No inherent growth: Currencies don’t grow in value like a company’s shares, nor is there regular income from dividends or bond interest payments. You can make money out of long-term bets on currencies, but it’s not really investing – just a long-term trade.

Liquidity whiplash: The currency market’s very appeal – its liquidity – can backfire. In certain circumstances, prices can move against you in a fraction of a second.

Leverage dangers: Using borrowed money magnifies every movement in the currency’s price – so a sharp drop can quickly wipe out your holdings.

• CFDs and spread betting are popular leveraged forex trading tools in some places, but they’re particularly risky. You don’t own the underlying currency, so it’s basically gambling – and you could lose more than your initial stake.

Poor regulation: The forex market is less regulated than stock or bond markets, so shady operators can prowl. If your trade starts going south, they can force you to cash out before it has a chance to recover – and you can lose far more than you wagered.

Binary options: Banned in certain areas, these allow you to bet on, say, EUR/USD being 1.10 tomorrow. If you’re right, you get a payout – if not, you lose your whole stake.

Macroeconomic risks: Central banks, natural disasters, and unpredictable tweets can all upset your trades. Sticking to more stable developed markets (where dramatic economic changes are less likely) may help, but no one can predict the future with certainty.