Most new investors contemplating making money online ask themselves the obvious question: What is online currency trading?
First, investing in any sort is usually challenging, as proved by most newbie investors, and traders always lose money.
However, with the proper orientation, practice, education, patience, and hands-on experience, success is attainable.
Most investors flock to the currency trading market because it is the most significant investment market globally.
The Foreign Exchange Market (FX, or, Forex, currency market) also attracts hundreds of thousands of new investors every day.
The most prominent trading center is in London. The United Kingdom accounted for 43% of the total trading volume, making it the most notable geographical trading center globally.
Currency Market Size & Liquidity:
The Forex market is known for the highest liquidity financial market. Traders are primarily governments, central banks, commercial banks, financial companies, corporate investors, speculators, individuals, and anyone you can imagine.
As per recent studies, the average daily trading turnover was about $6.6 trillion in April 2019. The numbers are growing exponentially year by year.
The currency market trading volume increased by 20% between 2007 and 2010.
Driven by an increased turnover, high-frequency traders, and retail investors, the trading turnover more than doubled since 2004.
The emergence of electronic or online trading execution has also increased market liquidity and attracted a new type of clients.
Moreover, online trading is carried out through online websites/portals, making it easy for anyone to take part and invest online.
The top currency traders by volume percentage until June 2019 are as follows:
% of overall volume, June 2019
Rank Name Market share %
1 United States JP Morgan 9.81 %
2 Germany Deutsche Bank 8.41 %
3 United States Citi 7.87 %
4 United Kingdom XTX Markets 7.22 %
5 Switzerland UBS 6.63 %
6 United States State Street Corporation 5.50 %
7 United States HCTech 5.28 %
8 United Kingdom HSBC 4.93 %
9 United States Bank of America Merrill Lynch 4.63 %
10 United States Goldman Sachs 4.50 %
What Is Online Forex Trading:
Foreign currency exchange means to change one currency into another one.
Exchanging can be done for many reasons, including commerce, tourism, trading, and much more.
Moreover, the daily forex trading volume is more than $5.1 trillion in daily transactions.
Before the internet era, trading currencies was extremely difficult for individuals because it required significant capital.
Most traders were local and international corporations, high net worth individuals, and hedge funds.
Thanks to the internet, many companies emerged to provide a retail currency trading space for individuals.
Thus, most online brokers offer very high leverage to individuals who can now open large trades with a relatively small amount of money.
This is done through the broker’s secondary market or the banks.
Pros & Cons Of Forex Trading:
The pros of FX trading are many, but we will only mention two:
- For a small spread, you can open or close a position in any of the major currencies quickly within seconds. Moreover, the forex markets are the biggest in daily trading volume.
- The market is always open, 24 hours per day, Monday to Friday, starting from Australia and ending in New York. The most notable centers are New York, London, Sydney, Honk Kong, Paris, Singapore, Tokyo, Frankfurt, and Paris.
The cons of FX trading are also essential to take note of; we will state the most notable two:
- Knowledge is power. Like everything else, if you are looking to succeed in the forex markets, you must understand your trading currencies’ international and local economics. You must also be aware of the countries’ economies and the interconnection or correlation of currencies.
- The high amount of leverage: It is widespread to see brokers, dealers, and banks allowing a leverage ratio of 100:1, a super-high ratio. If you are a trader, you must acknowledge that this ratio can work for and against you and lead to a dealer’s insolvency.
IQ Option Broker:
One of the best platforms to start your trading journey on IQ Option. The company is owned by IQ Options Europe LTD, which provides financial services with a Cyprus base.
Thus, it is considered a Cypriot Investment Firm with a Cyprus Securities Exchange Commission (CySec).
Since 2013, the company offered online trading options to customers with minimum deposits as low as $10 along with a free demo account.
The rate of Growth of IQ Options is exponential. We will go with only a few but very relevant statistics:
- Accounts registered: From 960,000 in 2014 to 48,100,000 in 2020.
- Trades per day: From 145,150 in 2014 to 1,338,793 in 2020
- Trading volume per month: From $13 million in 2014 to $290 million in 2020.
- Traders withdrawals: From $134,580 in 2014 to $20,175,000 in 2020.
- Withdrawal time: The average time of withdrawal processing is 11 hours.
- Support team: From five in 2014 to seventy-eight in 2020.
IQ Options Awards:
Also, IQ Option has won many awards over the past few years, establishing them as one of the leading brokers in the FX and Binary Options world.
Also, binary options are a lucrative way to make money out of your investment in a short time. You should always beware of the risks involved and continually educate yourself before investing.
Do not invest what you can not afford to lose, a golden rule that many neglect and forfeit their life savings with a blink of an eye.
Invest In IQ Options & Make Money!
Binary options are the fastest way to start making money in the Forex market.
IQ options profit per open position is up to 78%!
To give you a numerical example of the earning potential, consider that you deposit $1,000 into your IQ Option account. You can now open a position predicting the Euro/USD will go up within the next 30 seconds.
You are in complete control of the amount you wish to invest in that position. It can be as low as 1$ to as high as your total account balance, in this case, $1,000.
At a 78% return, if your prediction is correct, the earnings will be as follows: (For some currency pairs, the return can be up to 92%)
- $1 position will generate $7.8 in net profit.
- $10 position will generate $ 78 in net profit.
- $100 position will generate $780 in net profit.
- $1000 position will generate $7,800 in net profit.
If you consistently educate yourself and follow a strategy, binary options can be a lucrative way of making money.
As you can see, numbers can add up very quickly.
We advise you always to follow the news, read documents, and proceed with caution. Never invest your full balance amount into one single position.
Try to diversify between different currency pairs and be cautious. Whenever you find yourself in profit, withdraw your earnings quickly until you reach a point where you recovered your initial investment.
For general and business inquiries, send us an email here: firstname.lastname@example.org
Disclaimer & Investment Risks
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs. It would be best to consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
If you find this post helpful or have any comments, questions or information, please do not hesitate to use the comments box below!