Hi, thanks for your question!
Because of the strict and heavy regulations imposed on Forex trading in the U.S., it is a common misconception that Forex trading is in fact, illegal. In other countries, because of the complex Forex structure, it is hard for legal institutions to effectively keep track of trades that take place in Forex, which leads people to think that Forex is some kind of black market or illegal.
In some places, it has proven as a nice ground for scammers, which have tricked or scammed several Forex traders, leading people to conclude that Forex is unsupervised, and this leads to the occurrence of scams, but it is not so, in the USA Forex is supervised by Futures Trading Commission (FTC) and, National Futures Association (NFA).
These organizations serve as regulators and providers of certification to brokers which wish to operate in Forex, so it is always safer to cooperate with Brokers that have received authorization from these organizations, than with those which haven’t, as they may be scammers.
Another thing that may lead people to think that Forex is illegal, is that because of the presence of interest in some segments of Forex, it is restricted and not fully operational in some Islamic countries which adhere to the Sharia Law.