Not all forex traders are successful, but there are those who have generated impressive profits very quickly. Some of them have even ended up as millionaires simply through trading. Take, for instance, 21-year-old millionaire and TeamFX founder Dan Legg, who started trading at 18 and became a millionaire soon after. There's also Simz D’Mandla, a trader from South Africa, and Luke Blackburn from Yorkshire who both reached a net worth of seven digits before the age of 23.
They all continued to use the forex market after becoming a millionaire as well.
If you are wondering why millionaires trade forex, and why forex trading has turned many into millionaires, here are three reasons:
It allows them to crypto trade
The forex market allows traders to make transactions using cryptocurrencies. Bitcoin and other cryptos are expensive to trade and lucrative currencies to invest in, making them extremely appealing to high earners and millionaires who can afford them. In fact, as we have discussed in a previous article entitled Bitcoin More Expensive Than Gold, we noted how crypto was the best-performing currency last year - sold at $1,294. Some financial experts even argue that cryptocurrencies are the "new gold," as more investors flock to them. Due to their value, cryptos allow for a faster generation of profit when traded over forex.
It’s a 24-hour market
Currency markets are dependent on banks, commercial companies, investment firms, and forex brokers all over the world. This global network is why the forex market is open 24 hours a day, from 5 p.m. EST on Sunday until 4 p.m. EST on Friday. Other popular trading investments, like day trading, have a much shorter time frame, which gives forex traders more leeway to find and make big trades.
Its liquidity is high
According to the European Business Review, the global forex market has a daily turnover of more than $6 trillion (€5.09 trillion) with its profitability being attributed to its high liquidity. Because of the increased volume and frequency of trading, currency pairs can be bought and sold without significantly changing the exchange rate. Small economic events cannot significantly impact the trading market, making forex a very secure and steady way to make money. Investors can use this money to grow their businesses, fund more trading investments, or purchase physical assets. As they grow their portfolios, their chances of becoming millionaires increase.
How can you get started
If you are looking for a way to grow your wealth and become a millionaire yourself or if you've already reached that high net worth and are looking to grow it further, here's how you can get started on forex.
Your first step should be to create a forex trading account on a reliable brokers' platform. There are two things you should look out for when choosing a broker: proper licenses and good security. Applying for an account on forex brokerage FXCM is done through a heavily-encrypted server, protecting your data. Like all reputable brokers they are very transparent with their fees, so you always know how much you are charged for their services. They also have a demo account that lets you get comfortable with trading before investing actual money. This is something to look out for when choosing a broker.
The best trading platforms should also have charting features, which will help you predict the direction of a currency pair depending on recent trends. This is in line with millionaire Alexander Elder's biggest trading tip: to monitor market dynamics, so you can predict how assets and currencies move. By keeping a close eye on market trends and global events, as well as learning when to take a risk and when to hold back, you will be able to make the trades that can generate a lot of money.
Now that you understand how forex could make you a millionaire, it is time to put those skills and resources into practice.