
What you will also find is that the term “affiliate” has crept into even some of the world’s most well-respected currency trading forum sites as well. This means that some brokers infiltrate a forum (legitimately or otherwise) to self-promote. Not only is this something active traders must watch out for, but it has also resulted in hostilities between members on certain forums. Verbal attacks, bickering, and the act of pushing down other members/listed brokers has unfortunately become common, thus clouding the forum's effectiveness as a result.
Resistance to newcomers
On somewhat of a sad note, you may find that certain currency trading forum sites are hesitant to welcome new members or inexperienced traders. What was once an open book has now in many ways become a closed shop;for instance, should a novice trader ask questions, they may find themselves ignored or even shot down in rare circumstances. Certainly, many currency trading forums do welcome novice traders, but be aware not all adopt this approach.
Forex trading is nothing short of a global phenomenon, as traders emerge from practically every country and continent. While this is a great thing, it can create an issue on a currency trading forum, as many forex traders who frequent such sites don’t speak English as a first language. Some of these individuals may often say things of note, but in many instances, it will be posted in their native tongue or run through a questionable Google translation. This can cause frustration, as readers may have a hard time deciphering what’s actually being said.
The communal nature of forex trading forums is a real positive, as it’s great to see active traders come together to discuss matters both related (and unrelated) to trading. That being said, the actual framework really appears dated in the age of instant messaging. Forum-based chat is anything but instant, as comments can take upwards of a minute to post. This is something that can create confusion and delays, should you be trading in real time.
Technical analysis overemphasis
Statistics can fly around thick and fast when it comes to forex. Unfortunately, due to the nature of many currency trading forums, this means they lean heavily on technical analysis as a result, with fundamental analysis often taking a back seat. This level of prioritisation can often lead to misleading messages being promoted, as numbers alone—which may alienate those who prefer a fundamental analysis approach to trading—drive many conversations on site.
Currency trading forums obviously have a use, as they allow like-minded traders to come together to freely discuss everything from strategy to trading tips. However, these sites are far from clean cut, as at times—due to the issues mentioned above—they can represent somewhat of a minefield. If you are looking to jump head first into a currency trading forum, commit the above to memory and proceed with caution.