The foreign exchange market, also known as the Foreign Exchange and theForex is not just the fastest growing financial market. It is also, without doubt, one of the most fascinating. Since 2002, the daily trading volume increased from $ 1.7 trillion to $ 3.98 trillion, or $ 3,980 billion per day. By comparison, the volume of transactions daily on the New York Stock Exchange, the world’s largest stock exchange, was 153 billion in 2008, which represents only 1/26th of Forex volume.
Several factors are contributing to the growing popularity of currency trading:
- Internet. It is no coincidence that currency trading has increased exponentially over the past decade. Thanks to the generalization of broadband connections, consumers can now use online trading platforms previously reserved for professional traders, who accessed it from the trading rooms.
- An increased willingness to take risks. New generation traders are willing to take risks if it allows them to win larger amounts of money, with a faster return on investment.
- Low start-up costs. Forex trading is open to everyone, even for those who only have a few hundred euros. On the other hand, good courage to open a capital account with only 100 euros!
- Low operating costs. Trading currencies is much less expensive than trading stocks. Brokers and trading platforms do not take any commission and are only remunerated on the spread, making the Forex particularly interesting for small traders.
- Immediate satisfaction. “Right away” is the new magic word in the world of trading, like everywhere else. Forex is open 24 hours a day, 24, five days a week, and is, therefore, better able to meet the needs of the generation of “Everything, immediately! We can no longer depend on opening hours stock markets or wait for investment opportunities that do not arise
only once or twice a month.
However, it’s not an easy- get-rich scheme.
Therefore, you must become aware of this essential truth: trading on Forex is not a good way to get rich quickly and easily. When you start trading in the forex market, you are bound to make mistakes. You take too many risks. You forget to set up a stop loss, or Forex calculator, you manage your budget badly, you don’t have an exit strategy, etc. Beginners all make errors. This is normal. The whole question is how many mistakes you will make, how much money they will cost you, and what lessons you will learn from these mistakes.
Popularity attracted a lot of scammers- beware of them
With its popularity and lucrative came the plague of scammers who want to sell you the miracle formula to win the market. These also could be bogus websites with untransparent information and flashy designs claiming to operate the brokerage business. That’s why you have to learn to spot them, not to fall for phishing emails and cold callings. And finally, always look for the licensed broker who will be your shield from suspicious entities looming on the market these days.