The boom in online trading occurred mainly after the rapid progress in communication technology. Once people across the world began to talk to each other with little or no hassle, the global community began to be even more inclusive.
Online trading was not very popular when it was first introduced because nobody wanted to trust a virtual platform with real money, but now perceptions have changed. There are new trading platforms cropping up every day on the Internet.
Forex or foreign exchange has caught the fancy of many. There is a myth that Forex traders can become billionaires with little or no effort, but that is not true. You need time and dedication in order to survive in a market that is as competitive as Forex.
As a beginner, you will face challenges that you may not have thought out before and even experts are not always correct. But nothing changes the fact that it very exciting, and more and more people are embracing the unpredictability it brings to the table.
Forex has risen in popularity in different parts of the world like the UK and the USA.
Forex in UK:
Just like the United States, the United Kingdom has also seen a surprising rise in Forex trading in recent years. It houses millions of Forex traders who want to make it big in Forex trading. They have a strong currency, which helps them to an extent, but after a point, nothing but the trader’s expertise can help in making profits.
Unlike physical trading, you will not find a central exchange or clearinghouse for Forex trading. The lack of transparency has always been an issue for the residents of UK who prefer having a secure written contact to prevent themselves from falling prey to malpractice and manipulation.
The United Kingdom has the Financial Conduct Authority (FCA) to keep a check on the Forex market and ensure that all firms and brokers adhere to ethical business conduct. Do remember that unless a firm is FCA-regulated, you will not have a guarantee for its legitimacy. The FCA has certain standards which all firms follow, or else they lose their accreditation. In fact, there is a new rule in place, which tells firms to keep client capital separate from company funds to prevent any problems, which would inconvenience clients or make them feel financially insecure.
The Forex market is extremely volatile which means that you never know what might cause a series of fluctuations and create a state of financial chaos, which could ruin a lot of trading opportunities. The United Kingdom is an advanced region, which aims to let the Forex industry flourish. Now that Forex is acknowledged as a legal asset, investors across the world are interested in making the best of the market. Since the UK is a vast market, it is natural that more and more investors are getting attracted to the location.
According to the Natixis Global Asset Management’s annual Global Portfolio Barometer, UK overseas investors have improved their performances drastically, and currency risk made a major contribution to the development. In fact, currency-related returns were higher than the underlying equity markets.
The recent past saw a number of controversies cropping up in the United Kingdom in relation to Forex firms, and hence the residents have become weary. You cannot become a Forex trader without the able support of a broker and a community because the initial trading years are bound to be tough.
Residents of the United Kingdom usually have day jobs as a result of which they treat Forex trading as a part-time work. However, you will never be able to make a name for yourself in that fashion because Forex is a field that constantly evolves. You need to be on your guard about trends and global developments if you want to grab the best deals.
Appointing a Fund Manager:
Being a self-trader can be difficult, especially because you have no guarantee of getting positive returns. Since you are investing your hard-earned capital, you are bound to get emotional at some point when you are trying to make important choices. This distraction can lead you to make disastrous choices for your Forex account, which is you need to find an alternative.
Having a fund manager is going to change your life for the better. For one, you will not have to spend time worrying about taking all the wrong decisions because you will be handing over all responsibility to a professional. Most fund managers are well-versed in the art of Forex trading which makes them perfect for handling beginner accounts. You will be surprised at the consistent returns you will be getting once you hire a manager unlike what happened when you tried your own hand at it.
Nobody is born knowing all about Forex. You learn about different signals, strategies and situations as you gather experience along the way, and that is what helps you become an expert one day. Now you can choose to learn the ropes while losing your capital, or you can choose to employ the help of a professional who will not only give you advice but also execute the best trades for you.
Forex fund managers work for a fee or a percentage commission of the profits they make for your account. At first, you might feel that it would be a lot to spend but on comparing it with the losses you might have otherwise suffered, you will find that it is a good investment. Firms also ffer the services of fund managers who specialize in particular fields. If you want help in one particular sector, then do not be shy to ask for help.
Apart from local fun management services in the UK, there are fund managers available offshore and even online. If you are looking go virtual, then you should go for certified sites like Fibopips who will take care of all your requirements.
After you hire a manager, you will still be in charge of your money and account. The only difference will be that you will have an expert opinion at every step.