Investing is a growing trend both in Canada and globally. While the stock market has been the traditional place for trading historically, today there are a variety of options available. Here, we dive into the world of forex trading to find out more about the trend.
Forex is short for foreign exchange and is based on the buying and selling of two different currencies. By taking advantage of the fluctuations in the currency market, you can earn a profit from trading.
There’s a growing number of forex traders all over the world. Getting started is relatively easy and with enough research you can increase your chances of making money.
Increasingly popular trend
Forex trading is more popular now than ever, as more and more people become interested in making a profit from this type of investing. As Forex trading in Canada is on the rise, there are an increasing number of brokers and forex trading platforms to choose from.
Canada offers a secure trading environment. All FX brokers must be authorised by the Investment Industry Regulatory Organization of Canada, IIROC. With a good strategy, research, trading plan and a trusted online forex platform, you increase your chances of being successful.
Choose a forex trading platform
Forex, or FX, is based on the global currency markets and how the prices there change. In order to trade, you need an account on a forex platform. You should pick a platform which you find easy to use, and where the broker has a good reputation. There are both web platforms for your laptop and PC, and mobile phone apps on which you can trade with forex.
How FX trading works
Similar to currency exchange kiosks found in international airports, with forex trading you swap one type of currency for another. You buy and sell in pairs, for example Canadian dollar, CAD, to U.S dollar, USD.
Benefits of forex trading
Why are so many people investing in the foreign exchange market? Compared to the traditional stock market, FX offers several benefits. Here are some of the pros of FX trading:
- Markets are open almost 24/7.
- You can make a profit no matter if the market goes up or down, as long as your prediction is right.
- The world’s largest financial market, meaning it’s a global marketplace with plenty of opportunity to make money.
- High volatility means high risk, but also the possibility to make big profits.
- Accessible and doesn’t require a large investment to start with. You can also try out trading with a demo account before using real money.
Should I start forex trading?
Trading on the foreign exchange markets does come with a risk, as with all types of trading. It requires you to do your research, stay cool-headed, and adopt a long-term strategy if you want to earn a profit. If you do that, forex trading can be very rewarding as you become more experienced and learn how to use correct timing for buying and selling as the global market fluctuates.