DIY FOREX: FOR AND AGAINST

PLUSES

• Up-front funds to kick-start an account with an online platform vary from $1 to $10,000.
• Developed markets regulators are looking at new measures to help protect small traders.
• Stop/loss measures can be used to limit downside.
• Most platforms offer simulated practice accounts to get used to trading.

NEGATIVES

• Foreign exchange is essentially a form of gambling.
• Estimates that only 20 per cent of forex trades are profitable.
• Regulators trying to come to terms with a system that was designed for hedging programs for big companies and professional investors being used by retail investors.
• Forex deals are typically leveraged, increasing potential profits and losses.

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