If you’re in Ghana, and are looking to earn passive income through an online source, trading the forex markets is a viable tool to enable you to make money online.
Forex Trading, also known as FX trading or more commonly, currency trading, refers to the buying and selling of international currency pairs. As with any trading activity, the aim of Forex trading is also to make a profit, mainly by exchanging one currency for another with the expectation that the prices will alter in favour of one against the other.
Currently, the fastest growing sector of the online FX market comprises individuals. Other major sectors include Securities dealers and large commercial banks (collectively referred to as the interbank market), smaller banks, hedge funds, and multinational corporations.
Unlike other financial or capital markets, the forex market does not need a physical location to operate from, but rather via an electronic network of corporations, banks and individuals engaged in trading one currency for another. This makes it possible and convenient for forex markets to operate 24 hours a-day, five day a week across different time zones and financial centres. What makes this possible is the overlap in trading times of major sessions; hence the best way to make money online, working from home.
The factors that contribute to the Forex market being the largest include the facts that it’s the most liquid market; has easy round-the-clock access; and low cost to partake and invest in. In addition, you can exit even more quickly when you take a plunge, and experience set-backs, which are occurrences that come with every trade.
Below are pointers to help you earn money online from home in Ghana:
- Find the right Forex Broker
The importance of trading with a most trusted and reliable forex broker cannot be overemphasized. As you set out to earn money online through forex trading, look for a broker who is licensed and regulated in multiple jurisdictions, and offer good customer support.
You should also find a broker who follows the rules of the industry, and has a track record of good trading practices. It’s important to ensure that your broker complies with the regulatory framework intended to preserve the integrity of the forex market. It’ll also be in your advantage to find a broker that offers competitive super-tight spreads like Geldex.
Geldex Invest is licensed and regulated by the most leading financial regulatory authorities for international brokerage firms. Geldex also has the technology to ensure up-to-date platforms and market integration systems for clients, as well as strong order execution; ultra-low latency and minimal slippage courtesy of our customized, built-for-purpose advanced technology and dedicated servers. Additional features that make Geldex the best are:
- Autonomous physical presence in Ghana
- Easy Account Opening and Verification Procedure
- Funding In Local Currency (GH¢)
- Deposits And Withdrawals Through Mobile Money & Local Banks
- Negative Balance Protection
- Exceptional Customer Support (You’re Assigned a Personal Account Manager)
- Great Promotions and Bonuses for You
2. Learn the basics of Forex Trading & Understand the Market
Like any money-making venture there is, the Forex market has its own unique characteristics, and it is essential to learn the basics of the trade. For Forex trading, this ranges from acquiring knowledge of the operative terminologies to familiarizing yourself with the geo-political and economic factors affecting the currencies you choose to trade online in. In order to earn money from forex trading, the following are a few of the terminologies, you need to enhance your knowledge of:
- Currency Pairs: It’s important to note that currencies are always traded in pairs (e.g., EUR/USD; GBP/JPY; EUR/AUD; NZD/JPY, etc.), and are further categorised into 3 major types- Major Pairs, Minor Pairs, and Exotic Pairs. The EUR/USD remains one of the most traded pairs in the forex markets, and for beginners, we highly recommend that you trade in major currency pairs which hold higher liquidity and narrower spreads such as the USD and the EUR. In effect, narrow or tight spreads translate into limited loss exposure for you.
- PIP (Percentage in Point): This refers to the smallest unit of currency price movement. If you take a good look, you’ll realise currency pairs are always quoted with 4 decimal places. A pip is thus equal to 0.0001. In some rare cases, like with the USD/JPY pair, however, a pip is equal to 0.01
- Base Currency and Quote Currency: The currency featured on the left side of the currency pair is the base currency, whereas the quote or counter currency is featured on the right side of the currency pair. Hence, in our EUR/USD example, the EUR is the base currency, while the USD is the Quote currency.
- Bid and Ask Price: The Bid price is the buying price of a base currency, while the Ask price is the price for selling the Base currency. In practical terms, it is the price at which a Forex Trader wants to sell a currency pair for, and an Ask price is the price at which a Forex Trader will buy a currency pair at. Example EURUSD BID: 1.1500 ASK: 1.1502 The Bid price is always lower than the Ask price
- Spread: This simply refers to the difference between the Bid and Ask price. When you buy a currency pair, you’re in practical terms, buying the base currency and selling the counter/quote currency. The reverse applies when you sell a currency pair. Put more simply, the difference between the amount you need when buying a specific currency, and the amount you receive when selling it, is what is known as the spread.
- Lots: Trading currencies takes place in Lots, with there being 3 types of lot sizes, based on the units; Micro Lot (1,000 units), Mini Lot (10,000 units), and Standard Lot (100,000units).
- Fundamental and Technical Analysis: the skill to read and analyse the market, is a critical aspect of earning money online by trading the forex market. Whereas fundamental analysis refers to being in touch with the news and updates of the economies whose currencies you’re trading in to determine the likely impact of a particular situation on a currency’s value, technical analysis refers to your ability to read and interpret charts of pricing trends, to enable you make educated or informed speculations about the currency price movements. Geldex helps you in this aspect as well, by providing you with market analysis from our team of market experts.
Education resources are particularly important for beginners. If you’re new to trading, you’ll find very helpful material on our website. As you grow as a forex trader, you’ll find certain tools that will become part of your daily journey include fundamental analysis, trading strategies and risk management.
In addition to the above, studying the forex market should always be work in progress, and one needs to be prepared to adapt to changing market conditions and major world occurrences. It’s also important to develop a robust trading plan to help you assess your options based on your investment objectives and risk tolerance.
To learn more about Forex Trading, please go to the Educational Academy on our website www.geldexinvest.com . The end goal of our Forex Institute is to enhance your knowledge of forex trading and how the forex market works, helping you hone your trading style and developing a trading strategy that best suits you.
3. Practice on a Demo Account
Most major credible trading platforms will offer you the opportunity to practice on a demo account, without actually spending money. It’s always a good idea to take advantage of such a platform, so you don’t lose money incessantly while you’re on the learning curve. This enables you to learn from your mistakes, so you don’t repeat them on a live account. Geldex offers you the opportunity to practice what you’re learning from our forex Institute on a demo account specially designed to give you a live account experience.
4. Become an IB/Partner with Geldex
When you sign up as an Introducing Broker or partner with Geldex, you can earn high rebates or commissions. As you grow the number of traders you refer to our platform, the commission you earn also increases.
If you’re an existing trader with Geldex Invest, you can add a passive income stream to your earnings this way.
In conclusion, when it comes to earning money trading forex online in Ghana, whether you are an experienced trader or a completely new entrant, the critical factors to help you achieve financial success are: finding the best possible Forex broker, educating yourself, proof-testing a strategy that suits you, and robust risk management practices.
As an investor, you should remember your place in the forex market, and on the learning curve; approaching forex trading with level-headedness and a practical mindset. The forex markets can move unexpected ways, and one strategy you can adopt is to start small, learn as you go, and gradually gain the momentum to earn huge profits online.