In 2021, opportunities for remote work are in higher demand than ever. Due to the global pandemic, many conventional sources of income are inaccessible, and consumers are desperately looking for alternatives. Forex trading is freelance without clients. It allows you to monetize your knowledge without deadlines, reports, and negotiations.
Freelance is not just convenient in the new reality when money should be made remotely. It allows you to become your own boss and work on your own terms. The beauty of forex is that it does not discriminate against anyone. Trading is accessible to beginners and finance experts alike.
Overview of Opportunities
Most people have exchanged currencies at least at some point in their lives. This operation is inevitable for tourists and any corporation engaged in export or import. The foreign exchange is the largest financial market, and its daily volume reaches 6 trillion American dollars, according to Bloomberg estimates.
Traders access the market using advanced software like MetaTrader 5 or FXTM Trader. Today, there is a wide range of platforms that includes proprietary systems for particular brokers. A trading terminal is a comprehensive environment packed with analytical tools, position management features, etc. It facilitates every stage of a trading operation. However, a software download is not the first step you should take.
Step 1. Choosing a Broker
A broker will be your middleman. The company will connect you to the largest financial market. Its own profit is derived from the commission or spreads — the difference between prices for buyers and sellers. Not all brokers are created equal, and traders must be cautious.
Residents of South Africa have a choice between homegrown firms and famed international brokers. Big global brands are authorized by trusted monitoring organizations. For example, ForexTime is subject to supervision by the FCA in the United Kingdom, the FSCA in South Africa, and the CySEC in Cyprus. Full details of forex time licenses are available on its official website.
Regulated brokers have to comply with stringent regulations, which include negative balance protection. Their clients may never lose more than they deposit, even if their strategies are horrendously flawed. This is particularly essential when leveraged instruments are involved.
For example, you may be able to trade forex on margin with a 1:100 ratio. It means a position you open may be 100 times bigger than your balance. Of course, beginners are advised against using leverage, but it is still important to be safe. Avoid unregulated brokers at all costs. A forex scam is widespread, as trading is so popular.
Step 2. Demo Trading
Do not expect to create an account and start trading real volumes straight away. This would be extremely foolish. Every trader has a learning curve, and demo accounts are the best way to practise without putting capital at stake.
Fill in the corresponding form on the website of your broker, and check your inbox for the login and password. As a rule, these are generated almost immediately. You may enter them on the trading terminal to unlock the simulator.
The system will then imitate real market conditions and provide you with an amount of virtual money, so you can practise at your own pace. Demo accounts from popular brokers are unlimited, so there is no pressure.
Step 3. Education
It is not necessary to pay for any trading courses, as you can find a plethora of educational content online. There are articles, books, blogs, podcasts, and video tutorials. YouTube has dozens of channels dedicated to the subject. Theory without practice is meaningless, so apply your knowledge to demo trades and try out popular strategies.
Pay close attention to risk management. The majority of traders indeed lose money, but the most common reason is reckless behaviour. Do not put too much capital at stake. Generally, it is advisable to risk up to 1% per trade. Highly volatile currencies are attractive due to their dramatic price swings, but trading them is also dicey.
Step 4. Go Live!
If you feel confident using the trading system, and you know what strategy to follow, switch to a live account. Registration is still fairly simple. However, you will need to upload a few documents, so the broker can comply with identity verification requirements.
Now, you should be armed with powerful software and plenty of theoretical and practical knowledge. Once you enter the new set of credentials on the platform, the real foreign exchange will be open. You can make real profits through consistent strategies and careful risk management.
Forex as a Freelance Career
Traders are their own bosses — like computer engineers or photographers. However, they do not have clients. Traders work on their own, but they can share experience in a colossal global community.