Photo: AP Images
Forex tends to be a financial topic that seems appealing but out of reach for many. Why? Unless you travel in certain financial circles, then you don’t really hear much about it or about the experiences of many people who actually utilise it successfully to make money.
But it seems so interesting and an easy way to make money! I’d love to one day fancy myself as a Forex trader but there’s so much to learn amidst concerns around the sputtering US economy.
For some traders, these concerns may cause them to stay on the sidelines until economic conditions improve.
Consequentially, there’s been a fall in transactions on Forex, still, they continue to attract a large user base. Today we’ll talk about why that is: the appeal of Forex, risks and types of trading accounts.
The Appeal Of Forex
Despite a global fall in transactions, Forex attracts a large user base because the bar for entry remains low (around $25) with free training to do so. It remains a viable alternative for traders concerned about the future of the US economy. Forex allows the trader to sidestep US economic issues and trade on foreign currency as a portion of their investment portfolios. Forex is also available 24 hours a day and all you need is an Internet connection to access it. Another factor that makes Forex appealing is the potential to make a large profit on a relatively small investment.
What Are The Risks?
With so many pros inherent with Forex trading, there are some risks associated with it that one must consider.
- Internet: One must make sure that their Internet connection and computer are running smoothly at all times. Of course, we all know things happen, servers shut down and our laptops/PCs mysteriously freeze or shut down depending on the current activities. This can affect transactions in process so be aware that the things can happen during the course of a trade.
- Greed: This one is easy. With the bar of entry so low and the potential to make great money high, it makes sense that some may get into this with eyes bigger than their wallet can manage. Be sure to utilise the proper stop loss tools to minimize risk.
- Economic Conditions: Since ongoing issues within foreign and domestic economies can change in an instant, it is important to remain abreast of all issues and how they can possibly affect your standing on the foreign exchange market.
Are There Risk Free Forex Trading Accounts?
Yes, there are risk free practice accounts that allow you to practice without losing your own money. Once you’ve tested the demo account, then you can move on to a funded account to get started.
What Types of Forex Accounts Are Available?
Take a look at the trading software from Alpari as it lays out the trading accounts available to the novice and experienced user. You’ll see there are accounts ranging from relatively small deposits on up through large accounts which require more capital.
DON’T MISS: 15 Great Homes That Are Priced To Sell >
Business Insider Emails & Alerts
Site highlights each day to your inbox.