The world we live in is erratic and always changing, and if you’re in the field of finances you observe this all too often. Right now, the world is in the middle of a pandemic, and we’ve seen how much that can affect businesses and the economy. Many companies are closing or have stopped operations indefinitely.
By now you’re also probably aware of currency trading, or Forex. While it’s relatively known, not many people take advantage of this form of investment due to a lack of information. At worse, many people assume that it’s trading between coin collectors or makers. Yet, people from all over the globe are taking this opportunity to research and study Forex, resulting in a surge that might make you wonder why people are choosing this less-known option.
So why should you consider Forex over other investment mediums? Here are a couple of reasons why:
Low Barrier of Entry
In comparison to other financial investments, the trading capital you need for Forex is pretty low. Many Forex brokers have ‘micro’ trading accounts, with a very low capital requirement. You can start trading forex for as low as 100USD, or even 50USD, if you find a broker that allows it. A potential benefit to this is you won’t be spending a lot of money ‘feeling out’ this new medium of investment.
Easy to Access
You don’t need to call up a trading company as well since you can basically do everything online. Get on a computer or even a smartphone, register, submit necessary documents, and you’re done. A lot of Forex brokers have online platforms (some are entirely online), making starting really easy. You can even set up a demo account so you can practice before you actually spend money on it.
Unlike the stock market, which has limited working hours, Forex operates on a 24-hour basis. Essentially, Forex never sleeps. What this means for you is that you don’t have to invest a large amount of time just to trade. No need to wait for a specific time of the day to do business, instead you can trade whenever it’s convenient or comfortable for you.
Yes, you read that right: fewer fees. There aren’t any brokerage fees, or government fees, any other fees normally associated with financial investments. How do brokers earn their keep? Through a “spread”, a fee that’s built into the buying and selling price of the Forex pair you’re trading.
It Can Be Automated
Once you’re familiar enough with it, you can automate the process, buying and/or selling at certain points. You can devise your auto-selling strategy to utilize the day-to-day changes, removing the need for tiring manual inputting of your decisions. Of course, you need to study how the automation process works but it’s there, it’s accessible, and you can do it.
The stock market has crashed and many people don’t know what to do with their investments. Many don’t even know where to invest anymore. But just like how many trading advice goes, you should invest more when the market is down.