While many individuals have found success with forex trading, it’s definitely not for everyone. In fact, most people that get into forex end up leaving with less money than when they started. This can be owed to a number of factors, such as a lack of knowledge on the many intricacies of the foreign exchange market or simply making too many risky decisions.
Regardless of what brings most people to fail with forex, the idea of making money this way is one that many of us enjoy. So, it’s comforting to know that a number of similar alternatives exist that don’t have as steep of a learning curve or carry the same level of risk. Read on to learn more about the best alternatives to trading forex.
Instead of having to absorb the heap of market knowledge and experience that you need to successfully trade on the foreign exchange, you can delve into copy trading. This way, you rely on the know-how and skills of traders who have been in the industry for years. Put simply, copy trading involves automatically copying the trades of other traders.
There are a variety of platforms that are tailor-made for copy trading. The most popular are eToro and 1Broker. These platforms give you the ability to choose from the profiles of millions of traders working with a variety of currencies. This includes not only forex, but also stocks, cryptocurrency, and much more.
Geopolitical instability and policy changes play a significant role in influencing the volatility of currencies. Bitcoin tends to be an exception to this, making it a safer trading method. Combined with a reliable broker platform such as Easymarkets, you’ll have access to a plethora of management tools and resources that will help you make less risky trades.
Investing in stable companies on the stock market is a much safer bet than dealing with currencies that are affected by a myriad of global factors. Most stocks also pay dividends, which is an annual payment made to all investors. In addition to what you make selling your share in that company, a dividend will also be paid out even if that stock has lost value.
If risk is not the reason that you’re searching for an alternative trading method, stocks also have the potential for large, rapid gains for those willing to make risky trades. Beginners can get started with investment apps such as Acorns. This won’t provide as much flexibility or short-term profits, but it’s a much safer way to brush up on your trading skills.
What to Avoid
Now that you know about good alternatives, let’s take a look at what you should avoid at all costs.
Forex Robots: Think about it – If there was some sort of program that could consistently make profits, why would anyone sell it?
Binary Options: Binary options are no different from gambling. It’s quite literally set up to take your money, making it a definite no-go for all traders.
Take some time to consider which trading method you’d be most competent and comfortable with. All three have significant potential; it’s up to you to make the most of it!