Forex investing: no place for amateurs
By Elaine Moore at The Financial Times
Private investors in search of the perfect way to counterbalance their portfolio have been turning with increased interest to currency trading.
Low-cost options to access the market, such as exchange traded funds, and lower risk options in the shape of currency funds, have allowed private investors into a sphere previously reserved for banks and institutional investors.
The increased activity of retail investors in currency trading has been cited as an important aspect of the general rise in global foreign exchange volumes in the past few years.


Foreign currency trading is easy — an easy way to lose money
By Nathaniel Popper, Los Angeles Times
More and more Americans are dabbling in currency trading and losing in spectacular fashion. Experts say the structure of the currency market makes it hard for amateurs to beat the house.
Dorothy Ouma began trading foreign currencies after seeing a TV commercial touting it as a way to make extra money, something she could use as a single mother raising three children.
"The ads made me think, 'This is easy,'" said Ouma, 52, an administrator with the Grand Prairie, Texas, police department.
Ouma used her credit card to fund an account with an online currency broker. Within a few weeks of swapping dollars for yen and euros, she said, her $3,000 of borrowed money was gone.