As we enter the year of 2021, the world is struggling to recover from the Covid-19 pandemic fallout. Millions of livelihoods have been affected, and for those who find themselves out of job and stuck at home due to social distancing measures, are looking out for ways to make money online.
Among the many popular options out on the market – from eCommerce, dropshipping to freelancing – day trading remains one of the more popular options. As illustrated by Google Trend, the term “Forex Trading” has gained quite an interest since early 2019 and more so at Mid-2020:
There are a couple of reasons why Indians have begun to take an interest in this endeavour.
You are not limited by time and location
Foreign exchange market operates 24 hours a day and 7 days a week. When the US market closes, the Australian market opens. Followed by the Japanese and London market. Because of the nature of international currency markets, there will always be trading activities at any hour of the day, although most would still prefer to trade at weekday hours in the US time zone since that accounts for the majority of the total trading volume.
Forex trading doesn’t require complex infrastructure or anything. All you need is a fast internet connection and a computer or laptop, and you are ready to go. Even without the latter, worry not! As many reputable Forex trading brokerages in India have started offering mobile trading, hence literally you can be trading anywhere you like!
Low Starting Capital
Whatever business you are in whether physical or online business, you need capital to begin
your venture. The amount varies depending on your business model, and for most people, they simply do not have the luxury of striking out on their own – hence, the reason they work for others. Besides, certain studies have shown that 90% of businesses fail to remain operationally viable.
The risks of losing your capital and time are huge. Forex, on the other hands, requires low starting capital. Although most people begin with $300 – $500 trading capital, you can start an account as low as $100. Certain brokerages would also offer attractive bonuses if your deposit hits a certain threshold. And if you worry that you may not cut it, you can start with a demo account and practice paper trading i.e fake money.
The Largest Market In The Financial World
You may have heard of stocks since the popular ones are also ones where people have exposure or are consumers to their products or services. Think Tata Motors, Havells India, and Laurus Labs.
But did you know that the stock market is actually a tiny fraction of the global Forex market to which more than $5 trillion are traded on average every day? Because of its colossal scale, it offers tremendous opportunities for market participants to trade the market.
The forex market is fair and transparent, and unlike stocks, there are no risks of insider trading. Market manipulations are also near impossible since no individual or group of individuals are big enough to move the multi-trillion forex marketplace. Compared to the business landscape, you don’t have to rely on connections from friends or family, and neither do you need to impress and make someone like you. In the financial market, you get rewarded based on your effort and ability. Nothing more.