If you’re looking to make a little money on the side of your full-time job, then there are plenty of options out there. Get a paper round, become a part-time Uber driver, enlist in medical trials or, for a more realistic and worthwhile choice, consider forex trading. You’ll need to set aside some starting capital first but once you consider the following you should be able to decide whether forex trading is a good side hustle option for you.
How Easy is Forex Trading?
On paper forex trading sounds straightforward. You simply trade currency pairs, buying one against the other, wait for it to increase in value and then sell for a profit. However, there are many factors that affect currency value and they can experience large price fluctuations that greatly affect investments. The use of leverage, the ability to trade CFDs on forexand the potential to make large losses and well as profits can make things harder. Still, all you need to get started is a trading platform and a decent knowledge of the market.
What are the Pros and Cons?
There are a few pros and cons of forex trading on the side. Pros:
· Accessibility: The forex market trades 24/5 so you can trade whenever suits in the week
· Leverage: Access to leverage means you only need a small amount of initial capital to begin trading forex
· Low fees and commissions
· Automation: It’s possible to automate trades so you don’t have to spend too long in your spare time trading
· Volatility: The forex market is the most volatile in the world, which can affect your trades a lot on a regular basis
· High leverage = high risk
· No centralised exchange and less regulation can make it risky
For those who do start trading forex as a side hustle, treat it like a business. It can be easy to just invest some money and keep pumping in more. If this was a business though, such a model wouldn’t work, so why should it now? Losing money even if it’s spare cash isn’t good, so consult an expert or stop if this does happen.
Get to grips with any trading platform you intend to use first by downloading a demo account, to see how successful you may be when trading forex. Being able to trade through mobile devices can help you use your time more efficiently as well.
Hopefully now you will have a better idea if trading forex on the side will be a good idea for you or not.