Senior Market Analyst for Exness, a global brokerage firm, Terence Hove has urged people to understand forex trading and not treat it as a get rich quick mechanism.
He was speaking at the side-lines of a forex trading seminar in the city on Saturday meant to equip the Zimbabwean market with trading knowledge and offer them a platform such as Exness to trade.
“The get rich quick myth surrounding forex has led to the downfall of many. Others look at it as a side hustle and that has given rise to many scammers packaging and selling people some false dreams that has led to the negative perceptions that characterise the practice,” he said.
He urged those interested to invest time, acquire vast knowledge and practice due diligence so as to manage losses associated with the venture.
“The first step is to trade via a reputable broker who facilitates transactions for you. Research on the credibility of your broker as some are crooks and most of this information is available on the internet.
Exness is one such multi asset international regulated broker as we have licences in most countries for example in Africa and even in Britain. That makes it easier for traders who trade through us as their market place to hold us accountable.
One also needs to also invest time to be able to attain the right kind of knowledge. Exness holds webinars and seminars where we make our clients understand certain forces driving the market for example why gold prices go up and down.
There are aspects that affect the movement of price, information and all that. Therefore the more you become aware of this, the more you understand what you are trading and why you are trading.”
Rofhiwa Bruce Nthulane, founder of Euporiafx, a retail trading strategy company based in South Africa who was the guest and presenter along with Qiniso Dlamini at the seminar said brokers were the most important aspect in the forex trading business.
“I do not trade in companies where I do not have insiders since I am bound to lose. Many have lost money because they did not have inside knowledge of company affairs. Brokers such as Exness are my inside men who will tell me of market trends and when to jump ship if a company is sinking.”
The forex market is the largest financial market in the world in terms of trading volume, liquidity and value. The worldwide 2022 forex market is worth $2,409,000,000 ($2.409 quadrillion). $6.6 trillion on average every day is traded on foreign exchange markets.
The majority of forex trading is facilitated in five major financial hubs around the world, with 79% of forex trading occurring in the United Kingdom, United States, Hong Kong, Singapore and Japan. The UK is by far the largest forex trading centre, contributing to 43.1% of the world’s foreign exchange turnover.
There is a reason why forex is the largest market in the world as it has the potential for high gains and fast returns. Moreover, it has convenient market hours and it often takes less money to get started than it does to trade stocks.
In Zimbabwe, the forex trade has become an alternative income earner leading to the event manager, organiser, forex trader and a pastor Lovejoy Ngorima hosting the seminar as a way to equip the jobless youths in his church with life skills.
“Virtually all the young people in my church own smart phones. However most of them are unemployed and this is my way of equipping them with essential skills since they can trade in forex using their phones and earn their own money.”
Government has also recognised the benefits of the popular scheme resulting in it undertaking efforts to formalise its operations in the country. The Zimbabwe Stock Exchange recently announcing that it is working on introducing foreign trading on the Victoria Falls Stock Exchange (VFEX).