The role of Forex currencies in your Personal Finance wealth
How to SAVE YOUR MONEY online and offline. Cash, Investment, Trading… — What options are available?
All of us are indirect participants in the Forex market, and the big banks are also directly involved in this market.
If you live in a country where the national currency is the US dollar, Euro, British pound … — you’re absolut fine. Often there are cases when there is an extreme or planned need to exchange these currencies: traveling, business trip or for investment purposes.
There is another side of the coin, when due to personal passive position or lack of understanding of economic processes in our country we lose part of our money savings.
As an example, the rich Viking homeland — Sweden.
Staying in this Scandinavian country for work since 2012, I bought the US dollar for an average price of 7.00. Now in 2024, a dollar is worth over 10 Swedish kroner. — More than 30% depreciation of the national currency.
The chart below shows NO uptrend in the Swedish krona. On the contrary — krona slowly Falling:
This is a friendly example, but there are scenarios that are extremely aggressive (war, natural disasters…)
So what are the forex investing and trading options? From my experience, there are the following opportunities:
- Buy cash USD, EUR, GBP… — You won’t earn much, but you won’t lose much either. Currency you save at home under your pillow, but it’s more reliable in a bank.
- Numismatics. — Investments in “old” money. Buying up old banknotes and coins. This market is growing and yields about 10% per annum.
- Futures trading at Interactive Brokers (the choice of professional traders). This also involves making trades using leverage.
- Forex trading: 1. Forex broker CFD (contract for difference), 2. Broker NDD (buy/sell orders are forwarded to the interbank market), 3. Broker ECN (directly connects buy and sell orders). Buying and selling with leverage is high risk!
- Trading/Gambling at a Binary Options broker. Just like in a casino, you will lose money over time.
This list is in descending order of reliability. The 1, 2 items are the most understandable and reliable, but make your research for serious decisions.
I hope you have learned something new regarding the currencies.
Be sure to share your experience in the comments.
