The Forex also is known as the foreign exchange market is a currency exchange system that moves billions every day, even more than the same New York Stock Exchange. If you think to invest in the forex market but don’t know how to Forex investment system work then you are in the right place. Forex is one of the very good places where you can make lots of money.
Before investing in Forex it is important to take advice on what the risks are since it is a highly volatile market, you can make a lot of money in a few minutes as well as you can lose all your capital in less than 5 minutes.
Forex Investment Guide For Beginners
The amount of money that moves through currency exchange (Forex) is about 5 trillion US dollars (USD) a day, this allows there to always be someone who is selling and buying, facilitating buying and selling actions at any time.
Advantages of the Forex Investment market
- A high volume of transactions
- Extreme liquidity in the market
- Large number of participants (Brokers)
- Its geographical dispersion
- Operates 24 hours a day, except on weekends
- You can trade more than 100 currencies
- To invest in Forex you need to operate through a company (broker) you trust, one of the most recognized is iForex which is a company that operates with currency exchange and also with metals and oil, that way you can participate in all those markets belonging to Forex.
How To Start With Forex
To start in the Forex investment market you need an account with a broker, suppose that from now on we will work on Forex with the iForex company.
You must open an account with them and pay USD $ 100 which will be credited to your account and will be ready to be invested as you wish.
However, and from own experience, it is recommended to take the advice of the advisors of the iForex company which will show you how to operate in the exchange market, you must also do your part and study and look for information regarding the Forex and be up to date with the markets.
Before starting to invest in the foreign exchange market, you will have the option of practicing with a test account “demo” in which you will have around $ 5,000 fictitious dollars for you to practice with the special system provided by the iForex company.
One of the healthiest and most logical tips is to sell when the currency rises and buy when the currency falls, generally the most worked currencies are the following.
EUR / USD – 24.1%
USD / JPY – 18.3%
GBP / USD – 8.8%
How can I request the money earned?
For them, you must send all the information requested by the company (ID, account number, address, etc.). For more information, you can contact your account advisor.
You must make sure that your bank accepts payments from the company in which you are participating in some cases you will need an international account number also called: SWIFT.
Is it legal to invest in the Forex market
Yes, it definitely is. However, it is important that you be aware of the laws on the payment of earnings of this nature in your country, generally the constitution of each country requires an individual and / or company to pay taxes on their earnings when they are above the minimum.
For example, in Costa Rica if you earn more than $ 13,000 a year with any activity, you must pay taxes and present invoices that prove the origin of said income, otherwise you would be going against the laws and policies of the country, exposing yourself to fines and the worst case to criminal trial for tax evasion, that is why you should consult with the competent entity in your country.
Alternatives for Forex market
There are several alternatives for the forex investment market such as investing in stocks, EFTs, or options. In the US, you can invest in NYSE or New York Stock Exchange or NASDAQ. If you are an aggressive investor, you can even invest in Asia’s stock market like in the Philippines which is projected to bounce back by the end of the year. Here’s a guide for you to choose the best stock broker Philippines.
Forex trading may be hard especially if you are a beginner however, if you study how the market moves and find your strategy, it can definitely give you a huge income.