Loan to work on Forex?

Most beginners believe that to make money on Forex you need a lot of money, and the more, the better. Surprisingly, they are absolutely right on this issue.

The main reason for the high risk of trading on the stock exchange is leverage, which is used to increase transaction volumes.

This approach significantly weakens the position, making it unstable to the slightest exchange rate fluctuations. That is, the greater the trader’s net worth, the less leverage he can use, the lower the risk of losing everything as a result of one unsuccessful transaction.

To make significant money, you need to have at least $5,000, this will allow you to conduct quiet trading with the least risk.

But not all traders find this amount affordable, and the question arises about credit funds. To take or not to take a loan to work on Forex?

The answer to this question is quite simple - if for three or more months you have been trading with a profit, during this time you have not lost more than one deposit, and the average monthly trading profitability is more than 15% - definitely take it.

The main thing is that the profit earned is enough to cover the interest on the loan, that is, if you took out a loan of $5,000, you will have to pay $400 for it monthly, of course, you should earn more.

To achieve success, you need a clearly thought-out loan repayment plan, and when filling out an application, you should never indicate that the money is needed for trading on the stock exchange; banks are quite reluctant to give loans for risky projects.

An alternative to a loan can be to attract investor money; to do this, you should register as a manager in a management company; such a service is available at almost any Forex brokerage company .
In this case, you will be able to use investors’ money for part of the profit received. It is clear that in this case the risk is minimal, but to attract clients you need a good account history and a decent amount on deposit.

To ensure the last condition, you can use the same loan. At one time, I myself started trading with credit funds, gradually paying off the loan and increasing the deposit; of course, I had to abandon risky strategies for this period of work.