When it comes to choosing a new hobby, you need to find something that you will genuinely enjoy and find rewarding. If you’re someone who is driven by money, then a good place to start can be with an activity that’s main aim is to increase your finances, such as trading forex. There are many different investment and trading options out there but buying and selling currency holds various advantages and can be easy to get started.
Reasons to Trade Forex
There are many benefits and reasons to contemplate trading forex, especially over some other trading opportunities, such as:
- No commissions: Most forex brokers use the bid/ask spread, with no clearing, exchange, government or brokerage fees
- 24/5 trading: During the week the forex market is constantly open from Monday morning in Australia to Friday evening in New York
- Volatile market: The forex market is the largest and most liquid in the world, with high levels of volatility presenting many opportunities to profit
- Leverage: A small deposit can control larger contract total value with leverage, allowing traders to make good profits from relatively small openings
- Accessible: Some forex brokers offer mini and micro trading accounts, where you only need a small deposit to get started
What Do I Need?
In order to begin trading forex you need to open a trading account. This will allow you to access the market and begin buying and selling currencies in real time. Many accounts also offer access to a demo account, so you can practise first.
You’ll also need enough money to meet at least the minimum deposit and a good understanding of how the markets work. Various other tools can prove useful, such as a forex charting app, economic calendar and a financial news app to stay up to date with the latest market developments.
How to Get Started
Once you’ve opened an account with a forex broker and have all your tools in place, you’ll nearly be ready to begin. The final thing you need to get started is a strategy and there are plenty of advisable forex trading strategies for beginners.
The basic concept is the same as with any investment, buy currency low and sell high. Depending on your lifestyle you may want to pick a day trading strategy, where all positions are closed at the end of each trading day, or a longer-term option where positions are open for weeks.
Choose a strategy, do plenty of research and practise first and you could be well on the way to profiting from your new hobby.