Risk Warning: Your capital is at risk. Statistically, only 11-25% of traders gain profit when trading Forex and CFDs. The remaining 74-89% of customers lose their investment. Invest in capital that is willing to expose such risks.

Why Forex Trading Should Not To Be Treated Like A Casino

Author: Martin Moni
Martin Moni
All publications of the author

You may be tempted to treat the Forex markets as a place to bet and hope for the best. However, ask yourself this, how many gamblers are millionaires, or even make a living out of it? There are actually very few of them, and in fact, only those who play games like poker become successful; but you can never beat the house. Getting into the Forex market expecting to make quick money is the easiest way to lose money because the two are vastly different. To show you how, let’s consider some key differences.

The Forex market is regulated by the government

Every Forex broker is supposed to obtain a license from the relevant Forex regulators in the region they operate. The regulator’s mandate is usually given through the parliament, meaning that it has the backing of legislation to pursue any complaints. Now some gambling fans will also point out the fact that gambling too is regulated, such as by the Gambling Commission in the UK. I’d ask you this, when was the last time you hear someone got compensated for losing all their money or ending up in debt? Not one mention on the entire internet exists of such a case, and that is because everyone who steps into a casino inadvertently accepts all the liability for their losses. Whether the casino did cheat or not, there is no avenue for a losing gambler to pursue a case against the casino. (The law managed to catch up to these: Top 10 Most Outrageous Forex Market Scammers)

On the other hand, an aggrieved Forex trader can simply file charges with the regulators and they are obligated to investigate the case and get to the bottom of it. Indeed, even the Gambling Commission’s stated objective is ‘to prevent gambling from becoming a source of crime’ and that ‘gambling is done fairly’. The GC could not pursue a complaint by a gambler for their losses because, even the commission cannot have access to the casino’s books. Moreover, there are no books when it comes to luck or any way to prove that the roulette table didn’t go your way because the casino tampered with it. However, a Forex regulator could demand for the trading records of a client and receive them. These should show exactly what happened, and can be compared to the market data, thereby proving any wrongdoing. (In case you feel defrauded, this is: How to complain against a broker)

What we’re trying to show here is that the difference between the Forex market and a casino is that there are laws governing the former that can be pursued for justice. With a casino, your luck that the dice land with snake eyes are natural, and can’t be refuted. One is backed up by technology and records while the other simply depends on luck – a major difference by all accounts. As a thought experiment, try comparing a 300-foot sand dune to a building of the same height. No one got credit for the formation of the sand dune nor will anyone be liable if it someday collapses to dirt. If the building collapses, though, someone will have to take the blame. In this thought experiment, a casino is similar to the sand dune – you’re simply lucky if you manage to win, but you have no one to blame the day you lose all your money. The Forex market is like the building – through careful construction you can build a magnificent structure. The cause of collapse, if and when it occurs, can be discovered and appropriate blame placed on the responsible party. (Before that investment: Learn How Cryptocurrency Scams Operate And Avoid Them)

Even the criteria for selecting a casino is different

What do you do when choosing a Forex broker? There are many steps as we have seen in previous posts on how to avoid scam brokers, and they all involve establishing trust with the Forex company. This means looking at the company’s reputation, reviews from other clients, regulations, company structure, etc. All these help you to determine whether you can trust that particular broker with your money. Then you have to consider what options the broker has to offer in terms of trading instruments, conditions, markets, etc. Here, you get to compare how the company services rate against the others in the industry. (How to choose a Forex broker: basic rules and useful tips)

Now think back to how one chooses a casino to splash their money on. I doubt anyone ever asks themselves too many questions regarding the company itself, the management or regulation. More often than not, you simply enter the casino you heard the most about. The one with the flashiest tables and aura, quality drinks and beautiful waitresses. A casino is not a place where people can be pragmatic, but rather where one can be as decadent as they please. Why else do you think casinos rarely allow cameras into their doors – even they know what happens inside, should stay inside. And they impose this unwritten rule both to you and their regulators. (These are the: Changes In Forex Regulation Through MiFID II)

Forex trading is an art whereas gambling depends on luck

There are several famous Forex traders throughout history such as Jesse Livermore, George Soros and the like. These traders only got their fame because they mastered the art of Forex trading through years of experience perfecting various trading strategies. They did not just become successful for decades through luck as gamblers do. Instead, their success came from a diligent approach to the markets to understand market dynamics and economic principles. (Follow these: 10 steps of successful traders)

By the way, there aren’t any famous gamblers who were successful for decades depending on luck. Sure, there may be some famous poker players, but that is just one facet of a casino. What really happens with luck is that it eventually learns and it is not something you can depend on. This is how many gamblers get addicted to the practice and end up losing their shirts. In this sense, Forex trading differs completely from a casino. (This is: How to protect yourself from margin call)

Patience vs. impulse

To succeed in the Forex market, one of the most critical lessons is patience. This was one of the lessons taught by Jesse Livermore who stated that he spent most of his time sitting down and analysing the markets than even making the actual trades. To this day, this same principle still holds true because the most successful traders are those who can make few trades and let them run into higher profits, thus, it takes patience to make money in the Forex markets. (Concepts Every Trader Should Understand: Leverage, Margin And Hedging)

Over at a casino, patience does not pay a cent. You cannot expect to make any money in a casino just sitting around waiting for a good opportunity. For one, you might even be thrown out for doing nothing. Besides, there’s never a good time for luck to strike, which is the only thing that can make someone successful in a casino. Therefore, Forex trading differs from a casino because one requires that you be patient while the other forces you to keep making bets without any forethought. (This is: How Not To Be Added To The 95% Of Losing Traders)

Long-term vs. short-term goals

We don’t trade the Forex markets so that we can make some quick money to splash around. Indeed, anyone who trades the Forex market with a short-term view of quick cash quickly learns that they are only losing money. The goal is to create a source of regular income, whether passive or active, but not to make easy money. Meanwhile, a casino is the perfect example of a get-rich-quick scheme because it’s possible to make a large amount of money in a very short time – minutes actually. All the same, these are all just to satisfy the short-term needs of an individual, rather than making a living out of it. Due to this, we can see that the Forex market is also not the same as a casino. (Before you do it: Think Twice When Making A Deposit In A Forex Company)


Knowing all these differences, you should be careful about the rules involving each field. Participating in the Forex market means that you should be aware of the governing principles i.e. market dynamics. On the other hand, you’re free to go wild in a casino as long as you don’t spend your lunch money and go hungry the next day. (Investing In Cryptocurrencies: Watch These 5 Profitable Cryptocurrencies)


Perhaps the most trusted voice in this discussion should be one from someone who has worked in a spread betting company, and this is what they have to say:

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Risk Warning: Your capital is at risk. Statistically, only 11-25% of traders gain profit when trading Forex and CFDs. The remaining 74-89% of customers lose their investment. Invest in capital that is willing to expose such risks.
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