Welcome back to Money Beng, to be the subject of our article today is Forex, a topic much discussed especially in recent years by web users, now we will take stock trying to understand what it is.
Many think that thanks to forex it is possible to lead a life without working and making money from behind a personal computer, but is it really that easy to make money with forex? Let’s see together what it is!
First of all, forex derives from English (Foreign Exchange) and means foreign exchange. Therefore this term indicates the currency exchange.
Forex what it is
Forex also called fx is therefore an immense monetary currency market active 5 days a week and 24 hours a day thanks to an interconnected international banking network that allows you to exchange currencies at any time and respond to the needs of all economic operators. connected.
Tens of billions of dollars are traded every day in forex or in this large market.
Forex is also present in everyday life, think about when you take a trip where the local currency is different and you need to pay for goods and services, the first thing you do in this case is to go and change the currency. own money with local ones.
Very often when we talk about forex this word is combined with trading mistakenly becoming almost a synonym.
In reality they are two very distinct things that however have a connection between them, in fact for trading we refer to the action of investing in stocks, indices, shares or currencies, while for forex, as widely said, we refer to the market of currency pairs.
At this point it is clear that when we hear forex trading, in reality it is nothing more than trading on currency pairs.
Forex trading how to start investing
Investing in forex is nowadays accessible to everyone and even to newbies, in fact you only need a computer or even just a smartphone and an internet connection.
To access this immense currency market, brokers have made online platforms or trading platforms available.
It is possible to access these platforms simply by registering and logging in with username and password.
Once you have access to these applications you will have a range of options to invest, in fact you can trade on dozens of currencies in circulation and best known.
At this point we must tell you to be careful with this type of investment, also because currency pairs have the characteristic of being very volatile and you run the risk of losing the capital invested, if you can’t afford to invest, don’t start.
The best platforms for trading forex
We have already talked in several articles about which are the best platforms for forex trading, but for convenience we tell you another time.
We personally have experienced the CFD service, application with which we found ourselves very well, not only because it is intuitive and easy to use, but also because it is full of essential functions for trading, such as graphics and so on, moreover it is a serious and reliable broker. Plus500CY Ltd is authorized & regulated by CySEC and currently registered by Consob in Italy.
On the other hand, there is also eToro, a broker also recognized by the Cypriot authority and by the Italian institution for the protection of financial markets.
Copy trading consists in replicating the financial operations of professional traders, thus obtaining a profit with a few clicks, from home and possibly while you sleep.
Here, too, copy trading is not risk-free, because even the best can make mistakes!
Furthermore, we always remember that the financial markets are unpredictable and it is very difficult to always be able to make a profit in this type of operation.
Other platforms recognized by the authorities and apparently serious are, FX Markets, Markets, Degiro, there are many others in circulation but always make sure that these are recognized by the appropriate authorities before entrusting your capital to unknown brokers.
Forex trading, how to get started
As we have mentioned, this world is not risk-free, and copy trading is not the solution to start with even if it represents a way to learn how it works.
We personally believe that to start working with forex you need study and a great desire to learn, furthermore brokers allow novice traders to practice with a demo account.
The demo account therefore allows you to train in online trading and to approach this world for the first time in total safety and without losing money and capital.
Once you have acquired enough familiarity with the application it will be possible to switch to a real account and invest real money.
You may also be interested in: How to Invest Money
Is it possible to live with forex?
Finally, we conclude our article with one of the questions that many young people interested in easy money ask us every day.
To this question we answer that it is not possible if you don’t want to learn and study.
Let’s say that a degree in economics and a master’s degree in the financial sector could greatly facilitate your access to this world with great earning potential.
But like everything, if there is no training it is very difficult to achieve a goal.
Many also ask us if there are people who have made it and who live on forex trading.
The answer is yes, you just need to go to the various forums that revolve around the web to talk to professional traders who confront each other every day to improve their skills.
Thanks for being with us, this short guide to the online forex world ends here, if you have found it interesting, share it with your friends via the social buttons found below.
Money Beng, The Editor
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