Many times this question is being asked by the beginners, who are looking for a startup in Forex trading, and Is Forex trading good for beginners?
When comparing Forex trading with other types of businesses, Forex trading is one of the best businesses for beginners, For the below reasons
- You can start with a low budget as 10$ only.
- You can practice Forex trading with a demo account in the real market without losing your money.
- Leveraging your money which will allow you to trade with 100 times your budget. And a lot more
Usually, unrealistic expectations among the beginners are the main cause of the failure in the forex trading business.
It definitely takes time, education, a winning strategy, maintaining the right trading mindset, and sticking to your strategy properly.
Everyone involved in forex trading wants to know whether it can make a profit or not. The answer to this question is that forex trading can make you a large amount of money if you get in on the right side of the market and then pick up your profits properly and timely.
On the other hand…
you can also lose your stakes just as easily by being on the wrong side of the market. If you are looking for a start-up with forex trading, you must educate yourself with the basic information about trading forex.
Owing to its easy accessibility, 24-hour trade schedule, and high liquidity; forex trading has proven as the most popular business.
While it is becoming so amazing
It can motivate both young graduates and experienced professionals to make their careers in the forex trading business. Here I have some critical aspects and all the reasons that “Why forex trading is good for beginners”.
1. Trade with as low as 10$
It can be an ideal business for beginners who don’t have so much money for making an investment. Since the spread is tighter in the forex market anyone can start trading with a small amount of initial investment.
Unlike other markets where you can’t trade without a larger capital, Forex allows you to start your trading even with just $10.
Besides, it offers various features that enable you to grow and earn more.
Margin trading with a high leverage factor can give your capital a boost and increases your earning capability. While these margins contain some risks, it also makes it easier to make more profit.
2. Access your platform from anywhere.
The biggest advantage for newcomers is accessibility,
It is easy to enter a Forex trading market as compared to the other markets or any other business for that matter. maybe you want to trade infront of the beach or maybe at the top of the mountain.
For younger people, it offers a great opportunity to start a business without any restrictions. However, it requires some knowledge and skills related to the forex business in order to be successful.
3. Forex Demo Accounts (Trade Without any Risk)
Even though the forex market offers great opportunities for traders, it also involves risks.
Before diving into the trading forex with a live account, it’s best to try trading forex with a demo account. A demo account is a risk-free account that gives you the same forex trading experiences as the real accounts.
** A demo account allows you to practice trading forex with no risk, truly giving you a chance to understand all the market movements and financial commodities. It also helps you to develop risk management strategies without any financial commitment.
You can start your practice account through a simple registration. almost all the brokers out there will allow you to create a demo account.
While you have a great chance to get familiar yourself with all trading features and practices, get through yourself to numerous tools and features of forex trading without any cost.
Practising with unlimited demo funds will help you to understand the trade and risks.
After being equipped with all the basic experiences, you will be more likely to be a successful trader.
4. Low Transaction Costs
The transaction costs are very low in the forex trading market.
Typically, there are no direct commissions and brokerage, and most brokers make money from the difference between the currency values, which is called the spread. Spreads are measured in pips and factored into the value of a currency pair.
When a broker offers you a currency pair, he will quote a bid (Selling) and ask (buying) price, the pip difference between two currencies indicates the spread.
You don’t need to pay extra money for brokerage fees, as compared to the other capital and financial commodities trading where the brokerage structure is different and the trader must have to pay fees as brokerage charges.
5. High Liquidity
Due to the expansion of the forex market, it owes a high liquidity ratio.
The forex market has the largest number of stakeholders, as compared to the other financial markets, this factor makes the liquidity of the market highest.
The high liquidity in the forex market allows you to make transactions, easily and quickly mostly at a low cost. Higher liquidity means that even huge deals of currency take place easily without any significant value deviations.
This also eliminates the chances of price exceptions and price manipulation.
It enables dense spreads that encourage more convenient pricing. So,,,, you don’t need to worry about the variations during the opening and closing times, or slack prices during afternoons, which are the emblem of capital markets.
**Anyone can analyze the same price models throughout the non-stop trading hours.
This also creates opportunities for traders to speculate on the value of a currency pair of just a few pips.
6. 24/5 Hour Schedule
Forex trading has great opportunities for newcomers including its non-stop working hours.
The rolling hours of the market is an edge for the traders because they are not bound to make transactions within a particular time frame. if you are working from 9-5, That is OK, you still have plenty of time to trade the market and earn some money.
Forex trading is not subjected to the opening time of any centralized system. As long as there is a market open anywhere in the world, so the deals can take place.
Forex market is open 24 hours a day and 5 days a week from Sunday to Friday.
On a Friday…
Although the forex market is closed for retail traders over the weekends, the currency rates will continue to move. Therefore you should include this factor in your risk management strategy in order to mitigate any potential risk.
7. Availability of Leverage
The beauty of forex trading is that a small amount of capital can control a larger contract value.
** Leverage allows a trader to make more profits along with risk mitigation. It allows you to open a position on the forex market by making a small deposit and trading in a large especially in the full value of the position.
For example, a broker offers you leverage by 1:50, it means that a $50 margin deposit will enable you to trade in currencies of worth $2500 —- In the same way with $500 capital, you can trade with currencies worth $25000 and so on.
It seems so amazing but its a double-edged sword.
While working with leverage you have equal possibilities of PROFIT and LOSS. A proper risk-management strategy is a must element while working with leverage.
You need to be more careful and conscious because a tiny wrong step may lead you to a big loss. There are many risk-management tools and features available, you can choose your own.
Tools to help
Forex trading offers a range of tools and features that enables a newcomer to learn and better understand all the concepts and measures of forex trading.
Anyone can easily get access to a range of tools and features that are designs to help you to improve trading, growing profit, and mitigating risk. You can learn these tools and apply them to increase your revenue.
Keep In Mind That…
The forex market is affected by many external factors including, domestic economic stability, the global economy, trade deals, current affairs, natural disasters, and fiscal policies. All these factors influence the forex market in some way,
So they make it a highly volatile market. It means that a small fluctuation in currency value can subsequently give you the opportunity to earn high profit. Since it also contains some risks.
trading with a conscious mind may lead you to a definite profit.
Forex trading is the best business you can ever have as a beginner, from the start you can easily define if Forex Trading is suitable to you and your life style or not.
And it does not take so much time to test if Forex trading will be beneficial for you. In fact, in less than a day you can decide if you can have a clear answer if Forex trading is your or not.
Let us know in the comments below, How did you know Forex , and what from the points above made you believe that the Forex trading is for you.
Was it the Freedom of trading any where in the world , or maybe the low budget to start trading? let us know below.