The financial markets are now more readily accessible thanks to top brokers and online trading platforms offering their services to more users. You can virtually access any financial instrument you want to invest in using nothing but a laptop and a working internet connection.
For many home investors, the opportunity is worth taking seriously. A lot of home investors are now investing in instruments like forex and treating the experience as a business. Considering how profitable the forex market can be, you might be tempted to invest and trade fulltime too.
Before you jump to working from your home office and turning forex trading into a business, however, you still need to cover the basics. Here are the top tips and tricks you need to know to make forex trading a very profitable business.
Work with the Right Broker
When you start treating forex trading as a business, the broker you choose to engage becomes even more important. Every cost imposed by the broker – from the spread on your pair to swap and other fees – is now a business cost, so taking steps to reduce your costs is a must.
The same goes for trading platforms. You want to be able to analyse the market with the right indicators, execute orders quickly, minimise slippage, and keep your trades managed meticulously. Only a capable broker can give you these advantages. Long-running provider Easymarkets is one example, which offers benefits such as no slippage and fixed spreads.
Fortunately, you have a wealth of options to choose from. You can review fees, your broker’s platform, the available instruments, and other details related to the broker’s services – and even open a demo account – before you open a real account and start trading.
Do Your Research
The more you know about the market you are in, the better you will be at making trading decisions. You can start by limiting the number of forex pairs you trade. EURUSD and USDJPY are usually the popular ones, but other pairs like GBPUSD and USDCAD can also be very appealing considering their volatility.
Having access to the right sources of information is also very important. Sites like Bloomberg are filled with news that will help you do fundamental analysis. At the same time, your forex broker may also have its own information source embedded into the trading platform; check for a news ticker on your console.
Shape Your Business
Last, but certainly not least, don’t forget about the business side. You still have to create a brand for your forex trading business. More importantly, you have to define the business model. Are you managing funds for others? Do you want to solely use forex trading as a revenue source? Are you offering signals and trading aids?
Think about marketing the business last. Once you have the fundamentals covered, marketing the forex trading business is just about understanding the target audience and packaging your business accordingly. You will start getting clients and expanding your business sooner than you think, especially with the forex market being as lively as it is today.
So, are you ready to turn forex trading into a business? With the tips we discussed in this article, you can begin taking that first step immediately.