If you’ve done enough browsing around on the internet, you’ve probably come across a few ads that offer you the chance to make massive amounts of money on the forex market working no more than a handful of hours per day.
While many of these exaggerated claims are made by people who are just out there to get your money, forex is a very real and legitimate career path, provided you aren’t doing it through some shady character on the internet.
It’s emerged as a popular way to earn an income thanks to the flexible schedule, high liquidity, and accessibility of the forex market. After all, everyone would love to work for themselves from home and make a killing doing it.
That said, forex trading does have its own pros and cons depending on who you are and how you approach it. In order to decide whether this career path is for you, let’s take a look at these pros and cons.
Pro: Accessible to Various People
Forex trading is very accommodating in the sense that the market runs all day, enabling you to make trades at your own convenience. Depending on when you choose to trade, you can adopt different strategies. For example, trading Australian Dollars outside of Australian business hours allows you to benefit from low-risk trades.
Con: High Volatility
While the above point would suggest that trading strategically allows you to benefit from lower risk trades, the world market you’re working on is still prone to geopolitical and macroeconomic changes that are out of our control. When things go wrong, there’s little more you can do than watch. Of course, being careful with your moves does help.
Pro: Comparatively Lower Costs
Compared to most other trading methods, forex is significantly less costly. This is mainly because there aren’t really commissions. Most brokers make their profits from the spreads between currencies instead of at your expense. Therefore, you can benefit from not having to worry about exuberant brokerage charges.
We as humans have an astounding capacity for learning, but fully grasping a concept as broad as forex takes time. Global economics and politics are something that you have to understand and constantly keep an eye on in order to succeed in forex. But as we touched on above, having an interest in this can help you go much further than those who don’t.
Pro: Helpful Platforms
Modern forex trading platforms offer a wide variety of tools that make it easier for beginners to get a grasp of what’s going on. They also usually feature demo accounts for you to practice on, cost-free. Check out InvestinGoal.com for a list of the best forex brokers on the market today, as well as a wide variety of information on forex and trading in general.
What one would see as a pro or con largely depends on who you are. If you’re motivated, passionate, a risk-taker, and have a natural affinity for working with money, you can build a successful career for yourself in forex. It all depends on your approach. Give forex a shot with a demo account and see how you feel about it.