Many people only see his advantages, but few people ask his shortcomings like you. Glad to answer for you!
1. For our country, the foreign exchange deposit is not officially open. A few years ago, several banks tried to operate for a period of time and closed down. At present, all the margin trading that China people can do are foreign platforms. This is the biggest drawback, in other words, our funds are not protected by the state. Hacked, cheated, at your own risk. At this time, you need to choose a reliable platform trader. The platform trader is characterized by large funds.
2. China has an annual foreign exchange quota of $50,000 per person per year. It cannot be exceeded, which will be beneficial to accounts with large capital gains and losses and is not conducive to operation. But it has no effect on small accounts. If you think $50,000 a year is enough, it doesn't limit you.
These are the two biggest shortcomings.
3. The market is chaotic because the state has no clear support, no clear opposition, and no effective management. In particular, many novice friends are easily tempted by foreign exchange agents, so I don't have to use the word cheating. Beginners with poor skills can easily be dragged in to open a real warehouse account. As a result, 90% of them are losing money. Let traders and IB live in vain.
4. High income means high risk. Even if the novice is not tempted, if you don't learn the risk management of funds, it is easy to explode in a short time! It's not like stocks. If you ignore them every day, you will lose 10% at most. Of course, this can be avoided by reasonable stop-loss orders, but novices have many problems in this regard.
I haven't thought of anything else for the time being.
Have a nice day!