The number of private investors in Forex is growing steadily, but most investors still have some doubts about investing in Forex. We will try to explain here what Forex has to offer investors and what part Forex can play within an investment portfolio.
Investors invest assets with the goal to acquire returns. They can choose from a wide variety of investment products. There are many different investment categories such as shares, bonds, property and liquid funds. Forex as an investment category is becoming increasingly popular, and is sometimes also referred to as ‘alternative investment’. Alternatives are investment products that offer an alternative to the above-mentioned traditional investment categories. Other examples of alternatives are: commodities, hedge funds and managed futures.
Compared to other investment categories, investing in Forex has a number of advantages. It is important to be aware of the fact that the prospect of high returns also comes with a risk. Therefore an investment portfolio should never consist entirely of Forex investments. We will also have a look at the possibilities for investors to trade in Forex themselves.