A guide to Build your platform on Forex trading
Forex trading is a fantastic way for investors interested in the stock market and other highly speculative options but require something more accessible. Forex trading allows you to invest your money through various currencies, stocks, commodities, and indexes across the globe! These markets typically open 24/5 on weekdays and holidays. This allows investors to get involved with worldwide investing while still having time to work or enjoy their day off!
Value for beginners
For those new investors looking into building a portfolio of stocks over time, it might be wise for these people to get started with forex first. Essentially, if you were starting with your investments as a beginner investor trader, you would build a portfolio of stocks across the globe. With forex, you don’t even need to look at stocks! Instead, you can actually trade with foreign currencies and make money off those fluctuations in the currency that happen every day.
For example, if the currency pair is EUR/USD and goes up 1%, every 100 Euros exchanged for dollars, now 101 euros equals 100 dollars. So, if investors had $1000 worth of Euros in their account before any trading happened, they would now be able to buy $1010 worth of goods or assets with that same $1000 amount! This is the beauty of forex trading as a beginner investor because it allows you to stay away from changing markets such as equity investments and works alongside them.
If the markets in America typically rise around 6% per year, they only go up 3% in Germany. It would be wise to put more into German Euros because your money will have greater benefit for growth and development. If the world markets typically average out to 5% gain each day, then perhaps a mixed basket of different currencies will be right for you with an average of 3-5% gain per day.
Choosing a broker
Choosing a forex broker is best to check into the reputation that they hold with their clients and the general public. You can usually find out how well it has done over a period of time by looking at user reviews on websites like Yelp or other social media sites such as Reddit or Facebook. Look for currencies that have been doing well over time because these will be the ones you want to invest in if you are trading long-term! We suggest cm trading as they are a reliable broker who is FSCA regulated.
It would help if you also looked at the speediness with which trades happen and the quality of customer service that the money transfer business provides where their currency pairs will be based. Things may take longer when dealing with overseas countries, so it is best always to be prepared for that! And if you need help, it is best to look for a forex broker who can answer your questions and provide quick service based on the quality of reviews with their customers.