Living has become more expensive. According to this report by CNBC, home prices, for example, have increased over a hundred percent since 1960. This will continue to be so. Unfortunately, as living expenses increase, wages have not correspondingly increased. As a result, most people are still living behind in time.
To solve that, you must think of novel ways to generate income. Multiple means of earning are not becoming just desirable; rather, they are becoming a must. The good news is that this challenge confronting virtually every working person has a Forex solution.
Forex can give you financial liberation if you do it right. Here are its characteristics that can help you to make your dream of financial independence become a reality. Read on!
- The Forex market is the largest financial market in the world
The Forex market is the largest of its kind. Approximately $5 trillion worth of daily transactions are conducted in it. The stock market clears far less within the same period. Hence, the market size of the Forex market is just enormous! And with this vast size comes many money-making opportunities.
Interestingly, despite its size and the many opportunities it holds, the Forex market is also still less prone to manipulation. As a result, external manipulation is almost non-existent, thereby conferring a measure of security. In the Forex market, what you see is what you get. The prices are fair, and the operations are decentralised, with the most substantial bulk of the transactions being done online.
- The Forex market makes a viable alternative source of income
The modern age is plagued with a myriad of challenges. Job insecurity is on the rise, many traditional careers are going extinct, and now, it is more expensive than ever to live. If you are dependent on a job, losing it can wreck you. Hence, a single source of income does not just cut it anymore.
Moreover, many jobs today are dead-end channels. They take most of your time, yet give fewer gains, in financial rewards and personal fulfilment, in return. Instead, many fuel the crazy rat race, leaving you disillusioned in the long run. Forex trading, on the other hand, offers you a relaxed and satisfying way of making your money.
And even if you cannot do Forex full-time, it won’t hurt your mental health or your account if you make it a supplementary way to earn.
- Forex is an excellent way to diversify
If you are already an investor, with stocks, mutual funds, and allied financial instruments constituting the totality of your portfolio, Forex can be an excellent way to further diversify your portfolio. And the importance of diversification cannot be overemphasised.
A mainly-stock portfolio will take a deep plunge in events of stock market crash. In fact, some market crashes can be disastrous enough to erode most of your holdings. However, investing in Forex can help you offset the risks of a stock-concentrated portfolio. And it might even be exciting to know that investing in Forex can easily outperform every other type of investment.
For instance, in 2003, while Warren Buffett’s company, Berkshire Hathaway, made a pretax gain of $825 million in Forex, it made a pretax gain of only $448 million in stocks. Therefore, the Forex market can help you earn more while also allowing the diversification of your investments.
- The Forex market has low barriers to entry
Arguably, Forex is the cheapest of the financial instruments to trade. It requires so little to start participating in the Forex market that virtually anyone can get started in it. In Forex, even before you put any money on the line, you can first practice demo trading, which requires no sacrifice from you other than your time.
To trade forex, all you need is a device on which to install the trading platform of your broker, internet connection, and a few bucks deposited with your broker. And here is a stage at which it gets fascinating. Most think that this amount to be deposited with brokers has to run into several thousands, but that is wrong.
Instead, however, it can take as little as $100 to deposit in trading capital. There are brokers that even have as low as $10 minimum deposit requirement! While starting with so low is not advised, the picture is that to start Forex is easy and fast! And you do not have to be rich before you can.
- The Forex market is open 24 hours every day
The Forex market is open for 24 hours every day. In contrast, the stock market has defined trading hours every day. Once those hours are over, the market closes and you won’t be able to earn! The Forex market, on the other hand, enables you to indeed have your financial destiny in your hands by providing multiple opportunities all through the day.
Another refreshing detail to note about the Forex market is that except for weekends, it is also open all week long. In fact, it closes late on Friday and by the end of Sunday, it is already up and running again. Thus, if you desire real and consistent action, there is no financial market to be other than the Forex market.
- Investing in the Forex market attracts lesser fees
Whenever you are buying anything, you often have to pay different parties some commissions. This fact holds good on stock trades and in real estate transactions. However, for Forex, the contrary is the case! Forex transactions do not require you to pay commissions.
Instead, your broker makes its gain through the difference between the bid and the ask prices it displays for each currency pair. Although there are brokers that charge their clients commissions on each trade, those brokers are the exception and not the norm.
Moreover, Forex traders also enjoy better tax benefits compared to transactions in other financial markets.
There you go! Those are the benefits you will be enjoying once you decided to start trading Forex. However, to boost your chances of succeeding in this dynamic and highly competitive financial market, you might want to consider subscribing to a trusted forex signal service.
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