Forex trading is one of the most popular ways of earning on the Internet today, and it’s not surprising that the foreign exchange market offers great opportunities for making money. The Forex industry is constantly evolving, new services are emerging as well.
Profit on Forex is formed by the difference and change in exchange rates. Traders can earn not only on the growth of the exchange rate but also on its fall. Availability is one of the main features of the market: everyone can trade in the foreign exchange market, and to increase profits, you can use different ways.
Key benefits of trading on Forex:
• Leverage. If you make a deposit of $100, you will be able to trade $10,000. This instrument allows traders to enter the market with a small initial capital.
• Minimum deposit. Forex has a low entry threshold. Some brokers allow opening mini accounts only with 10 dollars. For example, Mini account from JustForex has no requirements on the minimum deposit. It is an accessible amount to start trading and understand the basics of the foreign exchange market.
• Availability. Forex works 24/5 around-the-clock, so you have a choice whether to be a part-time or full-time trader and how much time to devote to trading. Besides, if you have a main job, you can easily combine it with Forex.
There are a lot of ways to earn money on Forex. These are independent trading, copy trading, automated trading or affiliate programs. Let’s consider the features of each of these methods.
Independent trading is the traditional method of earning in the foreign exchange market. It requires effort, time, and knowledge. On Forex, all traders have equal chances of making a profit; however, a successful trader is one who improves his skills, opens well-thought-out trades, as well as makes right decisions based on logic rather than emotions.
To start trading, you should choose a broker, open a trading account, and make a deposit. You can open Forex accounts of different types. However, for those who want to start real trading with minimal spendings there are cent accounts, or you can first hone your skills on a Demo account.
Copy trading is often used by novice traders, who so far lack the experience to create their own profitable Forex trading strategy. There is plenty of automated services that allow copying orders by successful traders and not go into the details of trading.
Subscribing to the signals of a provider does not take a lot of time. After you subscribe, the signals will be automatically copied to your account and you will not need to participate in trading. The main thing is to choose an experienced signals provider.
You also have the opportunity to automate trading and not spend time and effort on independent trading. Today, there are many advisors which trade according to a certain algorithm and trade for you. This allows traders to earn without deep knowledge.
There are different principles of automated trading systems: some are based on such strategies as Martingale, others use the intersection of moving averages or trading on the breakdown. To start using an advisor, you should insert an advisor on the price chart in MT4. The EA will do the rest for you: place the stop loss and take profit levels, open and close transactions.
Expert advisors are devoid of the human factor, they can’t make a mistake under the influence of various emotions. However, any robots have their drawbacks: they follow only one specific strategy, tend to become obsolete.
Alternative ways to make money on Forex
In addition to earnings related directly to trading, there are alternative ways of earnings on Forex. Many have chosen affiliate programs as a source of income. Forex affiliate programs are a form of cooperation between a Forex broker and an affiliate. The purpose of affiliate programs is to attract active clients to a company.
Forex affiliate programs are the best way to make money on Forex without investing for owners of Internet resources - financial blogs, websites. They attract clients to a company through their resources and receive a fee according to a certain scheme. Partner's profit depends on the activity of attracted clients. The more lots the referrals trade, the higher the income.
Forex earnings are open not only for experienced traders, but also for beginners, and even for those who aren’t involved in currency trading.