Until the early 2000’s, it was not possible to trade forex markets with anything less than $10,000. Unlike other financial markets you can trade with much smaller amounts such as $100. More and more players are entering the forex market, allowing you to leverage your capital and make money from fluctuations in the forex market.
You can literally trade forex markets while sipping on a cool drink and lying in a hammock. All you need to get started is some capital to trade with, a computer, laptop or smartphone and an internet connection. You decide when you want to trade and therefore your working hours.
Even during a financial crisis, you can still make money trading forex markets. Any oscillation in the currency can be taken advantage of by going long or going short. Whether a market is bullish or bearish, you can trade either way with forex unlike stocks or other financial instruments.
You can watch what professional traders are doing and observe their trades with social trading. Social trading lets you copy other trader’s strategies and can be very beneficial to newcomers, shortening the learning curve. In the past, traders relied on fundamental and technical analysis, but with social trading, you can take cues from successful traders to make money on forex.
The forex market is quite straightforward as compared to other financial markets. With stocks, you have to analyse company reports and choose from thousands of companies to invest in. However, forex markets generally revolve around eight currencies, known as the Majors. Put simply, the better a country’s economy is doing, the better we expect their currency to perform.