How Start Forex Investment in the Philippines?

Forex stands for Foreign Exchange. It refers to the trade of one country’s currency in exchange for another. The Foreign Exchange market is the biggest decentralized global market and the purpose of it is to make exchange between currencies happen. The fluctuation of the exchange rate determines the value of one country’s currency against another. Investing in this market is what we know as Forex Investment. Forex investment is also known as Forex trading investment because it is an investment we are making in the currency trade market.

Who are Forex investors?

The biggest investors in a foreign exchange market are central banks, commercial banks, hedge fund investors, and money managers. Individuals such as retail traders have relatively very small investments in the foreign exchange market.

What is Online Forex investment?

In the past people had to go to the offices of foreign exchange markets to invest and get access to the foreign currency market. But now with the help of the internet, people can do that at home. They can also change their position and bettings in a currency market easily from their home. This process of investing and maintaining your position in the foreign exchange market through the internet is called online forex investment.

Forex investment has become so popular that all companies, both local or multinational, and every individual are investing in it. Many companies like Pepperstone, IC Market, and AvaTrade have been formed by centralizing these trades. They are called brokers and they facilitate individuals in becoming a part of the foreign exchange market and profit from it. Now let us go through the steps of making an online Forex investment in the Philippines and other countries as well.

Steps of Starting Forex investment

1-Open a brokerage account

The first step of making an online investment in the foreign exchange market is to open an account. For Forex investments, you need to open brokerage accounts. These accounts are the places where you will keep all your foreign currencies.

You can open a brokerage account in any online brokers, legal and available in your country. Be sure to read the terms and conditions of the broker thoroughly to ensure your financial safety. The available and reliable brokers in the Philippines are Pepperstone, IC market, AvaTrade, FXTM, Oanda etc. You can choose from any one of these brokers or your personal favorite as well.

After choosing a broker, open your account there by following the rules and agreeing with the terms and conditions.

2-Deposit funds

Now it’s time to make your first deposit. Without any deposits, you cannot open a position in the foreign exchange market and, without identity verification, you cannot make any deposits. You can verify yourself with a copy of your bank statement. Different brokers have different minimum deposits for Forex trading.

For example Pepperstone’s minimum investment in Forex trading Philippines is 200 units of Philippines own currency. On the other hand, Oanda’s minimum deposit/ investment is 0 units for standard forex trade accounts. So, make the first investment according to the policies of your broker. You can make the deposit with your own bank account. Some brokers do not allow third party bank accounts.

3-Place an order

Now, after making your investment, it is time to make some trades. Simply choose your favourite currency pairs like USD/EUR, USD/CAD or AUD/USD. There are currently 128 forex currency pairs available in the market, but you probably won’t be able to find all of them in your broker’s offerings. Try to choose one of the major currency pairs because they have the highest potentials.

In case of making a trade in the foreign exchange market, you should keep in mind that the foreign exchange market is very flexible. It can change instantaneously. Within a glimpse of the eye, the market can turn upside down. So it is wise to start with a small order and practice to gain some practical knowledge and experience about how the currency exchange market functions. Some brokers offer demo accounts, which can be used to test your strategy of forex trade in the exchange market without making any real investments.

4-Keep tabs on investments

After mastering the market and developing your own strategy, it is time to make some investments. Don’t just leave your investments. You must keep tabs on them so that you can make your move with the changing market conditions and avoid huge losses.

5-Withdrawal of Profits

You can always withdraw profits from your broker account in your bank account by placing an withdrawal order. Withdrawal via banks takes about 2 to 3 days.

You may be glad to know that you can also trade in other exchange markets with your brokerage account. You can trade with CFD, Futures, and Digital coins such as Bitcoins and Litecoin. You can even take part in the real share exchange market if your broker offers it. A brokerage account is a 360 degree opportunity in the online exchange markets.

What is the best Forex Investment Plan?

If you are looking forward to being in the forex trade scene for a long period and making your pocket heavy, then you should have a Forex investment plan.

Forex investment plans refers to the implementation of a position in the exchange market for a long period of time. Usually, one plan is implemented for several weeks or months but not for a year because the economy of every country changes randomly over the course of time.

The planning of forex investment totally depends on your knowledge, vision and prediction as well as your own personal goals. The more solid and well defined your investment plan is, the better you will perform in the foreign exchange market and make more profit.

But keep in mind that a plan might not always work. Sometimes you have to abandon your efforts for a long term plan and go off the plan to cope up with the market dynamics and save yourself from a huge financial loss. This type of rapid change is very common in the forex market and you must be prepared to make your move when they occur.

Final Verdict

The forex investment market is not like your regular investment market. It is a very dynamic market environment where you can make double the profit within seconds and also lose everything in a moment. It requires high expertise and practical experience. Even though your broker is providing you many useful tools and a friendly platform, they do clearly state that over 70% investors lose money. So it is a very high risk investment. This is why it is wise to start with small investments and move your way up to high stake investments.

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