When considering 2023 and the challenges that it brought to the globe, a lot of people may feel the need to make more, or additional, income, especially when considering that the Covid-19 pandemic is all but behind us.
One of the best ways in which people can earn an income, is through Forex trading. More people have started exploring the options available to them and although it is not a get-rich-quick scheme, with determination, patience, and dedication, anyone can become an expert forex trader.
One of the best ways in which traders make money is by harnessing the volatile conditions that exist in the forex market. Especially when considering the driving forces behind the market, and how quickly conditions can change.
Volatility is measured in standard deviations with currencies group in either high or low categories depending on how far their exchange rates deviate from the mean value. Forex pairs which high liquidity such as EUR/USD and USD/CHF experience lower volatility than cross pairs such as AUD/JPY and GBP/JPY, which experience much higher volatility.
The more volatile the market is, the more chances traders must acquire and get rid of financial instruments says Louis Schoeman from Forexsuggest.com. Traders make use of various trading strategies to harness the volatility that exists in the forex market including trading news releases, using charts and indicators, trading breakouts, and more.
The forex market is the most accessible market of all and has lower transaction costs than others. Traders do not need substantial amounts of capital to start their trading journey. Traders must, however, note that brokers, depending on the type of broker, charge fees differently.
Where one broker may charge flat rates, another may charge according to the financial instrument traded and the market conditions on the day of trading. However, due to the high liquidity, these fees are less than when trading other financial instruments.
In addition, traders have access to the forex market 24/5, providing more opportunities to trade.
Despite the time zone traders are in, the forex market can be accessed. This is due to major forex centres being spread across the globe. Should one market close, another will be open, or there are markets that overlap one another.
With the second wave of the Covid-19 pandemic still wreaking havoc around the world and with governments keeping stringent lockdown and quarantine measures, there is still a vast number of people who are expected to work remotely from their homes while others seek opportunities to earn an income from home.
With advancements in both software and hardware, traders have access to some of the best trading tools and resources to add a competitive edge to their trading. Trading is not limited only to desktop computers but can be done from the palm of the trader’s hand, wherever they might go.
With technological advancements, the forex market has become one of the most lucrative markets to trade on. There are numerous trading software developers offering the use of their platforms with these containing all the tools and resources that a trader needs.
In addition, due to technological advancements, such trading platforms allow for seamless integration of the trading account across a variety of devices. Traders can now access their trading accounts from anywhere in the world if they are connected to the internet.
This way, traders have immediate access to whenever a trading opportunity presents itself in the market, with emails, SMS, and push notifications used to alert traders of such opportunities.
4. Endless Possibilities
When trading forex, there is a substantial number of trading strategies that traders can use along with various indicators and other tools to help them navigate the forex market better, allowing them to refine their trading skills.
In addition, tools such as leverage also make forex trading more lucrative, when used responsibly.
The amount of money which can be made in the forex market is uncapped, making the profit potential of forex trading truly limitless. It provides an ideal trading environment for both beginner and professional traders.
However, the level of profitability that traders achieve will depend on their expertise, risk, money management, and the validity of their trading system. Traders have the option of either learning about various trading systems and strategies, or they can develop their own.
The forex market is heavily regulated, however, there are still brokers out there who do not have the necessary regulation. For this reason, traders are always advised to only deal with brokers who are overseen by strict and reputable regulatory entities to ensure the safety of their funds.
Brokers who are regulated by reputable entities fall within an atmosphere which is constantly being tightened, with the aim at providing traders with increased safety and security. There are several reputable entities regulating and authorising some of the best forex brokers in the world.
Some of these regulatory entities include:
- The Financial Sector Conduct Authority (FSCA) in South Africa.
- The Financial Conduct Authority (FCA) or the Financial Services Authority (FSA) in the United Kingdom.
- The Cyprus Securities and Exchange Commission (CySEC) in Cyprus.
- The Australian Securities and Investments Commission (ASIC) in Australia, and numerous others.
6. Ample chance to practice
When trading forex, traders have the opportunity of opening a demo account with a forex broker. It can serve as a practice account for beginners, or a risk-free account for traders to test their strategies and explore what the broker has to offer.
In addition, with the virtual funds that traders have, they can navigate and explore all that the forex market has to offer, how it works, and numerous other possibilities.
7. Bonuses and promotions
There are numerous forex brokers who offer traders, both new and existing, with a variety of bonuses and promotions to either get traders started, or to help them along the way.
Some bonuses offer traders with the chance to gain back on deposits while others eliminate the need for an initial deposit. Active traders are also rewarded graciously with cashbacks and rebates when trading high volumes.