Forex Trade – Is It for Me?

Posted November 2, 2020 by in Lifestyle

If you have in mind to invest your capital in some of the financial markets, but you don’t know which is the best one, the Forex market should be a good option.

There are numerous reasons for trading on the Forex market today. It is the market with the largest trading volume going up to $5 trillion per day.

Here we give the insight into its major perks and starting requirements for all those willing to start their trading career on Forex.

Who Can Start Trading on Forex?

The foreign exchange market is computer-based and open to everyone. A decade ago it was reserved only for the closed circle of seasoned traders, central banks and financial institutions. 

Today, anyone with a reliable internet connection can be part of trading and profit from the Forex. The constant fluctuation of the currency pair prices is the main feature of this market, enabling millions of traders to make profits. 

Forex trading is based on learnable skills. Over time, you will need to develop the discipline to avoid risky movements that can lead you to lose your money.

Is There An Age Limit For Forex Trading?

Generally speaking, if you are under 18, the broker will not allow you to open a real money account. In some countries, the minimum age for starting trading forex is 21.

This is based on common sense that trading is a serious activity that demands making decisions. Making wrong decisions can lead you to a lifetime debt. 

How to Start Trading Forex?

The best way to start trading Forex is to find a good forex broker who will be the link between you and the markets. If you start searching the internet randomly, you will realize there is more than a vast choice of forex brokers. The ads for forex brokers are everywhere. They are competing to get you on board with the different kinds of welcome bonuses, sometimes promising to make you rich overnight. Please stay away from the latter, because it’s probably the scam! 

The good and honest brokers do n’ promise you to make millions in a day. They will first offer you proper trading and offer you to practice on a demo account until you are ready to invest real money in the market.

All forex brokers have different trading conditions and offerings. Despite being similar, there are still some differences to pay attention to. Before making a decision on which forex broker is the best for you, perform due diligence to find what best suits your needs.

 How Much Money Do You Need To Start Trading On Forex?

You don’t have to start with a large sum of money. Some brokers even offer you no deposit bonus to start trading on their platform. Some require a minimum sum of up to $100.

In general, $500 to $1000 is enough to start trading at the moment you think it’s time to trade more seriously. 

 How Much Can You Make Trading forex?

Don’t believe anyone telling you Forex trade will make you a millionaire overnight. It requires learning and practice. But after all, if you implement some simple risk controlled techniques and strategies, it’s possible to reach returns of 20% every month if you have a 55% winning rate. It doesn’t mean that all traders can achieve this. In reality, it’s possible to attain just after you get to know the currency pair you are trading. 

After you have learned to read and sometimes predict the market according to the news events, commodity market prices, and other important factors, your chances for-profits become much better.

Thanks to leverage, and with a decent strategy, you can expect to earn 5%-15% a month.