On its own, forex trading is not a pyramid scheme. Multi-level marketing strategies occur in plenty of industries however, so keep an eye out for the signs below.
What is a multi-level marketing (MLM) scheme in forex trading?
Imagine someone approaches you, someone you might or might not know personally. They offer you a package of forex trading tools, signals, and education materials for a certain price. They tell you that you will only become a good trader if you purchase such a product or service. The reason they are doing this is because the salesperson receives a commission after each product sold.
As a next step, they might offer you the opportunity to sell these products yourself to your circle of friends, for a commission. They might also offer extra commission if you introduce new people to join the scheme to sell forex tools, education materials, or similar products.
We would recommend staying away from MLM schemes.
How to educate yourself?
For starters, most forex brokers have free courses, webinars or e-books published on their website. Sometimes they don’t even require you to have an account with them to access these materials. It is a good place to start to learn how forex trading works.
One could think it logical that brokers publish educational content that pushes you to trade often, in order to drive up their income from commissions. However, in reality this is almost never the case, and their educational content is generally informative and genuine.
As for daily updates, we found Pepperstone’s daily newsletter, the “Daily Fix”, to be among the better ones – again, it’s completely free.