Living in Spain and need a hobby or source of Income? be a Forex Trader

Forex

There are loosely two types of expats that move to Spain. The first type is those that have money  and don’t need to work. If you fall into this category, chances are you still need a hobby or activity to fill up your day. The second type is those that need to continue to earn money to fund the expat lifestyle. Regardless which type you fall into, trading with Forex CFDs is an option that can fulfil both needs.

The good thing about trading CFDs is that you can do this in English, removing any language issues of living in Spain. It is also easily accessible, requiring only a laptop and an internet connection, meaning you can trade from the sunny Costa Del Sol. But, best of all the entry point to become a Forex CFD trader is low, anyone can gain the skills to become a forex trader.

The forex market is the world’s largest and most liquid market and was valued at $2.4 quadrillion in 2020. With a market this size, there is an abundance of opportunities to learn CFDs as a hobby and also to monetise your trading skills.

If you are new to CFD trading, it’s vital to explore your options and find a broker that suits your trading needs. Justin Grossbard, director of CompareForexBrokers explains that “before you start trading forex, you should take some time to compare what the top brokers are offering. Four areas I recommend taking a deep dive into include pricing, broker features, regulation, and trading platforms”.

Pricing

The main cost involved when trading forex is the difference between the bid and ask prices for the currency pair, known as the spread. You want to choose a broker that has tight spreads so you don’t spend more than you need to when you trade.

Two main forex trading accounts and pricing structures are widely available to retail traders. The first is a commission-free standard account where the quoted spread includes the broker’s compensation. The second account and pricing structure provides retail traders with an institutional grade trading environment where you can access tighter spreads while paying a commission fee based on trade volume.

Regulation

While competitive pricing is crucial for successful trading strategies, you should also take into account a broker’s regulatory oversight. Choosing a regulated broker ensures your funds are safe and trading conditions are fair.

Conversely, if you trade with a broker licensed by offshore regulators, expect far fewer safeguards and investor protections.

Assuming you are in Europe, any european regulator such as the UK’s Financial Conduct Authority (FCA), Cyprus’s Securities and Exchange Commission (CySEC) or Comisión Nacional del Mercado de Valores (CNMV) for Spain will be acceptable.

Trading Platforms

If you are going to be trading for hours on end, you will want a trading platform that you are comfortable using and has all the features you will need. There’s a wide range of trading platforms available that suit different styles and experience levels.  So take advantage of demo period most brokers make available to test the platform.

Three mainstream platforms, being MetaTrader 4 (MT4), MetaTrader 5 (MT5) and cTrader, have kept their spot as the best software for many years and are seen as the gold standard internationally.  This is largely due to the trading platform’s ability to automate trading using algorithmic trading strategies, access to advanced analysis tools, and fast execution. Thanks to its increasing popularity, many brokers now allow various social-copy trading tools to be integrated with the mainstream platforms.

Certain brokers offer proprietary trading platforms which have proprietary options such as guaranteed stop loss orders (GSLOs) or unique risk management tools.

Broker Features

Assuming you are new to trading, it can be beneficial to choose a broker that has good customer service so you can receive help when you need it. Another thing to look for is if the brokers includes forex trading education. Many brokers include videos, webinars and guides that are free for their clients.

Forex CFD trading is for all

Successful trading is a skill so you do risk making losses. This is especially so since you are using a leveraged instrument which is why you need to ensure you do your research and build your skills and trade responsibly.

Choosing a broker with good spreads, education, regulation and trading platform will set you well on your way to building a really handy hobby or career. The great thing is that you do this from anywhere, whether you are on the sunny sands of the Spanish coast or mountains of Sierra Nevada.

Leave a Comment

Your email address will not be published. Required fields are marked *