Try forex trading instead of stocks
MANILA, Philippines - The foreign exchange (FX) or forex market is one of the fastest-growing financial markets today, and Filipinos need to take advantage of this, a finance executive stressed.
Paul Familiaran, Asia Account Manager of Forex Capital Markets (FXCM), said 9 out of 10 clients he works with have made the move from stocks to FX trading.
At the Money Summit and Wealth Expo in July, Familiaran said the public must consider participating in the FX market as there are many avenues to learn the basics of FX trading locally.
FX trading advantages
FX trading has an edge over the stock market, which remains popular, Familiaran said.
"In the stock market, you can only make money if the market is bullish. Here, bullish or bearish, you can earn,” he told his audience.
Familiaran also said the FX market is a 24-hour market – a major advantage since most equity traders have day jobs. The FX market allows them to trade and study the market longer and during their free time.
The FX market pays rollovers due to the trading of currency pairs like, say, the euro and US dollars. Rollovers are interest paid to the investor everyday, resulting in higher returns.
Where to begin
It will help if newbies and professional investors alike seek the help of forex brokers.
Familiaran said his firm, FXCM, has "in terms of accounts, around 90,000 live accounts and 700 institutional clients. In terms of scope of clients, it deals with retail investors… fund houses and even banks."
It doesn’t require a massive investment to open an account with FXCM. A beginner can easily sign up and trade with a $50 account.
“FXCM provides margin. We give you a 200 to 1 leverage, giving you buying power… so people can hold positions 200 times their investments,” said Familiaran.
The FXCM and the dailyfx.com offer potential investors a glimpse into the FX market. The site contains several valuable applications that participants can use to watch the movement of the market and their investments.
The site dishes real-time news and interactions with professional FX traders. Members of dailyfx.com get the chance to learn from FXCM strategists and discuss with them their investment plans.
For those who want to try investing without shelling out an actual amount, FXCM offers demo accounts.
In FX trading, experience is necessary. “It’s like any kind of investment instrument, there will be winners, there will be losers. It’s up to you how you manage your risks so that when you lose, you don’t lose big, but when you win, you win bigger," Familiaran said. – Rappler.com
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