Can Forex Become a Main Source of Income?

Can Forex Become a Main Source of Income?

by May 27, 2019

Trading seems to be a very attractive way of earning: you can trade from any place, have a flexible schedule, and earn stable income as well. On the other hand, trading is associated with high risks.

What is Forex

Forex (stands for foreign exchange market) is an international over-the-counter market. Due to the high liquidity and volatility, trading in the foreign exchange market has become an additional source of income. Daily turnover in the Forex market exceeds all the world’s financial markets.
Currency is the main commodity traded in the Forex market.US dollar, Euro, Japanese yen, British pound are in the top among the most-traded currencies. The currency pairs including these currencies form the most part of transactions in the Forex market.

Types of earnings on Forex

In the financial markets, there are a lot of opportunities for making money. Among them are options for earning income without investing your own money and others, which will be discussed below.



Independent trading

A trader buys the currency cheaper and sells it at a higher price and vice versa. The difference between buying and selling prices makes a profit of the trader. To start trading, you need to choose a reliable broker,open a trading account and make a deposit. If you are a beginner, first practice on a demo account – currency trading simulator. The principle of trading is the same as the real one but is conducted on virtual funds.

To start trading on Forex you also need to:

  • Get a Forex education;
  • Deal with risk and money management;
  • Develop your own trading strategy;
  • Learn to control emotions during trading;
  • Constantly analyze trades.

Automated trading

An expert advisor is a program written to automate and simplify trading. You can often find such names as trading robots, experts or EAs. All these terms are united by automated trading. Such a robot is run up in the trading terminal and can trade for you in automatic mode according to the certain algorithm.

The main difficulty is to find or write a trading robot that will actually make a profit and not lose your deposit. So, before start using the robot in real trading, it should be tested on a demo account or a special tester.

Copy trading

Copy trading is suitable for beginners who do not want to spend their own time studying specialized literature and analyzing the market.

The mechanism of copy trading is quite simple. The investor connects to the service, selects the signals provider and copy his orders. You do not participate in the trading process, but you keep the full control over your account and will be able to turn off the copying of orders at any time.

Alternative Way of Earning on Forex

Forex market gives the opportunity to earn not only for traders but also for those who do not trade on their own. It’s about partner programs. Introducing broker is a very attractive affiliate program. You do not invest money, do not trade, but at the same time earn income. All depends on your activity and effort. The affiliate attracts active clients via own sites, social networks and receives the profit every time the attracted client makes a trade.

In addition to the IB program, there are also other forms of cooperation:

  • Regional Representative– an opportunity to work under the company’s brand.
  • White Label–a type of partnership for financial organizations who want to provide brokerage services under their own brand.
  • Payment agent– suitable for owners of online exchange services.

What way to choose depends on you. If you want to earn and are willing to learn, independent trading is for you. If you’re going to earn income and not be involved in trading, consider affiliate programs.

 

Featured image credit: Unsplash

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  1. farhad
    #1 farhad 22 June, 2019, 09:10

    Yes, It’s can be your main income. I’ve been in forex field for 3 years and automate it all with forex robot called dragon expert. I make about $8700 this month. Cheers

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