“It’s not your salary that makes you rich. It’s your spending habits.”
And one of those spending habits must be the investment. There is no alternative to proper investment and even a mere return can turn the tides in your favor. Be it gold or stocks, chances of investment are huge and high market volatility will reap you huge profits. However, many back away from these markets due to the initial cost involved and put the thought of investing away for some other time. In foreign exchange market, on the other hand, you can start forex trading without a deposit and at times, do not require any initial amount.
The currency exchange market is considered to be the most volatile among all the global financial markets and returns from this form of trading are huge. Unlike gold and stock, this is not country specific and do not fluctuate according to product demand. In this market, you can start forex with no money and end up making a profit. Find out how.
No deposit Account
In order to start trading, you are required to open a fx live account with a broker. Generally, you are required to transfer some initial amount into this account and trade with that amount. However, with increasing competition in the market, allow you to start forex with no deposit accounts. These have the following features:
- You do not have to put in any initial amount in order to make your account live.
- At times, transfer an initial amount in this account, typically in the range of $5-$100, for you to start trading.
In short, you are not contributing any amount from your side and on top of that, you are getting free money to start trading forex.
Say, you have received $100 initially. With a 100:1 leverage margin from your broker, you can trade with $10,000 lot size. A 2% profit on this means you are getting back $200, which when converted to your initial $100, stands at $2. Now, you can forward $102 in your next investment and a further 2% will make your profit stand at $4.04. You are making money from nothing.
This is another way to start trading forex free of any initial contribution. Stronger and stable economies like Japan and US lend out their currencies at low-interest rates. This creates a demand for their currency and appreciates its valuation. You can borrow a certain amount of USD or Yen for one year.
With this, you can buy currencies like AUD and NZD offering high rates. Lending out these will enable you to earn from the difference in rates. Also, you can wait for the bought currencies to appreciate in value and make the profit from the same. Hence, with this carry trading concept, you can start forex with no deposit initially from your side.
There are certainly other avenues available as well. Also, with the money you earn from this market, you can think about investing in some other financial market and increase your profit making avenues. So, start forex trading without the deposit and make money from almost nothing.