There are so many things people are confused about when we are talking about Forex. While everyone seems to know a bit, if you asked them how it functions – they probably wouldn’t know the right answer. If you want to start trading Forex, the best thing you can do for yourself is to research online using the right resources and sometimes ignore what everyone around you says about Forex. Why? Because they caught bits of information here and there and usually think that’s enough. Forex trading requires constant learning, knowing where to look for, and being ready to start slowly. Here are the most asked beginner questions, and we’ll answer them, so you don’t have to look up tens of pages online.
What is Forex?
Forex is an online trading market that operates 24/7, excluding weekends. Forex is short for “foreign exchange”, and it revolutionized trading since it’s not only for the rich anymore. It’s available all across the globe if you have a smart device and internet connection. Suppose you want to open a trading account. In that case, you need a third-party (a broker), and nowadays, you can open it with as low as 150 dollars (it varies from company to company, but for a beginner’s account, it goes around that number.). Forex is decentralized, meaning no outside authority controls it, giving it even more freedom and transparency. Foreign Exchange is safe as long as you know where to look for non-scam brokers and companies to work with (we’ll speak more about it below).
How do I avoid scams?
You will hear from many people that Forex is a scam and that it’s not worth the effort. Since 2020, this statement began to change a bit since people started researching various ways to invest and have another income source. It seems the masses began to take Forex trading more seriously, but there’s still a stigma around it. Scams are present everywhere, but Forex is a fragile spot for beginners who don’t want to bother much and think it’s a fast way to earn money. In 2017, when Bitcoin hit its cap (that was much lower than it is now), people began investing in Bitcoin even though they knew nothing about it. Some got scammed, some got disappointed because it crashed very quickly, and they didn’t expect the market could be so volatile. Selecting the right Forex broker is the best prevention to being scammed, and it’s not hard to find them. Broker reviews are great because they can give you a better insight into which platform they offer, what’s their forte, and see their portfolio. Comments from various clients are also important, so don’t forget to check them out as well! Certified and licensed Forex brokers usually have around two or three platforms where you can reach them, and they are updating them regularly. There are also websites acting as regulator bodies that keep and update a list of regulated and licenced brokerages, so you can check if the company you want to contact (or it contacted you) is a scam (if they’re not on the list), or a real deal. Make sure to check that first, no matter what the person you’re speaking to tells you. No matter how good it sounds. If they’re urging you to invest everything you can right now, they’re most probably scammers because no expert would tell you something like that.
What should I invest in?
This is something you will talk to your broker about once you open a trading account. You don’t have to start trading right away, but it’s important to learn the basics so you can start when you are ready. If you are interested in a stock or crypto, discuss it with your Forex broker because you might change your mind and invest in something else depending on how much time and patience you have for trading. What’s important is to have a goal, so once you make a trading plan, you can stick by it because you know why you are investing. It will prevent rash decisions, and as we mentioned, don’t invest everything you have right away. Your broker will tell you to start small, so you can play around and see how everything functions. Even if you lose, it won’t be a big deal, and you’ll get to learn. Be patient, and don’t stop learning. Good luck!