The Five Different Ways to Invest in the Forex Trading

With the spike in popularity of online investments, an increasing number of investors and individuals looking to make money are turning towards the currencies exchange. The Forex exchange market, one of the largest in the world, handles transactions exceeding over $5 trillion a day. The sheer size and the vast promise it holds has caused people in the Philippines to sit up and take notice of the online trading world. 

However, while many want to enter the Forex market, there’s one thing that holds them back – the ‘how’ factor. How to get started? How should I choose the right option for my needs? How can I make profits? Instead of losing yourself in the maze of these questions, start getting answers and engage in Forex trading in the Philippines.

Here are the five different ways you can make your entry into the market:

#1) Open an account with a broker

One of the easiest ways to get started is to engage in spot trading a currency pair. For this, you’ll have to open a trading account with a Forex broker in the Philippines. Once you open the account, you receive an online trading platform, wherein you can receive live price feeds and open/close positions in real time. If you’re new, it’s advisable to make use of the resources and leverage provided by WesternFX and its feature-rich account.

#2) Foreign currency futures

This type of trading includes a futures contract wherein the currency exchange rate is considered the underlying asset and involves buying or selling a specified amount of currency at a pre-determined date and price. While the degree of leverage is lower than the spot market, it is nevertheless highly regulated and is a viable option for those who are not comfortable with spot Forex trading.

#3) Currency Options

A foreign currency option gives the holder a right to engage in Forex exchange transactions but is not an obligation. An upfront cost called a premium has to be paid to obtain this right and entitles the holder to exchange money in one currency into another at a pre-agreed exchange rate. Also, the inter-bank deposit rates and the current spot price of the currency pair play a role in determining the option’s price.

#4) ETFs and ETNs

ETFs (Exchange-traded funds) can be associated with a single currency or a group and are deployed in cash deposits. For ETFs that use futures, some amount of extra cash is invested in bonds. ETNs (Exchange traded notes) are debt instruments wherein price fluctuates based on the changes in the underlying exchange rate.

#5) Foreign currency time deposit

In this, traders benefit from the interest as well as any appreciation in the price of the currency. While foreign currency time deposits may seem like a lucrative investment opportunity due to the high-interest rates involved in online trading, in some cases, any depreciation brought about in the value may negate the returns earned.

Invest wisely with WesternFX

Whether you want to trade in Forex futures, options or engage in spot trading, WesternFX, considered one of the best Forex brokers in the Philippines, can guide you through it. Start your journey on the FX platform with us today.

3 powerful Forex trading strategy that can make you money

A simple online search for ‘Forex trading strategies’ is bound to yield hundreds and thousands of results. Every trader has a unique plan to approaching the Forex trading market in the Philippines.  To a beginner, the sheer volume of available resources, articles, and the knowledge database might seem intimidating. But there’s an easier way! Instead of trying everything and achieving nothing, stick to strategies that actually work.

Here are the top three Forex trading strategies in order of their increasing complexity that can prove useful in providing a profitable outcome:

#1) The 40 pips pull back scalping strategy

It’s easily the simplest and something just about anyone could do – and that includes beginners. Here’s how it works: you need to observe the market closely and see if a currency pair moves 40 pips in any one direction from the opening.  Now, all you need to do is peg your opening in the opposite direction. Why? Because the FX platform cannot move in a single direction for long and has to take a turn. With this strategy, you can gain a minimum of up to 15 to 20 pips.

#2) Buy above and sell below the MA

If you’re accustomed to the Forex trading world, you might already be aware of Moving Averages. You can adopt a better than usual approach to using MA. If the candle is above the moving average in the chart, make a buy, and if it’s below it, make a sell. You also need to prescribe the appropriate Profit Target and the Stop Loss so that you don’t end up making impulsive decisions and can limit your losses if any.

#3)  Fibonacci Forex trading strategy

This is one of the most complex Forex trading strategies used by traders in the Philippines, yet can prove useful if mastered. Find the most recent swing high and swing low, naming it A and B. Find appropriate AB swings and set Fibonacci in both directions. Watch the retracement from AB swing and wait for it to unfold. Then you need to observe the following:

•    Price must reach 5 WMA (Weighted Moving Average)

•    It must touch at least 0.382 Fibonacci retracement level

•    Price should not close above (uptrend) /below (downtrend) of 0.618 retracement line.

If these criteria are met, enter the trade long if the candle is closed above 5 WMA and short if it’s closed below

It might take some time to master these strategies and make money from the online trading in the Philippines. It’s not advisable to put real money on the line and instead trade with a Forex demo account, practice, refine, improve and only then use a live account. WesternFX, an award-winning Forex broker, provides the best platform for it!