Trading Forex is not, strictly speaking, an “investment,” in the sense that investing in a bond or a stock is. Traditionally an investment should be held for a long time to appreciate in value, and is usually a low or balanced risk, while the majority of forex trades are short term and higher risk/reward, completing in a matter of minutes or hours.
When you trade forex, you put your money at risk in an investment strategy. However, the risk can be managed with a prudent trading strategy.
Broker | Our Rating | Description | Minimum Deposit | Regulation | Visit | |
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| $100 | Central Bank of | Visit Broker AVATrade ReviewT1 ROTW | Risk Warning: Your capital may be at risk | |
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| $1 | IFSC | Visit Broker FBS Markets. ReviewROTW | Risk Warning: Your capital may be at risk | |
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| $5 | CySEC, IFSC, ASIC | Visit Broker XM Group ReviewROTW | Risk Warning: Your capital may be at risk | |
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| $10 | CySec | Visit Broker IQOption Review | Risk Warning: Your capital may be at risk | |
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| €100 | FCA, CySec, ASIC : | Visit Broker Plus500 ReviewT1 ROTW | Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | |
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| $5 | FSC | Visit Broker HF Markets Ltd. (HotForex) ReviewROTW | Risk Warning: Your capital may be at risk | |
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| $100 | ASIC, CySEC | Visit Broker Easy Markets ReviewT1 ROTW | Risk Warning: Your capital may be at risk | |
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| $100 | CySec | Visit Broker Markets.com ReviewT1 ROTW | Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | |
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| $100 | CySec | Visit Broker FXPrimus ReviewROTW | Risk Warning: Your capital may be at risk | |
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| $1 | RAFMM, The Federal | Visit Broker InstaForex ReviewROTW | Risk Warning: Your capital may be at risk | |
![]() | 10 | Visit Broker OLYMP TRADE Review | Risk Warning: Your capital may be at risk |
As in all investment strategies, there is a ratio of risk versus return. Risk is high in forex trading, but it can be managed.
The high level of risk stems from the number of forces that affect the global forex market.
One can understand the technical reasons for a move in a given currency, but that move may go the opposite way due to a political or even a climate event. A storm, a plane crash, an election – all of these may change the rules about what happens to your trade.
And this is why a good trader starts the day by studying the calendar of events on forex websites, and by reading the news carefully. Even then, stuff happens. That’s what the stop loss is for.
So traders manage the risk when they put money on the forex market. They make use of the limit order and the stop loss.
They watch for patterns of trading, so that they can predict market action. Technical trading is all about this kind of pattern-spotting, and, in orderly trading – and there is orderly trading on many markets when events do not intervene – it’s possible to follow, for example, a Fibonacci retracement, to let it take its course, and to take advantage of it.
Orderly trading takes place most of the time, and, as a result, putting money on the forex market is safe if you understand what you are doing. A disciplined, well-educated trader is a safe trader.
Your capital is at risk. Trading in Forex and Contracts for Difference (CFDs) is highly speculative and involves a significant risk of loss. The information contained in this publication is not intended as an offer or solicitation for the purchase or sale of any financial instrument. This website is provided for informational purposes only and in no way constitutes financial advice. A featured listing does not constitute a recommendation or endorsement.
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