Forex is an acronym of Foreign Exchange, and Forex Trading is the global business of trading of currencies from various countries against each other. The foreign exchange market also known as FX, currency market or Forex. All of the larger international banks are major participants in forex trading.
Typically forex trading is performed by the brokers, in this business you have right to choose the currency pair that you expect to change in the value and trade accordingly. As a forex trader, you have to place an order through broker then the broker passes the order to their partner in the Interbank Market and fills your place. In case, you close the trade the broker closes your position with the loss or profit during the trade.
Why do you have a forex trading business?
No matter what is your actual business you can do it from home as part-time, if you know how to do business and survive in the market, you can do forex trading. It requires practice and knowledge of different markets you want to work with.
A 24-hour market
As a forex trader, you can choose your own hours to work from the morning in Australia till the night in the United States. The Forex market never sleeps, so you can join forex trading as a part-time business, but you must have some amount to invest. You can find your peak hours to do forex trade according to your regional time.
Low transaction costs
The physical forex markets require large amounts to invest to survive in the market, on the other hand, online forex trading doesn’t require anything like this. You can make transaction cost under 0.1% under standard market circumstances, and the larger markets can bid as low as 0.07%, so it depends on your investment in this market.
As a forex trader, you don’t need to bear expenses like brokerage fees, exchange fees or government
fees. Most of the retail brokers compensate for their services, so they don’t require you the commission.
Just like other businesses forex trading also has scammers who are just like a black sheep in this field.
While doing forex trading, you need to avoid them, following tips helps you to avoid from forex scam or fraud.
Google the product and research for it: If you see a new product that offers high-profit, search about it in Google, for example: write “product name scam” if the results yield with too many results don’t go with it.
If it looks too good: Websites that offers high-profit, keep in mind there’s no easy money in this market.
Scamming websites usually have one page with big/blinking $ sign and serious explanations.
Demo account: As a beginner you need to care for the demo accounts. You must ask from the people who have experienced the field to start a demo account.
Check the people on LinkedIn: LinkedIn is the world’s largest professional network with a wide audience. People who looks new to the forex and from whom you might have scam risk then they can be searched out on LinkedIn. By checking their linked profiles you will know that whether they are trusted or not.