FOREX is the foreign currency exchange market that banks use to move, on average, over $6.6 trillion US dollars per day between institutions and across borders. If you're alive and have a bank account or a credit card, you're routinely taking part in the FOREX market without even realizing it. So no, “FOREX” is not a scam. However, because FOREX is a global marketplace, there are no overarching international laws which regulate and protect retail traders like us. The United States has some of the strictest limitations on retail FOREX trading, which has only made the situation in the US worse by creating a vacuum that has forced many American retail traders to fall victim to the actions of disreputable offshore brokers. This is why selecting the right broker is of the utmost importance to the security of your account. Fortunately, as the popularity of FOREX trading has increased drastically, so has the selection of reputable brokers. If you find a broker who is regulated in a reputable and politically stable jurisdiction, has been around for many years, and has a good reputation, your investment is likely as safe as any investment can be. If you elect to go with an unregulated broker or a broker known to B-book trades (as examples), you are putting your money at increased risk.