Is Forex The Best Alternative to The FTSE?


The rules for pensions have changed in recent months, and those changes have encouraged investors to consider the other options that are available to them. The FTSE 100 is appealing to a lot of people, especially since it is currently approaching an all-time high, but many other investors are considering learning how to operate in the commodities or currency markets. This movement has been prompted, in part, by concerns that many of the shares in the FTSE 100 are over-valued, and that should a new high be reached, it will be short-lived and followed by a strong period of market correction.


Learn online: It is easier than ever before to learn trading online. Whether you want to know how to trade currencies or you want to invest in something more tangible, there are online brokers that can help you. There is no need to take trading seminars to learn how to trade. In fact, an investigation conducted by The Guardian ( found that those seminars, while indeed providing useful information, include too much up and cross-selling, and that they cannot guarantee success. It can be appealing to take an “official” course so that you can learn what not to do without having to put your own money at risk, but what many traders don’t realise is that you can learn and practice without putting real money at stake.

A diligent and dedicated currency trader who wants to learn the markets can take advantage of detailed knowledge bases, free sample accounts, trading videos and much more online. It is possible to test your trading abilities using “play money”, and even learn the basics of leverage and margin in that fashion. Once you feel comfortable with this sort of thing, and have an idea of how much, on average, you are likely to gain or lose in real trading, you can open a real money account and start investing.

Trading platforms such as iforex make it easy for newcomers to take part in the markets. There are micro accounts for people on smaller budgets, and bigger accounts for those who are less risk-averse.

Warnings for Beginners: Currency trading is a good option for newcomers to the world of investing, as long as they understand that the value of an investment can change rapidly. While the FTSE has gone through a long bullish period, many analysts think that it is close to peaking. Commodities are a challenging market too, but currencies offer an opportunity for new investors to capitalize on short-term movements between two relative currency pairs. Traditional safe-havens such as the CHF and the JPY are appealing starting points, and those who crave more activity can look at the popular currencies such as the USD, GBP or CDN.

Forex trading can be fast paced and can offer good gains, but your fortunes can turn quickly too. Take the time to learn how to set stop losses and use the other features of your favourite trading platform so that you can protect yourself from those market fluctuations.

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