DIY FOREX: FOR AND AGAINST
Published 23 August 2012 04:54
- 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.
- 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.