Trading in foreign currencies abroad is an option for the most experienced. It is not recommended for people who have no experience in risking their money and are not willing to lose.
The first thing that is recommended is to risk money that is willing to lose and in the words of Castrillón, it is not small amounts, if you open an account of only $ 50 dollars it is possible to lose them in a single operation. For starters, it is better to do it with amounts higher than $ 1,000 dollars. Due to its high volatility, it is considered a high risk alternative. So if you are not tolerant of risk, consider other options.
“The dynamics of the FOREX is simple to understand at first sight through the trading platforms, but deep down there are a series of variables that make this over-the-counter (OTC) market a complex world. This dichotomy is the one that must be kept in mind from the beginning in order to avoid bad experiences in terms of profitability (capital losses), “says Castrillón.
Regarding its operation, this consists of a variety of quotes for buying and selling pairs of currencies (currencies) 24 hours a day, with the opening day on Sunday (New Zealand) and closing on Fridays (United States) in 5 pm schedule (USAr). The participants in this market are central banks, commercial banks, international funds, institutional investors, brokers and dealers and individual investors.
Negotiations are made through electronic platforms facilitated by the broker of choice.
For what type of investor is it adequate?
Even though it is easy to access this market through a FOREX account, since it can be done in minutes, it is recommended mainly for individuals who have previous experience in other financial markets (stocks, bonds, futures, options), hand in hand with an adequate “trading or negotiation plan”.
This market is ideal for high risk profiles, with minimal risk aversion. It is important to keep in mind that about 90% of the individuals who access this market lose all of the initial funds in a short period of time.
Can it be done by any natural person or what are the requirements?
Taking into account all the hype and marketing globally, any natural person could perform operations in FOREX, even from their mobile phone, tablet or PC. The dilemma is how prepared is each individual who accesses an account to assume the swings of an efficient market.
Is Forex legal in all countries?
In most countries, financial investments abroad are permitted, and the regular channel for acquiring foreign currency, usually United States of America dollars, is made through the IMC’s (Intermediaries of the foreign exchange market: commercial banks. , mortgage banks, brokerage firms, finance companies, financial corporations, Bancoldex, and financial cooperatives, among others) Until now, the entire operation is legal and transparent, and its purpose is to fund the FOREX account abroad with the broker of your choice.
Although some countries are still legislating or creating the legal norms for this activity to comply with the required legal and commercial standards, this is because the proceeds of this activity are used to legalize ill-gotten money or proceeds from illicit activities. which is known as money laundering or money laundering.
But we can say with certainty that it is legal to operate in the Forex market, even in most countries banks accept funds from this millionaire market, as well as operate as a means of acquiring or improving their income capital.
What is not allowed by law is:
In regulating this activity or ways to generate income through Forex Trading governments regulate or in their initiative to do everything legal for citizens have created some rules that need to be taken into account so that no person has a problem with the competent authorities , this to create promotion of access to trading platforms and / or registration of foreign exchange operations without prior authorization from the Financial Superintendence of Colombia.
Intermediate and attract resources from the public in order to manage or invest them (Only IMC’s are authorized)
Representation offices of a broker exclusively for the promotion of trading platforms and FOREX accounts to residents may be made only with prior authorization from the Financial Superintendence of Colombia or through the figure of a correspondent contract with a Stock Exchange Commission or Financial Corporation.
If you want to know more about the subject, we invite you to see this video that we made in this arithup and this blog that is aimed at giving information related to how to generate income with forex, currency trading and crinptomoendas.