Trading in an over-the-counter financial market such as the foreign exchange market is much different than participating in an exchange-based financial market like most stock markets, and there are certain aspects of this that it is important to be aware of.

One of the main differences between the two is the amount of regulation and oversight. With a stock market exchange it is much easier to enforce certain types of trading regulations and restrictions, and prevent things such as price manipulation and insider trading.

In the foreign exchange market, while there are agencies like the CFTC and NFA, it is more like the wild west than it is like the New York Stock Exchange and so it is important to exercise discernment and be careful to only work with brokers that operate legitimately. This lack of regulation is the reason why there are so many reports of scams related to forex trading.

Unlike the stock market however, there is no such thing as insider trading when it comes to the foreign exchange market so any information that you can use to base your trading on is legitimate. Due to the sheer size and massive trading volume of this market, it is literally impossible for any one party to manipulate the market.