1. Lack of transparency: As the foreign exchange market is dominated by brokers, being driven by brokers means that the foreign exchange market may not be completely transparent. Traders may not be able to control how their trading orders are executed, may not get the best price, or may only get limited trading quotations, which can only be provided by brokers of their choice. A simple solution is to choose only the regulated brokers for trading, because these brokers are under the jurisdiction of the regulatory agencies. The market may not be controlled by regulators, but the activities of brokers are within the jurisdiction of regulators.

2. Complex price determination process: The foreign exchange rate is influenced by many factors, mainly global political or economic factors, which may be difficult to analyze. Most foreign exchange transactions rely on technical indicators, which is the main reason for the sharp fluctuations in the foreign exchange market.

3. High risk and high leverage: Foreign exchange transactions are conducted on high leverage, which means that a person can gain several times the exposure of trading funds. The foreign exchange market allows a leverage ratio of 50: 1, so a person can hold a foreign exchange position worth $50 as long as he holds 1 USD. Although traders can benefit from leverage, their losses will also be amplified. Foreign exchange trading can easily become a nightmare of loss, unless you have a full understanding of leverage, an effective fund allocation plan, and strong emotional control (such as the willingness to reduce losses).

4. Self-directed learning: In the stock market, traders can seek professional help from portfolio managers, trading consultants and relationship managers. Foreign exchange traders are entirely on their own, with little or no help. In the whole trading career, self-discipline and continuous independent learning are necessary. Most novices quit in the early stage, mainly because of limited knowledge of foreign exchange trading and improper trading, resulting in losses.

5. High volatility: Due to the uncontrollable macroeconomic and geopolitical development, it is easy to suffer huge losses in the highly volatile foreign exchange market. If there is something wrong with a stock, shareholders can put pressure on the management to start the necessary reforms, and they can also ask the regulators for help. Foreign exchange traders have nowhere to go. When Iceland went bankrupt, foreign exchange traders holding Icelandic krona could only stand by and watch. The 24/7 market makes it difficult to regularly monitor prices and volatility. The best way is to strictly control the stop loss of all foreign exchange transactions and conduct systematic trading through well-planned methods.