Finding the best sources of funding for forex trading is never an easy task for upcoming traders. You now have an idea of what forex trading is. You have also gotten a lot of tutorials and have developed a good trading strategy to help you succeed in your forex trading career. One stumbling block in forex trading is to come up with the right amount of capital to start trading. The good thing about forex trading that I love is that you can start trading with little money. Some brokers even allow you to begin with as low as $100. But for some traders to come up with $100 is also a problem.
There are so many ways a new trader can come up with funds to start trading forex. So are aware of these sources. While some don’t know about the best source of funding for forex trading, in this article, let us dive into some of the best sources of funding for forex trading.
Bear in mind that some of the ways to source for funds that we are going to talk about in this article are only advisable for traders who have enough experience with trading forex. I will like to point out that this may not be the best source of funds for beginners.
Having mentioned that, let us now take a look at some of the best sources of funds for forex trading.
I remember when I was still in school. I made a habit of saving 20% every week from my feeding allowance. By the time I graduated from university, I had saved up over $1000. This $1000 was my start-up capital when I start trading forex.
As a trader looking for start-up funds, the best source of funds for forex trading is your savings. If you are the wild type who can’t save money, then try and make it a habit of saving money from today. You can start by saving 10% of any money that you have daily. If you can do this, within one year, you would have come up with good capital to start your forex trading career. I know some of us receive some allowances from our parents, especially when we are in school or even as an unemployed graduate. Why not start savings at least 10% from that money.
For a beginner or someone with little experience in forex trading. This method is the best source of funding for forex trading. This is because forex trading can be a risky business. As a result, it is best for you to start trading with your money in case there is a loss, you will have to bear it alone.
family and friends
Another one of the best sources of funding for forex trading is to solicit financial help from your family members and friends. One of my students, Tailor, who recently started trading, told me how he was able to raise $2000 from seeking financial help from members of his family and also from friends. According to him, he printed envelopes and wrote what he needs the money for on the top. These envelopes which he then to his family members and friends. Within the space of one month, he was able to raise $2500 to kick start his forex trading career. You can follow in Tailor’s footsteps by sending envelopes to your family members and friends soliciting for financial help from them to start your trading business. You can even go a step further than Tailor by printing and giving out flyers to family, friends, and even people around your neighborhood. If you follow this method and you are very consistent, within two months, you would have raised a substantial amount of capital to kick start your forex trading business.
An angel investor is someone who has money and is looking for any investment opportunity. An angel investor is always ready to invest in any business so long as it will generate a profit on his investment. A lot of traders have used this method to create capital to kick off their trading business. What you should do if you are an experienced trader and can make a profit on an invested capital, is to look for anyone who is ready to invest in forex trading. All you require from them is open a trading account with any broker of your choice. You will then be managing the account. Using it to trade. You and the investor can share the profits base on an agreed sharing formula.
When using this method to look for a fund to start your forex trading, make sure not to be greedy. Also, go for a sharing formula that will please the investor. You can agree to take 10-20% of the generated profit. Some traders go as far as demanding 50% of the profit. This demand is greedy and can drive away potential investors.
This method is not the best source of funding for forex trading if you are a beginner with little or no experience in forex trading. Because a beginner may lose his or her capital trading forex. Considering you will have to pay back the loan and in most cases, with interest.
But for an experienced trader who is 100% sure to make a profit from trading forex, then you can go for this method if others have failed you. However, when collecting a loan, always go for a loan with little interest and long payback duration. When trading with capital gotten from investment, never invest, or deposit all the loaned amount into your trading account. You can deposit half of the amount. Use it to trade while you use the other half to be paying off the loan little by little. This way, you won’t be late in repayment of your loan. This method is a precarious way of sourcing funds for your forex business. But if you are sure you can make a good profit on your investment, then you can apply this method.
The above-explained ways are some of the best sources of funding for forex trading. If you are an upcoming trader or even an experienced trader looking for funds to start trading, then you should try out some or all the above-listed methods. Some methods are not advisable for beginners. If you are a beginner, use suitable ones. An experienced trader can follow and use all the techniques explained in this article. So what are you waiting for? Go and try out the best source of funding for the trading of forex listed above.