If you Google “forex trading questions”, you’ll find many different common searches from those that are curious about the field. Today, we thought we’d provide some answers to some of the most commonly asked questions about trading.
Question #1: Can I trade forex with $10?
The short answer to this question is yes! However, there are a few things you need to know. First, you’ll have to find a broker that will allow you to open an account with this amount, but this shouldn’t be much of a problem as more and more brokers are offering entry-level accounts that don’t require a large investment. You’ll also want to have realistic expectations about how far your investment will get you. It’s true that your $10 can grow into more money, but you shouldn’t expect to become rich off of a small investment. Still, there’s nothing wrong with starting small and working your way up.
Question #2: Is it Worth Becoming a Forex Trader?
This depends on how much time and effort you’re willing to invest in trading. Those that are looking for an easy way to get rich with little effort will probably tell you that forex trading isn’t the answer. On the other hand, if you’re determined and ready to learn, trading can be a profitable and sustainable source of income that can help you today and even into retirement.
Question #3: How Much Do Forex Traders Make a Day?
The answer to this question is quite subjective. First, you have to consider the amount of money you’ve deposited, your overall experience, your strategy as in how often you trade, and so on. Someone with a small investment and little experience just isn’t likely to make as much as an experienced trader with a sizable investment. One common article found that a trader that makes 100 trades per month with an initial investment of $30,000 could make around $3,750 a month. While it would be difficult to replicate these results exactly, this can provide a general idea of how much you could make.
Question #4: Is Forex Trading Just Gambling?
Not at all. When you’re gambling, you rely on things like luck and probability and you’re likely to take big risks in order to win big. Forex trading is different because you actually enter trades based on supporting evidence. Rather than simply entering trades for no reason, you work with a detailed trading plan and use mechanisms to limit the losses you could take. You can also look at things like the news and current events to have an idea of what to expect.
Question #5: How Long Does It Take to Learn Forex?
The answer to this is subjective, as it will depend on how much time you can invest in learning per day and how fast you learn. Many traders also continue to learn lessons long after they’ve opened their trading account. If you’re eager to get started, the best thing you can do is carve out some time each day or longer blocks of time on the weekends for researching.
Question #6: How Safe is Online Forex?
This depends on the broker you’ve chosen. While there are scammers out there, there are also many reputable brokers that want to help you. Finding a trustworthy option only requires some time researching. You can start by reading over everything on their website, including their terms & conditions, checking their regulation status, and looking online for honest user reviews on other websites. If you can’t find much information about a particular broker, go with a more popular choice.
Question #7: Does Forex Trading Have a Monthly Fee?
This question likely stems from the inactivity fees that are charged by some brokers. These fees are typically charged in amounts anywhere from $10 to $30 or more after so many days go by without any trading activity on the account. Most brokers don’t charge this fee, but the best way to check is to read your broker’s terms & conditions and to check their website for a page related to their fees. While inactivity fees aren’t always charged, brokers do make money by increasing the spread and charging commissions.