Getting Money for Forex Investing
For many individuals their plans for Forex investing become snagged. Why? It’s because they simply do not have enough money to cover opening a Forex account. With most Forex accounts requiring a minimum investment of $2,500, many just won’t be able to afford taking advantage of the wonders the Forex marketplace has to offer. Yet, just because a person doesn’t have this amount in their bank account doesn’t mean they should necessarily give up their dreams of Forex investing. Other alternatives such as credit cards, refinancing and extreme budgeting can still assist in getting a person the Forex account they are looking for.
A high-limit credit card is probably the easiest financial option a person has access to. If a person has good to average credit, it shouldn’t be too hard getting a credit card with at least $2,500. However, they shouldn’t take just any credit card. It is best if they invest in what are known as zero percent APR credit cards. These are credit cards that do not charge any interest for a certain period of time.
This period of time ranges from 6 months to two years. Anyway, the reason why a person should consider using this type of credit card for Forex investing is simple. If they can get a return that supersedes their initial investment, as long as they apply the return to the credit card balance before the zero percent APR is up, they won’t have to worry about having a monthly bill.
Another way an investor can finance their Forex investing is by refinancing. This is when a person takes a second mortgage out on their home loan. The second mortgage usually charges a higher amount than the first, but it tends to offer a better interest rate and most importantly, cash back. For example, if a person gets a refinancing mortgage that is $250,000 but their property is only worth $200,000, they’ll be able to pocket the $50,000 difference. Granted, these costs will be added into the mortgage payment, but it is still not bad, especially since it’s very hard trying to get such a large lump sum of money.
Finally, there’s extreme budgeting. For extreme budgeting a person needs to evaluate any extraneous expenses they are ‘wasting’ their money on. An example could be eating out instead of taking one’s lunch. That right there is a savings of $100 a month, assuming a person is eating lunch that costs $5 a day. In two and a half years, just making that minor sacrifice could allow a person enough to start Forex trading. Even more money could be saved if a person cuts other expenses such as cable television and cell phone bills. If cable must be had, a person can get basic cable. For cell phones one can invest in a prepaid phone. Doing these things could up that $100 a month to $150, $200 or maybe even more.
In conclusion, if a person doesn’t mind using a credit card, refinancing mortgage or extreme budgeting, it is possible to save up enough money to cover a traditional Forex account. Yet, if these means fail or are not desired, a person can consider mini Forex trading, where they would only need a couple hundred dollars to initiate a Forex transaction.