If you’ve got expendable income and are interested in turning a profit, there are plenty of investment and trading platforms to consider. People commonly invest in construction, property, shares and web development among other things, but one means of generating income has steadily been on the rise over the past few years: Forex.

What is Forex?

Foreign currency exchange, or Forex for short, is a lucrative means of investing which involves taking advantage of the fluctuations between the strengths of competing currencies in order to make money. In comparison to other popular investment industries, Forex is relatively new. One unique feature the Forex market has is the ability for an investor to make money regardless of what state the economy is in. For example, in more common investment and trading platforms, traders typically wait for the markets to start trending upwards before entering a trade. With Forex, the markets can go up and down multiple times in a single day, and a trader with a keen eye for the market can generate vast profits. Before getting involved in Forex, it’s important to understand that learning background information and strategies pertaining to the market is key to becoming a successful Forex trader.

How much capital is needed to begin Forex trading?

Realistically, budding Forex investors only need a small amount of funds to get started, although as you might expect, a larger investment will yield larger returns. The Forex market never closes so investors are free to enter and exit trades as and when they like, making it a fantastic way to generate income during spare time.

Good reasons to trade Forex

Besides the potential opportunity to make relatively large sums of money for comparatively little effort, there are plenty of reasons to consider Forex as an investment:

Transparent markets

Any investment opportunity which allows you to manage risk and place orders in seconds is worth getting involved with. It’s fast, efficient, and the fact that the markets are completely transparent means you can avoid any unwanted surprises.

Low cost of transactions

When you’re starting out, mistakes won’t cost you the world. A good quality broker won’t charge commission in order to maintain an account, and you might not even pay commission on trades when you initially trading in small amounts.

Predictable outcomes

Prices often reoccur in cycles, so once you’re familiar with the trends you can expect to see some decent returns. A bit of technical analysis of the markets will help you to spot trends and ultimately make money from them.

Condensed focus

The majority of Forex transactions focus on seven main currencies this makes the markets much easier to keep track of the FTSE 100 for example. The US stock market has over 40,000 stock options and learning markets of this size takes time. A small number of instruments makes it a lot easier to study and predict, making Forex the ideal choice for investing for those who are short on time.