Are you looking for a promising investment opportunity? Would you like to outperform the S&P 500? If so, forex trading may be exactly what you’ve been looking for. Forex (foreign exchange market) trading has undeniably become one of the highest trading markets in the world, doing over $6.6 trillion in daily trading volume.
And at CWS Capital, we want to help you take advantage of this fact. However, you may be curious as to why you should consider investing in forex. Fair enough, after all, it’s your hard-earned money we’re talking about here.
You want to ensure your investment is well protected. Keep reading to learn about 6 reasons you should invest in the foreign exchange market.
1. Getting Started
Similar to stocks, savings, or other investment accounts, you can get started by signing up online. But when it comes to forex investing, it’s not exactly as easy as just creating an account.
Depending on where you live, there may be barriers to overcome and stipulations that must be met before you can begin investing.
But assuming you’re able to surmount those initial hurdles, you’ll need proof of identification, an internet connection, as well as a suitable online forex broker. From there, you have to open and fund a trading account and obtain a forex trading platform that your broker supports.
2. High Market Liquidity
Known as the biggest and most liquid market in the world, the forex market offers ease of use when it comes to buying and selling. Moreover, these transactions can be made at a relatively low cost. What does this entail? Simply put: it means you can take your money out just as easily as you put it in.
Additionally, it also entails that you can go in on a trade with a low risk of the price altering or changing too drastically prior to executing your trade.
3. Brokers Offer Informative Resources
No matter what you’re investing in, if you’re new, the whole concept can seem quite intimidating. However, try not to stress too much. There are plenty of brokers who offer their traders the educational and informational resources they need to learn how to navigate through this terrain. When you begin working with the app, guides and descriptions will explain the meanings of features.
This means that you won’t have to concern yourself with trying to understand all the details quickly. Furthermore, some of these brokerage accounts provide free videos, blogs, and teaching materials on how to study and implement trades.
For the novice trader, this is yet another compelling reason to begin using forex.
4. You Can Become Quite Profitable
First and foremost, it’s important to understand that trading doesn’t come without its risks. The possibility of losing money in a trade is there. However, the opportunities are also there for making a handsome profit. If you do your research and closely monitor the markets, the probability of making a profit on each trade is most certainly there.
Many forex traders – through study, learning, and practice – can make incredible profits. However, it does require a tremendous commitment of time and energy to learn. In fact, roughly 70 to 90% of traders are not profitable for this very reason.
5. It’s Virtually Always Accessible
The forex market’s availability is easily one of its most prominent features. With 24/7 trading for nearly 6 days each week, this is a platform that is almost always active. And this is because all the time zones share a single market. An open market Monday morning signifies trading to begin. And it continues until Friday night all the way in the western hemisphere.
All of this is to say that the forex marketplace is very flexible. Whether you want to trade in the mornings or evenings, the option is available to you. Such a condition isn’t plausible when using the stock market, which is limited to business hours Monday through Friday.
6. It’s Easy to Locate Reliable Brokers
You will require a broker when trading forex. As such, these brokers house your money and then implement trades for you when requested. The good news? All of the brokers in question are regulated financially. This entails that your money is safe, secure, and being handled legally.
For this reason, locating a trusted broker is actually quite a simple process. Just search for their certification and information regarding their financial regulation. This data is to be displayed on their website.
If you’re just beginning your investing journey, investing in forex is a great way to get started. It’s easy to use, provides helpful resources, and offers a great deal of flexibility in addition to an enormous market. This makes forex investing a wise choice to learn the ropes and gain some financial confidence when it comes to investing!
At CWS Capital, we have nearly a decade of experience delivering results for our clients. Registered with the Better Business Bureau to demonstrate our dedication to best business practices, we operate from the values of transparency and integrity.