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The world of forex trading is complex, and even experienced traders can become perplexed sometimes as a result of forex’s unpredictable changes. If you’re new to forex, you might be wondering how to make money in Forex without actually trading, and whether it’s even possible to make a profit from such a complex market as a complete beginner.
In this article, we’ll explain how you can make money from forex without actually needing to trade, helping even complete novices begin forex investment.
Is It Really Possible To Earn In Forex Without Trading?
There’s no denying that forex is a risky market, and even the most experienced of traders will struggle to make a profit in forex all of the time. This is because forex can be quite uncertain, changing direction frequently.
You might be wondering whether you should stay completely clear of forex as a beginner trader, but we’re here to tell you that there is a way to get started in forex that is suitable for complete novices.
Read on to discover how you can make money in forex without actually trading.
What Is Forex?
Forex is a portmanteau (blend) of the phrase ‘foreign exchange’. You might also see it being shortened to FX. You’ve probably heard of foreign exchange before – it’s the global marketplace for exchanging currencies against each other.
When you go on holiday, you might take your currency and exchange it for another. When you return home, you’ll take whatever you have left over and exchange it back into your home currency. Similarly, if you’re living in the UK and want to buy clothing from the US, your money will be converted from pounds into dollars for the purchase to be completed.
Forex is decentralised, meaning that it isn’t confined to a central marketplace. This means that forex offers a chance for people across the world to get involved with trading, by buying, selling or exchanging currencies at current or determined prices.
It’s thought that the daily forex trading volume now sits at around $6.6 trillion, demonstrating the huge scale of the forex market. This makes forex the biggest market in the world today, offering traders the opportunity to trade 24 hours a day between Monday and Friday.
The Three Types Of Forex Markets
There are three types of forex market that you should be aware of. These are:
- The spot market
- The forwards market
- The futures market
The largest forex market is the spot market. The currency transactions which go through this market are conducted according to the current exchange rate. This price is determined by supply and demand and is a reflection of many different factors, including current interest rates, political situations and economic performance.
The forwards and futures markets work differently. Rather than being based on the current trade price, these markets operate through contracts. Buyers and sellers agree prices between themselves, agreeing to a contract that will be settled at a future date. These contracts can be bought and sold, before being settled for cash upon expiry.
The Secret To Earning Money In Forex Without Trading
The forex market can be complex and comes with an element of risk, especially if you’re a novice with little experience in the market. So how could a beginner get started with forex without having to actually trade?
The secret to earning money in forex without actually trading is through copy trading. This is a way of getting started with forex which can reduce the risk. However, it’s important that you understand the basics of copy trading before you get started.
Read on to learn more about copy trading and how you can use it to begin your journey into forex.
What Is Copy Trading?
Copy trading is a type of trading which allows you to mimic the trading actions of a more established trader. In this type of trading, you rely on the experience and knowledge of an established trader to try and earn a profit yourself.
Rather than needing to make any trading decisions yourself, you simply replicate the trading patterns of your chosen traders. This can be done automatically using an automated trade bot, using a signal service or through a copy trading service that manages investments and returns.
Copy trading is popular with traders who are new to dealing in forex, who are looking to build up experience without the high levels of risk usually associated with the market. It’s also favoured by traders who don’t have the time to commit to traditional forex trading as they can enjoy the benefits of trading without needing to study graphs.
Is Copy Trading A Safe Way To Begin Forex Trading?
Copy trading helps to minimise the risks of forex trading which is renowned for being unpredictable and complex. This type of trading allows investors to mimic the actions of experienced traders, to begin making profits without needing any prior experience of forex trading.
However, successful copy trading relies on choosing the right trader to mimic, as well as the right copy trading platform to trade through. It’s important to remember that when you begin copy trading, you’re essentially investing in the trading strategy of your chosen trader.
If your chosen trader makes a profit, you will also make a profit. However, it’s important to remember that if they make a loss, you will also replicate that loss.
There are a lot of people out there who call themselves experts yet are consistently losing money. If you choose to follow these people, you will replicate their failures for yourself. That’s why it’s so important that you carefully consider which trader you want to follow, to minimise your risk and maximise your returns.
Forex copy trading can be both rewarding and profitable, but only if you do it right and are fully aware of the risks that you are taking. The key to successful copy trading is choosing the right copy trading services. This can involve a lot of research and testing.
What Is A Copy Trading Service?
We’ve already discussed what copy trading is and how it can help you to minimise your risk when you begin investing in forex. But what exactly is a copy trading service and why should you use one?
A copy trading service, also known as a copy trading platform, facilitates copy trading by matching those interested in trading with more established traders. This means that novice traders can benefit from the knowledge of experienced traders, whilst established traders earn money by sharing their trades.
There are a few different types of copy trading services that you should be aware of. These include signal services and automated services.
Signal services will send you an alert when your chosen trader performs a trading action. You can then decide whether to mimic the action of the trader or to take a different action. Signal services are ideal for people who want to feel in control of their trading whilst still benefitting from the knowledge of an experienced trader.
Automated copy trading services include automated trade bots. These services perform trades on your behalf, replicating your chosen trader. Automated copy trading services are often used by people who don’t have time to spend looking at graphs, or who are happy to rely on established traders to earn a profit.
But How Do You Know Which Copy Trading Service To Use?
So, now you know what a copy trading service is, but how do you know which copy trading platform to choose?
There are many different copy trading services out there, but not all of them are profitable or effective. The last thing you want is to invest your hard-earned cash in a platform, only to discover that it’s a scam.
You need to be sure that the platform you’re investing in is genuine, as well as having a good track record. Effective forex copy trading relies on choosing the right platform, but how do you separate the scams from the profitable services? That’s where Trade Wise comes in.
I’ve spent the past decade trying out hundreds of copy trading services. I’ve researched, tested and reviewed each platform to discover the genuine investment opportunities, making all of the mistakes so that you don’t have to.
I want you to be able to jump straight into the world of copy trading with an effective and profitable copy trading service. Choosing the right copy trading platform will allow you to begin your forex copy trading journey with the least possible risk.
I’ve put together a guide to the top 3 rated copy trading services, to help you to choose the right copy trading platform to begin your journey into forex trading. By choosing the right copy trading platform, you’ll reduce your risks and give yourself the best possible chance of earning a profit trading forex.
Does Anyone Make Money Trading Forex?
People across the globe are making money trading forex every single day. In fact, there are people who make their entire living out of trading forex. That’s why the number of forex traders is increasing every day.
However, it’s also important to remember that like any type of trading, profits are not guaranteed and your capital is at risk. In forex trading, one party always has to lose for the other to make a profit. It’s a challenging market to trade in due to the unpredictability, but the potential rewards can be huge.
Can I Start Trading With $1?
The simple answer here is that your minimum investment will depend on which copy trading service you choose to use. Each service will have its own minimum account size which will dictate the minimum investment that you can make.
For example, Ranger EA has a minimum account size of $100, so you’ll need to invest at least $100 to begin trading. In contract, Yieldnodes has a minimum deposit level of €500, so you’ll need to invest at least €500 to use the Yieldnodes copy trading platform.
There are services which offer a much lower minimum deposit, but these aren’t always the most effective or reliable copy trading platforms. To learn more about the most trustworthy copy trading services on the market today, check out my guide to the top 3 services.
Can A Beginner Make Money In Forex?
Forex is a complicated market, and even expert traders sometimes become perplexed with the unpredictability of forex. However, copy trading offers a way for beginners to learn about forex trading without the high levels of risk often involved with this market.
By mimicking the trading activities of a more established trader, you can learn about forex trading whilst making a profit, without taking on a high level of risk. Whilst copy trading, you can begin to learn the jargon of forex, as well as understanding how the market works. When you’re ready, you can then progress to making your own trades, if you choose.
Earn Money Through Forex Without Trading
Forex is a complex and unpredictable market whilst can leave even expert traders perplexed at times. However, it’s perfectly possible for even beginner traders to get involved with forex through copy trading.
The most important thing when starting copy trading is to choose the right copy trading platform. This will help to minimise your risk and maximise your potential returns.
If you’re ready to start forex copy trading, take a look at my top 3 services guide. This will show you the most trustworthy and profitable copy trading services on the market today, helping you to get the best possible start to your forex copy trading journey.
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Read my top three copy trading services guide here.
Also see our LQDFX reviews, FXPrimus broker review, review of FXchoice, think markets reviews 2023, Zulutrade copy trading review, IC Markets review, Ava trade reviews 2023.