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.
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