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Five Reasons Forex Trading is Not Online Gambling
Thursday, 07 January 2021

Trading, in general, is often seen as gambling although veteran investors will tell you otherwise. The differences between trading and iGaming might seem subtle to the untrained eye. But both involve a fair degree of luck, experience, and independent decisions. In order to comprehend the similarities and differences between the two, we must first understand the basics of both.

Forex Trading vs. iGaming

 
Forex or Foreign Exchange is simply trading in foreign currency instead of stocks, futures, or commodities. Forex functions similarly to the stock market and shares the risks. iGaming, on the other hand, represents any form of online wagering. Casual trading and gambling share quite a few similarities.
 
For starters, novices might start trading without a strong game plan and the same applies to amateur iGamers. Both trading and gambling have their fair share of perks and liabilities. But are vastly different at face value. Here are five dissimilarities between online gambling and forex trading.
 

5 Ways Forex Trading Isn’t iGaming

 
1. Numbers Game – Before delving into legalities, morals, legitimacies, and ethics, forex trading is foremost a numbers game as it involves currency. There is no way online gambling compares to the total amount traded daily at the forex. Depending on who you ask, between three and five trillion dollars are traded daily around the world’s countless forex markets. And although online gambling is a massive industry, the numbers don’t quite compare yet!
 
2. Strategies – The strategies required for online gambling and forex are poles apart. Although, an action plan is required in both cases. Trading or gambling without a strategy often leads to major losses. Therefore, strategizing is the key to success.
 
3. The Players – The forex market is supported by the biggest financial institutions around the world. Although banks aren’t a part of the project, the organizations offer a higher level of legitimacy than the gambling industry. Unlike iGaming, foreign exchange is preferred by a larger audience pool, resulting in greater activity than Canadian casinos. Hence, traders often prefer forex to iGaming.
 
4. Emotional Consequences – Gambling can be addictive and this applies to forex too! It usually occurs when people fail to control their emotions and desire to make money, even on a losing streak. Although Forex trading involves luck, unlike gambling emotions aren’t a part of the deal. Research is a key component of smart trading practices and fundamental analysis is often the way forward. It’s safe to say there’s no room for emotions in forex.
 
5. Tools of the Trade – Unlike gambling, the risk factor in forex trading does not require players to remain in the dark when opening a position. There is a steady chain of thought and logical reasoning behind assessing and eliminating the risks along the way. There is no House Edge in trading. Keeping a keen eye out before making a move is the only way to indulge in forex trading.
 
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