If you are looking for ways to improve your finances, investing is certainly something worth thinking about. The right kind of investment done well can offer a much better return than your spare money simply sitting in a savings account. One market that many people in the UK are starting to look at now is forex. This is the biggest financial market on the planet and sees trillions traded each day.
Investors here choose currency pairs to trade and try to predict whether the price of the pair will go up or down. If you plan to dip your toe into the forex market, you just need an internet connection and some starting capital. You would also need to sign up with a reputable online broker to trade with. Doing your research here first is key so that the broker you pick is a decent one – this AvaTrade review gives an idea of what to look for.
Of course, choosing which currency pairs to trade is also important. But which are the best for new investors to try?
You will find the US dollar in many FX pairs as it is such a major global currency. When combined with the euro, it is a good place to start for new traders. As the euro is also an important global currency, this pair has good stability and liquidity. This means that you will have no trouble finding trading opportunities but should not get overwhelmed by rampant instability. The bid-ask spread is usually low on this pair, which helps in terms of trading costs.