Before we get into the details of why Forex is such an attractive market for many people, let’s take a quick look at what Forex trading actually is.
Forex or “Foreign Exchange Market” is the marketplace where currencies are traded.
The global need of governments, companies and other market participants (including private traders) to exchange currencies is the main reason why the Forex market is the largest, most popular and most liquid financial market in the world. In Forex, “the whole world” trades!
Forex Trading when and where you want!
Although some of the reasons why you should trade Forex might be obvious from the introduction, let’s start from the beginning:
Why trade the financial markets at all?
Why should anyone trade on the stock exchanges or financial markets?
Well, among other things, to gain more independence over one’s economic future without having to rely on an employer or other circumstances.
Financial independence through Forex trading – for you, as for the majority of people, this sounds almost too good to be true. If you want to increase your chances of actually achieving this independence, then you should be prepared to invest time and resources in your education.
Low trading costs when trading Forex https://forex-up.com/.
Most Forex accounts trade with no or low commission.
If there are trading fees, it is only as a “mark up”: a markup from the provider on the spread. Without commission, you pay only the forex spread for buying at the ask price and selling at the bid price. The lower the spread, the more likely you are to make a profit!
Also important to note is the low initial deposit to activate the account:
The barriers to entry are much lower in Forex than in most other financial markets. This is one of the reasons why and how the Forex market has been able to grow so fast.
- Things you should look out for before trading Forex
- Things to look out for when trading Forex and choosing the right Forex broker are of course.
- The right regulation
Again, the Forex market is a decentralised marketplace. This means that it is not tied to one place and therefore not to a central regulation.
This makes it a little difficult for the ordinary forex trader to find the right broker. The solution to this is to be regulated in the country where the firm is also based. In the US, UK, EU, Japan, Australia, Cyprus and many other countries or regions, there is a government or semi-government agency responsible for licensing and supervising the brokers. Brokers are usually proud of their licensing and use it as a selling point.
In this case, all information is available on the trader’s first request. However, if it is an offshore broker that is not regulated in the country or region (e.g. European Union) in which it offers its service, obtaining information can be difficult. Intransparency, no physical address and telephone number of the broker to be found on the website and other irregularities should make you suspicious and cautious!
There are also many reviews of unscrupulous brokers, most often they are blacklisted. The blacklist is your helper in choosing the right broker.
How do I keep an eye out for forex scammers?
The surest sign that this is a trading scam is the promise of unusually high profits with little or no risk. First of all, let’s be clear that there is no such thing as a profit guarantee. If there were, no one would share them. Some of these offers may seem tempting, especially for beginners. But nothing in life is free. So if the suggestion sounds too good to be true, it probably is.
Here are some simple rules to avoid trading scams:
- Don’t believe empty promises.
- Beware of software that claims to contain a secret formula for success.
- Don’t install any software until you are absolutely sure it won’t harm your computer.
Another sure signal of a trading scam is that scammers never allow themselves to be regulated by any financial authority. SCAM forex brokers. So never forget that a genuine, trustworthy CFD or Forex broker is always able to prove its legitimacy. If you suspect that a broker is being untruthful with its regulation, you can contact the relevant authority and obtain a list of regulated brokers as well as a list of regulated firms that have been prosecuted. This will make it easier for you to make sure that you can trade safely with these brokers.