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Lindsay R

Is Forex trading as simple as it's portrayed?

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Hi there,

I want to engage in trading. After comparing several instruments, Forex appears the most friendly and newbie friendly.Is this true or there are hidden complications I am missing?

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Hi Lindsay,

Every investment has its advantages and disadvantages, most of which are dictated by market forces beyond a single person or entity’s control. Maybe we shouldn’t call Forex trading simple, though that may be true compared to some other investment vehicles. However, we can confidently say that Forex trading is made easier and friendlier by the following factors.

· Forex traders can make higher profits in a short time after paying only a small amount of deposit.

 

· Similarly, the fees and commissions involved in Forex trading are quite minimal. This is because when you trade Forex, you pay the spread and not a commission.

 

· The most significant advantage of the Forex market is its high volatility, which makes it a great environment to trade in as volatility creates more chances to buy, sell and make ---+a gain.

· The Forex market is also highly receptive as the capital requirements are low. Similarly, it’s easy to join as you simply sign up online and start trading, and you can start with a demo account.

· The Forex market is one of the safest since it’s highly supervised, with their brokers having several authorities regulating them. To enjoy this benefit, though, you should only trade with regulated brokers.

 

· Forex trading also offers growth because you can advance to an account manager when you have mastered the trade. Once in this position, you can earn commission by managing accounts in addition to your trading profits.

 

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Hi Lindsay,

Great question.

Like other investments, Forex has its pros and cons, most of which rely on market forces. Though calling it simple is an overstatement, several factors make Forex trading friendly to beginners. 
For starters, you can make a killing from small deposits in a short period. The fact that it runs non-stop closing briefly only on weekends means you can trade as you please. Not mentioning the minimal fees, the size of your trade notwithstanding. Because the market is highly supervised, you’re less likely to lose your money to scammers. 
Just check if the broker is registered with the relevant regulatory bodies to confirm legitimacy. Best of all, you can test the waters with a demo account before starting actual trading. You can even advance to managing accounts after you master the trade. However, Forex is not an avenue for quick riches. Your earnings depend on your trading strategy and the amount you invest. Leverage is also a risk. While it increases your buying power, leverage exposes you to losses.
 

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