Bitcoin may be all the rage, but the unpredictable nature of cryptocurrencies makes it an incredibly risky gamble … especially so when the cost to get into the game is so high.
But there is a low-cost way to make a foray into the trading markets that is more stable and can offer solid returns for a minor investment.
It’s called foreign exchange trading, or forex trading for short, and basically means trading on worldwide currency markets.
Forex markets exchange around AUD$6 trillion each day, with one currency swapped for another by traders. A forex deal can be as simple as a currency exchange at a bank or foreign exchange teller.
To trade in currency markets, you first need to select a forex broker, a trading platform to suit your needs, and the currency pairing with which you want to trade.
Say you choose to pair Australian dollars (AUD) with US dollars (USD). The rate display indicates the number of Australian dollars one US dollar can purchase. Traders then purchase USD and if the value of that currency rises against the AUD they make a profit after closing the order. If the Australia dollar rises in the same transaction they will lose money.
The amount needed to begin forex trading can start from as little as AUD$100.
The three elements you need to commence trading are:
- a forex broker
- a forex trading platform
- a solid forex trading strategy.
Compare Forex Brokers is the number one online destination for all your forex broker questions. With years of experience in the finance and digital marketing industry, specifically in the area of comparison websites, Compare Forex Brokers is the leading comparison website for the forex market.
Understanding forex trading is rewarding, but there may be a bit of a learning curve. Terms such as pips, spreads, stop losses and slippage all sound daunting and require a bit of research, but Compare Forex Brokers is there to provide you with all the important facts you need, so you can easily select a broker, and learn all the necessary definitions.
After much research, testing and refining, Compare Forex Brokers’ comparison tables have been created to simplify the process of forex trading, so you can make money sooner.
Compare Forex Brokers’ number one goal is to make choosing a forex broker easy. No jargon, no nonsense and no wasting your time sifting through the information overloads that you’ll find on most forex broker websites.
Compare Forex Brokers’ aim is to find the best forex broker for your needs and answer all your currency trading questions – just visit www.compareforexbrokers.com.au
All content on the YourLifeChoices' website is of a general nature and has been prepared without taking into account your objectives, financial situation or needs. It has been prepared with due care, but no guarantees are provided for ongoing accuracy or relevance. Before making a decision based on this information, you should consider its appropriateness with regard to your circumstances. You should seek professional advice from a financial planner, lawyer or tax agent in relation to any aspects that affect your financial and legal circumstances. Financial comments provided by readers cannot be relied on as professional advice, but as general comments only.
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