Online forex trading without investment

- the authentic broker what is no deposit bonus?

Forex trading without investment

Top forex bonus list

Forex is a highly volatile market that dwells in currencies. It remains open for 24 hours a day, 5 days a week. Every investor, whether new or veteran, invests money in this fluctuating currency world with the sole aim to make profits. However, it often turns out that potential traders interested in setting their foot do not have enough monetory resources to take a stride. But, with no deposit account and its associated amenities, forex trading without investment is now possible.

What is no deposit bonus?

To put it simply, brokers make every effort to lure new customers and increase their trading base. To do so, they offer a type of trading account where a new trader can start investing without paying a single penny from his store. His broker provides him a welcome bonus that can be used to perform trades. However, this amount is not immediately refundable. The trader has to close a number of trades successfully in order to be eligible for claiming this gift.

How does forex without investment work?

Once you register yourself and instigate an account, the bonus is provided to you with immediate effect. Most brokers provide enough cash to complete a couple of successful trades. Traders have two options here. Either to trade with the given amount or leverage it; by opting for leverage, he or she can look to escalate his position giving him or her chances of greater profit.

Leverage ratios are normally in the ratio of 10:1, 20:1 or 50:1. For example, john wants to start forex without investment. His welcome bonus reads $2,000. He can opt to trade with the given amount or leverage it with any of the given ratios. A 20:1 ratio will provide him an opening sum of 40,000. Such high amount helps him to trade into bigger currencies and increase his chances of reaping profits.

How to choose a no deposit account?

Since now you have garnered adequate information about no deposit accounts, it must be quite tempting to make your first stride in the market. However, one should perform a few checks so as to ensure that this forex trading without investment goes hassle free.

- the authentic broker

To get the taste of forex without investment, it is essential to sign up with an authentic broker. Legal and trustable brokers such as lite forex guarantee authenticity of all documents and makes sure that your money is safe with their impeccable privacy policies. A reliable broker will be fully transparent with its clauses and will lay out clear statements regarding the use and redeem of its welcome bonus.

- compare to choose

Experts recommend comparing a number of forex brokers before settling for one. Comparison should be preferably made of their bonus sections. It is ideal to choose a perfect blend of special promotions as well as forex trading options. Check out for impractical no deposit bonus amounts. These often turn out to be frauds and can ruin your approach to trade forex without investment.

- forums and review

Participating in forums is an important tool to get idea reliable brokers along with their schemes. Have a talk with eminent and veteran traders who will be able to provide valuable insight on choosing the correct service.

Final words

So, if you are looking to set your foot into forex trading with a no deposit account, it is important to perform a check of the above points in order to assure a successful forex trading without investment plan. Happy trading.

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of liteforex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of directive 2004/39/EC.

How to make money in the forex market without investment?

Six ways of making money with a forex broker

We all know that forex is a currency market where currencies are bought and sold.

In order to earn money at forex, you need to have a currency of one country, which you can exchange for a currency of the other country and make a profit. That is true; however, if you read more about investing at forex you will know that it is possible to earn money at forex without making investments.

You will nevertheless have to invest your time and energy, but it is true - you can start with $0 and make millions. Just like those billionaires. You can always start with demo-contest or an affiliate program.

Read about the ways of earning money at forex without the initial capital.

Trading in forex without investing

First of all, you should understand that it is impossible to make a high profit without making investments. If you decide to become a real trader and earn big money in the long-term prospect, you will need to open an account and deposit money on it.

Do not trust information assuring you that it is possible to earn millions without investing a penny. High profits without investments are impossible and statements promising this are questionable.

And still, it is possible to earn money at forex without making investments, although the profit maybe not too big. In this case, you will earn money not in the market but will receive it from your broker. What are the ways of earning money without making deposits at forex? I have gathered the information from different sources and will review it here. So let's figure out with the ways to make money with forex without investment.

Trading on the account without a deposit

You open an account and your broker deposits some money on it. You cannot withdraw this deposit but you can trade using this fund. If you trade successfully a broker will allow you to withdraw your profit. This option enables a trader to earn at forex without investing money and, which is more important, to gain valuable experience of work on the trading platform.

A deposit, which a broker puts on your account, usually ranges from $5 to $70. With the help of this fund, you can start trading without investment on the real trading account. What is the benefit of a broker? It is just a promotion, and a broker is prepared to spend some money on it.

Affiliate programs

Do you know how to make money in forex without actually trading? Just choose the broker and promote it to get the commission from people you attract. Today forex affiliate programs are becoming more popular among traders as they give a chance of earning money without investing. Participation in the affiliate program means that you attract new clients, who are ready to work in the forex market and receive a bonus for it. Depending on the terms and conditions of an affiliate program you sometimes receive your bonus regardless of the trader’s success in trading; your interest also depends on the terms of the affiliate program. You can calculate the expected earning here.

If you have your own site or a blog, affiliate programs is a good option of earning money for you, as you can advertise a broker on your site.

You can open an account with a broker where he will transfer money for the clients attracted by you. You also can use this account for trading at forex to make more money. So, you start forex with no money and now you have investments to trade. If you do not know how to trade profitably, you can join the copy trading network and choose the professional trader to start copying his trades to your own account. You can find the traders' list here, draw your attention on profitability, risk level, and the experience when choosing the trader to copy.

So the affiliate programs and copy trading forex system is a good collaboration to earn money in financial markets without investment and make money from forex without trading. Here you can also read a lot of articles about forex programs.

Contests

Some brokers regularly organize contests for demo and real accounts. As with other forms of competition, nature of competition in forex is simple — to come forward in relation to other bidders, increasing your income on a demo account several times in a short period of time, and in the end to get money on the real account as a reward. So, as a participant, you can start trading on forex without any investment. In case of a demo account, you should increase your profit for a certain amount on your account within a certain period of time and finally, you will receive a bonus on your real account. So starting with participating in the contest, you can become a trader at forex without investing money. For now, I found the demo contest with the huge prise finds 10000 USD, and to will this contest you need to trade as good as you can on all cryptocurrency pairs. Cryptocurrencies are very appropriate assets to get high profit because of their volatility. It is really amazing, you can start trading without money on a demo account and if you win you will get the prize money to your live account to trade without investment on it and ear the real profit. To participate in the contest we need to register first here to get an account and then register this account on the contest here. Let's compete? :) let me know in the comments section below about your results.

Comments, reviews and posts on various information portals

Placement of the interesting comments on the forums, participation in the opinion polls devoted to forex and publication of the surveys and articles about forex is often rewarded by brokers. So you can receive a bonus on your real trading account and also gain experience and reputation of a professional market analyst. Brokers are prepared to pay big money for the forex reviews.

Professional forex copy trading and PAMM systems

Some traders are ready to pay interest from their profit to the experienced traders for investing their funds into PAMM-accounts. This is a good incentive for achieving more improvements in trading for the experienced trader at forex. The automated copy-trading systems allow you to duplicate the best traders and communicate on specialized chat with traders community from all of the word.

Hopefully, now you know all about how to make money in forex without investment!

In conclusion, I would like to say that it is possible to trade and gain profit at forex without investing money. Note, however, that for earning large amounts of money a trader should have experience and knowledge of trading and investing money.

It is quite common that traders start to work at forex without making investments, but later they open real accounts and achieve real success in trading. Just remember that it is important to start the first step.

P.S. Did you like my article? Share it in social networks: it will be the best “thank you" :)

Ask me questions and comment below. I’ll be glad to answer your questions and give necessary explanations.

Useful links:

I recommend trying to trade with a reliable broker here. The system allows you to trade by yourself or copy successful traders from all across the globe.

Use my promo-code BLOG for getting deposit bonus 50% on liteforex platform. Just enter this code in the appropriate field while depositing your trading account.

Telegram chat for traders: https://t.Me/liteforexengchat. We are sharing the signals and trading experience

Telegram channel with high-quality analytics, forex reviews, training articles, and other useful things for traders https://t.Me/liteforex

Price chart of EURUSD in real time mode

How to start forex trading without investment

If you don’t have an initial investment for starting a business I believe better to know how to start forex trading without investment. But if you expect high returns without investment, it will never happen. To get high returns you have to deposit a lot of money.

Of course, it is possible to engage in foreign exchange transactions without investment but not make a lot of money at once. For one thing, without investment, you get money not from the foreign exchange market but from brokers.

This will allow you to not only trade without investment but also have a good experience in the forex market. If you do not have a large or small amount of money to invest in forex trading, you can do so by studying this carefully.

I have given you some important facts about it below, check it out and get an understanding of how to start forex trading without investment and make a profit.

Actually how to start forex trading without investment.

Choosing a free forex trading account

Affiliate program

Contestsprogram

Choosing a free forex trading account

You have the opportunity to get a free account and engage in foreign exchange transactions. You can open a free account by choosing a broker who offers bonuses as well as special offers.

XM

Founded in 2009 and it is regulated by cysec. It great for beginners because they provide good educational videos and demo account facilities. In addition, you can trade over 700 instruments and also gives special bonus offers for new clients.

Nordfx

Founded in 2008 and it is regulated by cysec and VFSC. Nordfx gives MT4 and MT5 facilities and also they offer 30 currency pairs, the other one is provided special offers for new clients.

Affiliate program

If you want to make money in foreign exchange without any investment, you can do so through the affiliate program.

This method is becoming very popular nowadays. You can do this successfully without using your money and you can make money without trading.

All you have to do is advise new traders on how to choose a good broker to deal with the forex market. This will allow you to earn a bonus. You can do this by doing a good review of brokers for new traders.

You will get a fee from the brokers if traders registered under the referral link, and you can use that money to make trading if you want. To do this, you must first connect with a broker and open an account.

So if you run affiliate programs like this, you will have the opportunity to earn money without any investment. It will be easier for you if you do this on your own website or blog.

Contests

Most brokers hold open contests for real and demo accounts for everyone. The nature of this competition is to give a real account to the people who earn the most in a short period of time.

Then you will be able to get the amount of money you earned. In addition, you can get some more benefits from this. You will not get real money first but the person who wins at the end of the competition will get real money.

You can use this money to invest in foreign exchange transactions. Because you do not need to risk money.

How to make money in the forex market without investment?

Six ways of making money with a forex broker

We all know that forex is a currency market where currencies are bought and sold.

Read about the ways of earning money at forex without the initial capital.

Trading in forex without investing

Do not trust information assuring you that it is possible to earn millions without investing a penny. High profits without investments are impossible and statements promising this are questionable.

Trading on the account without a deposit

Affiliate programs

If you have your own site or a blog, affiliate programs is a good option of earning money for you, as you can advertise a broker on your site.

Contests

Comments, reviews and posts on various information portals

Professional forex copy trading and PAMM systems

Hopefully, now you know all about how to make money in forex without investment!

P.S. Did you like my article? Share it in social networks: it will be the best “thank you" :)

Ask me questions and comment below. I’ll be glad to answer your questions and give necessary explanations.

Useful links:

I recommend trying to trade with a reliable broker here. The system allows you to trade by yourself or copy successful traders from all across the globe.

Use my promo-code BLOG for getting deposit bonus 50% on liteforex platform. Just enter this code in the appropriate field while depositing your trading account.

Telegram chat for traders: https://t.Me/liteforexengchat. We are sharing the signals and trading experience

Telegram channel with high-quality analytics, forex reviews, training articles, and other useful things for traders https://t.Me/liteforex

Price chart of EURUSD in real time mode

Starting a forex trading company – sample business plan template

Do you want to learn how to start a forex trading business online as a beginner? If YES, here is an in-depth guide on how to make money online with forex trading for beginners.

Though very risky especially for the less experienced, trading foreign exchange on the currency market (also called forex trading) can be an interesting activity as well as great source of investment income. Currencies worth $5 trillion dollars are traded in the forex market per day. So, you can make a lot of money from the forex trading business without investing too much.

If you are been looking to start a profitable business that you can run from the comfort of your home, then you should consider forex trading. One of the good sides of the business is that there are no formal requirements required to start trading forex.

Forex trading simply involves trading in currency. You buy a certain currency when its price drops and you quickly sell it once the price goes up. So, your aim is to make as much profit as possible from the fluctuations in the prices of currencies. Though the principle by which money is made is the same in forex trading, stock trading and commodities trading; both trading methods differ in the following major aspects:

Stock trading involves buying and selling stocks, while forex trading involves buying and selling currency.

The stock market is active for only certain hours of the day, but forex trading is done 24/7.

Insiders and market makers can manipulate the stock market, but the forex market cannot be manipulated.

Forex allows margin trading, which gives you the chance to buy thousands of dollars worth of a particular currency when all you have is less than $100. This is impossible in stock trading (point of correction, margin stock trading option is now being offered by some brokerage houses / banks).

With a little money, patience, a PC, and a reliable internet connection, you can become a forex trader. The ease of starting the business notwithstanding, you will need to know some things and follow certain steps, as forex trading is a very risky business. Here are the steps you should follow to become a forex trader.

Starting a forex trading business online and make money – for beginner

1. Get the basic necessary knowledge

Forex trading is a little bit technical and it is quite difficult to learn on your own; though self learned video tutorials and courses are now available online. However I recommend you learn under the apprenticeship if an established forex trading expert. You should also attend seminars and read courses to further sharpen your skills.

It is also important you read books on business and economics as it will help broaden your insight; especially when trading forex with fundamental analysis. Some basic forex terminologies you need to know include the following:

Base currency: the type of currency you’re spending or getting rid of. In other words, this is the currency you trade to purchase another type of currency.

Quote currency: the currency that you’re purchasing with the base currency.

Exchange rate: this tells you how much of the base currency you have to spend in order to purchase the quote currency (or vice versa).

Long position: you take a long position when you want to buy the base currency and sell the quote currency.

Short position: you take a short position when you want to buy the quote currency and sell the base currency.

Bid price: this is the price at which your broker is willing to buy base currency in exchange for quote currency. The bid price is the best price at which you’re willing to sell your currency on the market.

Ask price: this is also called the offer price. It is the price at which your broker will sell base currency in exchange for quote currency.

Spread: this is the difference between the bid price and the ask price.

However, you must bear in mind that there are much more terminologies to learn than the few explained here. So, you will need to contact a forex trading expert, read books, or browse the internet for more information on the various terminologies used in forex trading. Examples of highly recommended books on forex trading include “trade what you see” (by larry pesavento and leslie jouflas) and “the secrets of economic indicators” (by bernard baumohl).

2. Get trading capital

You don’t need huge capital to start forex trading. This is because you can trade on margin, which means you can take buying decisions worth thousands of dollars with just $50 or even less. On the average, a forex broker needs about $300 to open an account and start trading.

It is highly recommended that you open your trading account with at least $1000. This will help you trade with a bit of a buffer in case of losses. But if you cannot afford this amount for a start, you can start with at least $300.

3. Choose a forex broker

A forex broker is the online platform through which you will access the forex market and do your trading. It is very important that you read the terms and conditions of any broker before you settle with them. This is because some brokers will offer certain options that will be helpful to some traders while being a disadvantage to other traders.

So, you should compare many brokers with respect to their terms and conditions, trading options, and user reviews, and choose the one that you think is most suitable for you. You may want to seek advice from a forex trading expert before choosing your broker.

4. Open a demo account

Once you have chosen a broker, it is time to open a demo account. This is a virtual account offered by the broker for a certain trial period (for example, 30 days), which gives you a feel of the broker’s trading platform and a chance to trade on the platform using play money.

Using a demo account helps you become familiar with the broker’s trading platform and tools. It will also prepare you for trading in the real market. So, don’t trade real money without having tested the broker’s trading platform with a demo account for at least 90days.

Most online forex brokerage companies will allow you to create a free practice or demo account. This is a simulation of the real forex market that allows you to train with virtual money before you start trading with real money.

Forex trading is not the type that you will learn on the go. You have to train extensively to know when to make the right buying and selling decisions. As a recommendation, you should spend several weeks training with a free account until you can make profits consistently and have reduced your rates of losing to the barest minimum. To find free forex demo account, you can search the web.

Since the demo account is just like what you will have in the real market, you should take your time to do enough practice. Try to implement the various expert trading tips and tricks you have learned to see which works best. And try to develop your own trading style and ideas.

Master how to read charts and other indicators, and master which decision to take at what time. It can also be helpful to seek additional guidance from online resources as well as forex trading experts, as this will help you in the early days when forex trading could be very daunting.

Set up a live forex trading account with a reputable forex broker after you have trained enough and built confidence with a demo account. Better yet, simply convert your demo account to a live account by depositing money as per the site’s instructions.

Most brokers offer mini and micro accounts, which means you can start trading forex with as little as $500. This amount will be leveraged into multiplied profits. Keep a note of the strategies that are fetching you huge profits as well as those that are not working for you. The secret to increased profits is to keep repeating what works (until it works no more) and to ditch what brings poor results.

Entering into the real forex market is usually a nervous and exciting experience. Granted, the demo account can prepare you for the technical aspects of forex trading, but when real money is involved, your emotions will come into play.

You will need to maintain self-discipline and do your best to stick with the same methods that worked for you while you were practicing with the demo account. Ignoring your emotions may be very difficult, but it’s possible. If you lose money after your first trade, do not give up. Rather, try to figure out what went wrong, fix it, and try again.

In conclusion, you must understand that forex trading is a constant learning experience. Trading mistakes can incur losses; huge ones at times. Even veteran forex traders lose money on occasions. But you will become a successful forex trader only if you learn from your mistakes and strive to avoid them in the future.

How to start trading forex (4 steps)

Welcome to the world of forex. There might be many reasons why you are reading this article. It could be that your friend or acquaintance mentioned about how they trade and perhaps even make a living by trading forex. Whatever your reasons may be; this article will give you an overview of the forex markets and how to start trading forex … and perhaps make money for yourself.

Step 1. What is forex?

Step 2. Learn forex basics

Step 3: find a forex broker

Step 4: start trading

Step 1. What is forex?

Forex, or foreign exchange is an unregulated market, also known as OTC (over-the-counter) and is the biggest market with average daily turn-over that runs into billions. It is even bigger than the US stock markets. Although due to its OTC nature, no one can really give the correct numbers as to the forex turnover. But nonetheless, forex is indeed a big market and thus allows many market participants. From your neighborhood bank to specialized investment companies, to your friend; the forex markets always offers a piece of the action whoever you are and wherever you are (even from your home).

The basic concept of trading forex is very simple. You trade or speculate against other traders on the direction of a currency.

So, if you believe that the euro is going to rise, you would BUY the euro, or SELL the euro if you think the euro would fall. It’s as simple as that.

Step 2. Learn forex basics

Before you get ready to deposit your funds and start trading there are some important points you must understand, each of which are outlined below.

Forex brokers: in order to start trading forex, you will need to trade with the help of a forex broker. There are many forex brokers out there today who allow you to open a forex trading account for as little as $5. The forex broker is the one who facilitates your buy and sell orders and also allows you to research into the markets (also known as technical or fundamental analysis) to help you make more informed decisions… and of course allows you deposit more funds or withdraw your profits when you want to. ( click here to see our forex brokers rating )

Trading platform:you need a trading platform from which you can place your trades, which are then sent to the broker for settlement. Also, a trading platform is essential for you to conduct your technical analysis and also to see the current market prices. Most retail brokers offer the MT4 (short for metatrader 4) trading platform, which is free of cost. You can also open a demo trading account and practice trading with virtual money to gain the experience required before trading with real money.

Forex trading hours:while you might have heard that the forex markets never sleeps, it actually does. Firstly, you won’t be able to trade on weekends (saturday and sundays). But for the rest of the week, the forex market operates 24 hours a day. This is due to the fact that forex trading is global. At any point in time, you will always find an overlap of a new market session while the previous market closes. What time of the day or which market session you trade plays a big role if you are an intra-day trader or a scalper. This is another vast topic, which we will cover at a later stage. ( click here to learn more about forex trading hours . )

Now that you have a basic overview of the forex markets, here are some final pointers to remember before you start trading for yourself.

What is a pip?:pip is a measure of change in a currency pair’s value and is the 5 th decimal. For example, if EURUSD changes from 1.31428 to 1.31429, the change is denoted as 1pip (1.31428 – 1.31429 = 0.00001). When you trade, the more pips you make, the more profit you have. Ex: buying EURUSD at 1.31428 and selling (or closing your trade) at 1.31528 would give you 100pips in profit. ( read more about forex PIP )

Reading quotes: forex quotes are presented in a bid and ask price (both of which vary by a few pips and from one broker to another). The bid price is the price at which you can buy and the ask price is the price as which you can sell. So, a EURUSD quote would look like this 1.31428(bid)/1.31420(ask).

What is a spread?: spread is nothing but the difference between the bid and ask price. So in the above example, for 1.31428/1.31420, the spread would be 8 pips. ( read more about forex spread)

What is a leverage?: leverage is the amount by which you can request your broker to magnify (or increase) your trade value. Leverage is often quoted in ratios such as 1:50, which means that when trading on a 1:50 leverage, your $100 is magnified to $50000. Leverage is a big topic in itself and it is recommended to read this article to learn more. Leverage is important both in terms of making profits as well as managing risks and therefore, your trades.

What is a lot?: A lot is a unit by which you place your trade. In financial terms, a lot is also referred to as a contract. There are preset lots (or contract sizes) that you can trade. For example a standard lot is nothing but 100,000 units (known as 1 lot). ( read more about lot)

Reading charts: the ability to understand and read the charts is very essential to trading. Depending on your approach, you can choose between a line, bar or candlestick charts and trade accordingly (for example trading based on candlestick patterns). ( read more how to read forex charts)

Placing orders (how to buy and sell): in forex trading, it is possible to either buy or sell any currency pair. Most trading platforms, give you this option. You buy when you think that price will go up and you sell when you think that price will fall. There is a common terminology used in forex trading, which is buy low, sell high; which is an important point to remember. ( read more how to place orders with MT4 )

Order types: besides buy and sell, another point to remember the types of orders. There are two basic order types: market orders and pending orders. When you click on ‘buy’ or ‘sell’ you are basically buying (or selling) at the current market price. A limit order on the other hand tells the broker that you want to buy or sell only at a particular price. ( read more about types of forex orders)

Step 3. Find a forex broker

As mentioned, there are many forex brokers today and therefore it can get confusing on how to choose the forex broker that is right for you. To briefly summarize, remember the following points while choosing a forex broker:

Look for a forex broker that is regulated

See if the forex broker offers a minimum deposit amount

What is the leverage that the broker offers

What is the minimum contract size that you can trade

Bonuses and the terms and conditions (see on our site list of forex deposit bonuses and forex no deposit bonuses)

Deposit and withdrawal types as well as the terms and conditions

Trading methods that are allowed by the broker

We can also help you choose a forex broker by reading our article how to choose forex broker

Step 4. Start trading

Finally, now that you have selected a forex broker to trade with it is recommended to first open a demo trading or a practice account. Most forex brokers offer unlimited demo trading account (but will be deactivated if not used for 30 days). This is a good way to get acquainted with the forex markets and also help you to understand your trading style (scalper or intra day trading, swing trading, etc) and approach (fundamental or technical analysis). You can search for various trading methods and systems or you can develop one yourself when you have a good understanding of technical or fundamental indicators.

Conclusion:

Forex trading is one of the most active and dynamic ways to trade the financial markets. At the heart of everything, it is the basic fluctuations in currency values which drives everything else. Learning to trade forex and understanding the forex markets can give a good foundation to trading other markets such as derivatives or equities.

How to make money trading forex without any investment

How can I make money trading forex without any investment. Simple answer is: you CAN’T make money trading forex without ANY investment. You have to understand what trading forex is 1st.

Forex trading is taking your currency and exchanging it for another. How could you exchange money without first having that money? You can’t unless you stole it.

If you would ask how can you start trading without any investment, I would tell you two methods: get a welcome bonus with a reputable broker or borrow some money. Both of these are very bad decisions, yet they exist.

If you would ask how to make money by trading, I would tell you about studying a lot, making a demo account, trading with small lots only for educational purposes, monitor other experienced traders, learn to control the emotions, find a reputable broker, and so on.

So, in theory, you can start trading without money by getting a bonus. But this does not mean you will make money. In fact, at a practical level, it seems impossible.

I see an answer here presented the $500 bonus as a solution. However, I don’t believe it. You should not expect that there are brokers out there who are so glad to give you $500. Read some lines from the terms and conditions:

The company reserves the right to cancel bonus.

Profit received from trading with the $500 bonus is available for withdrawal only after completing certain amount of trading operations on the replenished real account: for every $5 of your profit made on bonus account to become your asset, you must trade 1 lot (100 lots on the account type micro).

So, you can’t take your profits ( in case you made them, which is almost impossible in 7 days ) without making a deposit. It’s simply a marketing trick and there is no sense to believe in such stories.

Borrowing money is a theoretical method, but I would not advise anyone to do it.

So if you want for real, there is no to make money in forex just so, out of thin air. In fact, even if you invest your hard earned money, there probability that you will lose it is higher.

Online forex trading south africa for 2020

The benefits of forex trading cannot be overemphasized. Many people in south africa are already going into it. It will not be a bad idea if you too venture into it today. The earlier you do that the better for you because of the money-making opportunity that resides in forex trading. If you feel like firing your boss and you want to do it quickly, one of the best ways to do that is to venture into forex trading. While forex trading may be profitable, you also need to understand that it has its challenges. You need to bear all the challenges in mind so that you will not end up as an unsuccessful forex trader. In this onlineforextrading.Co.Za write-up, we will show you some of the very important things you must bear in mind in online forex trading in south africa.

Best forex trading sites in south africa

Advantages of trading forex

We will mention some of the advantages and also intimate you about the challenges in it.

It is open for 24 hours a day

Forex trading is not like your 9 to 5 job. The door to your store or office may close at some point during the day. This is never the case with online forex trading. As a result of this, forex traders in south africa can access their forex trading platform without hassle. If you feel like trading during the day or night, the door is always open to you. The constant availability of the forex market all day long makes sure that everyone is welcome here. What is more, the 24-hour availability is global. Virtually anyone can access the market from any location on earth. There is always an open market somewhere across the globe all day long. So, you can trade forex all day long. Whether you do forex trading canada in toronto or you in britain, traders get the same benefit.

The forex market opens in sydney australia by 1 am on monday south african time. This time is synonymous with 5 pm on sunday in sydney australia. The market remains open throughout the week to close in new york at 5 pm on friday. This time is equivalent to 11 pm on friday in south africa. So, you can have fun and make money via online forex trading from 1 am on monday to 11 pm on friday.

High liquidity

One other feature that makes forex trading attractive to south africans is its high liquidity. As a result of this, your investment can grow very fast in the forex market. Forex trading involves the movement of laughs amount of money with small spreads. The spread indicates the difference between the bid and ask-prices of any asset.

Low transaction cost

One other outstanding feature of forex trading is its low cost of transactions. The cost is also the spread. It is the money or fee you pay to the broker each time you open a buy or sell position. The cost covers the work of the broker to facilitate that particular trade. The spread is measured in pips. Pip is the 4 th place after the decimal point in the price of the asset. It is also the 1/100 of a percent. If the ask price is 1.3246 and the bid price I 1.3244, then the spread is 2 pips. Aside from the spread, you may also have to pay commission to the broker. The commission can be variable or a flat fee. The variable commons depends on the amount of that particular transaction.

Leverage is available

Leverage is a kind of money you borrow from the broker to trade forex in south africa. Forex leverage makes it possible for the trader to open a large position with a small amount of money. The extra amount you need for such a large position is provided by the broker. Leverage will make it possible for you to trade online forex trading with a higher amount of money. The money you can stake will be far higher than what you have in your trading account if you use leverage. If you use a leverage of 50:1, it will boost your capital by 50. So, the broker will support every $1 you have in your account with $50. It will enable you to control up to $50,000 with just the $1,000 that you have in your trading account.

High-profit potential

One other benefit of forex trading is that you can make a profit without hassle. Trading forex allows you to make a profit when the price of the asset is rising or falling. This means that the direction of the price of an asset will not be a hindrance at all. You can buy it when you think the direction of the asset will move up to make a profit. You can also sell to make a profit when you think the price direction will go down.

Buying is going long and selling is going short in forex trading. Currencies in forex are in pairs. The pairs are the base currency and the quote currency. When you are buying or selling the base currency, you are automatically selling or buying the quote currency respectively. If you want to buy the EUR/USD, it means you are buying the euro and selling the USD. This is also vice versa. This is not like what happens in the stock market. In the stock market, you will first borrow shares and sell short forex trading allows you to sell a currency that you do not own. They call it the contract for difference (CFD).

Forex trading has a lot of benefits and we mentioned any of the above. At the same time, you need to understand that forex trading has its challenges. If you want to become a profitable south african forex trader, you need to be aware of these challenges too. Good knowledge of the challenges will help you to prepare better. It will also help you to focus better. In the next section of this write-up, we will enlighten you about some of the challenges in online forex trading.

Challenges of forex trading

Overtrading

Overtrading can “kill”! Yes, it can kill your trading account. You should avoid trading too often if you want to be a successful forex trader. You should also avoid risking too much of your capital on any trade. Overtrading is one of the reasons why many beginners in forex trading lose money consistently in forex trading. Why do people overtrade in forex? It is usually because they have unrealistic expectations from forex trading. They want to make big money quickly from trading and they get their fingers burnt as a result.

Overuse of leverage

Leverage can help to boost your account in that it increases how much money you can control as a forex trader. Be that as it may, a responsible trader will use leverage very carefully. While leverage can boost your profit, it can also cause you a great loss. Responsible use of leverage will help you to manage losses better. It can help you to reduce the loss you generate and prevent a total loss of your capital. You should see leverage as a two-edged sword if you want to be a successful forex trader in south africa.

Leverage can make it possible for traders that have a very small capital to still make a huge profit. It can also cause you to lose all your capital if you are not careful. One of the best ways to manage leverage well is to develop a good money management strategy. You should only attempt to increase leverage as your account increases. You should only risk a small percentage of your capital per trade. Also, you should always use a stop loss each time you trade forex. Stop loss will help to reduce the amount you record as a loss.

Trading addiction can be damaging

A successful forex trader will never chase the price. You should only trade forex if the signal is clear. It is not in your best interest to force the market. You should only trade if the situation agrees with your online forex trading strategy. If you chase the market, there is a good chance that the market will move against you. Such a situation can put you in a very serious psychological problem. A good trader will have a good entry and exit strategy. If you enter and exit the market without a proper plan, you will never be a successful forex trader this way. As a forex trader, you do not have any control over the market. You need to always bear this in mind.

As a trader, you must have adequate patience to wait until the conditions are right before you one a trade. Unfortunately, many forex brokers lack this patience. Always keep it in mind that the forex market will always be there. Even if you miss an opportunity today, another opportunity welcome tomorrow.

Poor risk management

Many traders fail because they lack proper risk management. One of the ways to manage risk in forex trading is to always set a stop loss and a take profit. This will help to improve your chance of success in online forex trading. You need to know how to implement the mechanism of risk management. This way, you can easily put a lid on losses and increase your profit gradually. The volatility level of the market can also determine what you set as your take profit or stop loss.

You should also set your risk/reward ratio properly so that you can become profitable as you trade forex. The risk/reward ratio can be 1:3 or 1:2, depending on what your trading goal is. Your ability to take a risk can also determine your risk-reward ratio. Before you venture into live trading in forex, make sure you practice extensively via a demo. You should consider practicing for a couple of months before you go into live trading.

Forex trading – what nigerian investors must know

Forex trading involves the trading of currencies against each other, in pairs. For example, if you have ever been to a foreign country, you might have converted your nairas to the currency of the foreign country via your bank or currency changer at the current exchange rate. This exchange rate is decided by a marketplace that is global and decentralised called forex market.

This marketplace is very dynamic and highly volatile during certain times as the movement of currency keeps changing depending on various macroeconomic indicators. Hence small investors should exercise caution and be fully aware of the risks involved as your invested capital may deplete in a matter of minutes.

What is retail forex trading and how it works?

Retail forex trading simply means forex trading being available to small investors/individuals. It constitutes around 5.5% of the entire forex market activity while the rest are large investors and institutions.

Up until a decade ago, it was only accessible to large financial institutions. But with the recent advances in internet penetration, low transaction costs, high liquidity and an increased attention from market participants, it has really opened up to individuals/small investors where they can access the global currency markets and speculate on the currency movements just by opening a brokerage account with a forex broker.

How popular it is in nigeria?

According to some estimates, retail forex trading in nigeria has around 300-450 million naira ($10-$15m) daily trading volume. It has started gaining popularity among investors recently as many foreign brokerage firms have set their shops in nigeria.

Many local investor groups like: online forex traders association of nigeria (OFTAN) are working on educating students, newbies, budding investors for getting into forex and also building investor confidence in forex by trying to regulate forex brokerages in nigeria in the past.

Moreover, government agencies like central bank of nigeria and securities exchange commission of nigeria are working to establish a regulatory framework in the forex market. This framework is currently in the drafting stage as per their latest announcement.

What should you take into account before investing in forex market?

It is of paramount importance to choose a trustworthy forex broker in nigeria, if you are looking to invest your money into the currency market. The nigerian forex environment is not illegal but yet unregulated hence it only makes sense to be extra-cautious when you are putting your money into someone else’s hands.

Start by checking whether the broker is regulated by global reputed foreign regulatory agencies. If your broker has no presence outside nigeria, we suggest staying away from them.

Once you have narrowed down your choices, it’s important that you get a feel for the trading platform. Most brokers offer a free ‘demo trading platform’ where you can just trade with virtual money without downsides. Once you like the platform and you feel confident, you may subscribe to ‘live trading platform’ where you put your own money to trade.

Then it helps if you can check the historical spreads offered by different brokers. Spread is the commission you pay to the broker each time you trade. Prefer the broker who offers the lowest spreads. Also, ensure that the broker has an exceptional customer support. Do not settle for anything less. There is no reason a broker should make you wait if you want to cash-out your account.

Last but the most important, keep learning. Build your knowledge on the macroeconomic indicators and how the market reacts to it. Invest only the amount you are ready to lose. Try to minimise the losses by setting up tight stop loss. Let go of the greed and you should do good.

Common scams:

Nigeria has seen a lot of investment scams recently which is mostly due to lack of understanding of financial markets & investing among common nigerians. Moreover, there is also lure of get rich quick schemes that has made many to lose their money on fake investment schemes in the name of forex, crytocurrency & stocks.

But when it comes to retail forex, investors/traders must be beware of the investment schemes or unregulated brokerages which make claims to triple or quadruple your money in a short span of time say 6 months. This is simply rare, if not impossible for it to happen. Often, these brokers lose the money and you can go nowhere as it is unregulated in nigeria.

Also, make sure to watch-out for bucket shops. These are unregulated brokers that make trades on your behalf, promises a certain price. But they wait until the price changes, keeping the difference in their pockets.

Its important that you educate yourself about forex market and how it works before making any investment and remember to only trade/invest with regulated forex brokers operating in nigeria.

You can avoid getting trapped into all scams by following this simple mantra:

“do not listen to anyone that says they can bring massive amounts of money regardless of their experience. And seek only the globally reputed brokerages that are well-regulated, which are transparent.”

What are the risks?

It is necessary to fully understand the risks involved here.

Forex trading is highly volatile in nature. The constantly changing macroeconomic indicators can lead to rapid fluctuations of the currency movements which can be disastrous if you find yourself at the wrong end in the trade. Even the seasoned traders take losses due to the amount of randomness the market presents. Hence it is important to arm yourself with knowledge before you even think about investing in forex markets.

Forex brokers offer “leverage” which essentially means borrowing money from your broker to take a bigger position. For example, a leverage of 1:100 means, you invest in only 1 unit but control 100 units in a trade. While leverage can bring in huge profits, it can also magnify the loss you take and thereby the potential to wipe out your trading account quickly.

Forex trading is still unregulated in nigeria but it is not illegal. It means until these regulations come, if your broker goes bankrupt or refuse to pay you, nobody can help you. If you still decide to trade, choose a reputed broker which has a global presence and are regulated by prestigious foreign financial institutions. Be cautious of brokers that promise to bring massive profits. Always check the reputation of the broker before putting your money.