Profitable Trading At Forex Without Risks – Myth Or Reality?
Working in the foreign exchange market, a trader expects to get a profit, but he can only dream of guarantees. Certainly, each trading system has benefits and drawbacks, but in the vast majority of cases all experienced traders take the view that there is no risk-free trading. We will try to understand this issue.
Any trader, who works in the Forex market, wants to earn as much as possible, and without risks. How real is safe Forex trading? Starting any business, you should always understand that there is a certain risk. It does not matter what you trade – currency or raw materials, the danger of losing everything is always there. Even if you make a deposit into a bank account, no one will give you a full guarantee, because there is a possibility that the bank will go bankrupt.
One shall understand that there are no options where you are always in the black, and stock trading is no exception. However, many beginners take it wrong. Most of them see Forex as a roulette and believe that you just have to play (full truth about Forex). Many people make bets hoping for good luck. This approach is fraught with a high probability of loss. Many disappointed traders leave negative reviews about Forex, but the blame lies entirely on themselves. The risk for the trader must be reasonable. You should think about each step in advance, set real goals and leave greed aside.
Risk decreasing ways
First, you shall prepare carefully for each transaction. Here, the investor needs to use all the tools at his disposal: technical and fundamental analysis, price charts, and indicator signals. Use the principle of diversification of funds, according to which trades are held on several currency instruments, and the trader uses different strategies.
Hedging will also help to reduce risks. This term implies the opening of trading positions in two directions at once. This method is often used when there is a strong volatility in the market and sharp price jumps are expected. This is more than a reliable way of trading, but the size of the profit will be small. According to this method, you need to be able to close the order in time, so that the profit is constantly growing.
The trader can use the opportunities of the trading terminal, which allows limiting the probable losses. In this regard, there is a stop loss that limits the drawdown. If the quotes turn around and go in the wrong direction, then as soon as the level of stop loss is reached, the deal will be closed automatically.
You can use the advice of professional analysts. Every Forex broker has an analytical department that provides analytics in free access. Select a few major companies and read their analytics to monitor the accuracy of the Forex signals. For example, the analytical department of AMarkets has been making accurate forecasts for several years. They come out every day, and you only need some time in the morning to read them and conclude, whether it is worth or not to trade today. Some brokers offer paid signals, they are more accurate, but they are not up to us, because we want to start trading at minimal cost.
Brokers’ offers with a risk-free transaction
Usually inexperienced newcomers have losses at the beginning of the trading. That`s why many companies offer risk-free trading. The trading firm protects the player’s transactions from losses, and if they appear, it compensates them. Thanks to such transactions, there is a very low risk of loss.
So, let us list a number of trading firms that have this type of transactions.
The first in the list is the broker Olymp trade, which offers the following: all clients with VIP status can take advantage of risk-free transactions. To get VIP-status a trader must have at least $1000.
The next is FiNMAX dealing center that offers customers only one transaction without risk. It is available to all clients, but can only be the first one. The size of the deposit can reach $1000, and if the investor’s forecast is wrong, the amount will automatically return to his account. You should fulfill only one condition: the amount of the transaction cannot exceed the one that specified in the rules. You can use it on any type of account. There are no restrictions for profit withdrawal.
Company Migesco offers an interesting option – «no deposit transaction» that allows traders to earn without risk to capital, because losses on insured transactions will be returned to the client. The client chooses how many trades he will save from losses.
Grand Capital has another offer. Traders can trade risk-free all day long. In case of loss, all the money will be returned to the client. Note that you can use this action once a month, while you choose the day on which the action will be active. All losses will be returned to you in the form of bonuses. To withdraw money the volume of your trades is supposed to exceed the bonus amount 40 times.
Trading without seed capital
To protect your capital, you can try your hand at the real market without cash investments. You will experience all the charm of a real account, on the one hand, and fully save your money, on the other hand. Use the broker’s money for this purpose – bonuses, promotions, contests, as a result you can get a prize in the form of money that can be withdrawn or traded. For example, AMarkets offers such opportunity and gives $10 for each invited friend. All new clients of the company will receive a 25% trading bonus for each deposit within 1 month from $100 or the equivalent of this amount in another currency.
Let us consider another company. The broker Forexstart that immediately creates an account on which you will find $100. To get it you need only to pass a simple registration.
By the way, there is another real way to get money into the account without making a deposit into it. On Internet, you can find many Forex forums that can pay you for writing the posts. To be precise, they transfer the money to the trading account of a particular broker. After writing a dozen articles, you will receive a start-up capital to start your trading activity.
Demo account tournament
Another way to fund your account without investments is to participate in a broker contest on a demo account. For example, Finmax clients (website) have the opportunity to take part in tournaments on demo accounts and not just participate, but also win cash prizes. Everyone can participate in this competition and win real money without making a deposit into the account. You can either withdraw money or use it in trading.
Company Alpari hosts the tournament «Virtual reality», where the traders compete on demo accounts for 11 weeks. The prize for the first place is impressive and reaches $2500. The broker provides 15 prizes.
LiteForex broker holds a similar competition called «Best of the best». They hold the competition every month, and there are five prizes. The prize for the first place is $4000.
We gave an example of only three brokers, in fact, tournaments and similar promotions have a dozen companies. There are a few more options for risk-free trading
Affiliate programs. In this way, you can make good money on Forex without much difficulty. You do not need your own Investments, and participation in various activities is not required. It is only necessary to involve new potential clients for the broker. If there is a thematic site, it is possible to carry out the correct attraction and earn money.
Again, we will give an example of the company AMarkets that has increased the affiliate bonus 8 times and now gives you the opportunity to get an additional bonus of up to $4000! Just think – $4000 to become a partner of the company and start to search for clients for a broker. You can even never think of trading again!
No deposit bonus
Another way to keep your money perfectly safe is to use a no deposit bonus. The dealing centers offer this bonus to attract new customers who can immediately start trading not on demo, but on a real account. This offer is often valid only once. To get the bonus, you need to register and verify your personal data. The dealing centers do not offer bonuses free of charge, and you can withdraw them if you fulfill a number of requirements. Each broker has its own requirements.
For example, Grand Capital (website) has a no deposit bonus of 25%. You can use the received money on a real account or withdraw them. The bonus can be used only once, the money can remain on the client’s account for six months.
Company InstaForex also offers a bonus that you can get after registration. You can withdraw your earnings after making transactions for 25 lots. Every new client can get $1000 STARTUP bonus. It is available for USD accounts, with the exception of cent accounts. To get the right to withdraw profit, you need to earn 10% of the total amount, and then make a deposit into your account in an amount equivalent to profit.
Broker Alpari (website) has developed a loyalty program for its clients. The program is based on the points that the investor accumulates and then exchange them for real money. If Alpari Cashback had a motto, it would be like: «More points, more money». You can use money to trade or convert into cash. To earn points a trader must actively trade on a demo account and participate in Alpari contests.
Secured trading – working with demo-account
There is another option that can be very useful for beginners. AMarkets make the offer, and it is an effective Forex trading on a demo account. This account will help a trader to acquire trading skills, learn the market, use a variety of tools, work out strategies, study indicators, etc. Work on the demo account will help you to get ready for real trading.
Forex without investments is an attractive option, but do not think that you can get free benefits. The dealing center is not engaged in charity and if it offers any rewards, then it pursues the benefit. Investing in Forex without an initial deposit is attractive because there are no risks. However, it is very difficult to earn and even if you get something to earn from a broker, it will be a small amount.
Trading at your own funds
Here is always a risk, although you can reduce it by conducting a quiet, non-aggressive trade. Certainly, it is good to be able to understand the nuances of the markets, to spend time on analytics and reading the necessary literature.
You can start with a small account to get the hang of it. In this case, it will be enough to make deposits into the account from 30 to 50 dollars and conduct trades with a minimum volume. Do not chase the profit, remember, your first and main task is to learn how to trade in the real market.