There is little denying the significance of forex trading. Each time we need to travel internationally, we need to use a foreign currency. For that matter, every time we transact internationally, a currency exchange takes place. In an increasingly globalised world, business with foreign countries is a norm rather than an exception. It is little wonder then, that forex trading is one of the most active markets in the world. Some USD 6.6 trillion worth of transactions are estimated to take place every day in the market.
But taking up forex trading as an income source, whether a side hustle or a main one, is a different activity altogether. The crucial difference is that a trader does not buy or sell currency to fulfil any other obligation, like travel or international business. A trader engages in it for the sole motive of profiting from currency fluctuations.
The value of a currency fluctuates all the time, depending on the geopolitics and the economy of the country in question. But if a trader is able to accurately assess where the currency is headed, they can profit from it. On the downside, if their assessment proves inaccurate, they can also lose money.
Different laws across countries
Seen from a trader’s perspective, a currency is like any other asset class then. And indeed, it is treated as such across countries. In the US and the UK, it is a thriving route to creating an income. Not only can you trade in spot forex markets, but there are futures and options contracts to trade on available as well.
But in other countries like India, Belgium and France, forex trading is banned. In yet others, like South Africa, China and Egypt it is restricted. These restrictions can show up in the form of the amount of money that can be transferred to the broker. They come about to ensure that no money laundering takes place.
There are also different cultural norms regarding forex trading. For instance, the Sharia Islamic Law, does not allow receiving an interest. It believes that giving should be exactly for that purpose, to give. But not get something back in return. This means that a swap, which involves a charge on a trader’s deposit money to transfer the position over time, is prohibited. However, Islamic countries can and do allow forex trading in other forms.
Forex trading in Egypt
In fact, in some Islamic countries like Egypt, currency trading is getting popular. Advancements in technology is one of the key reasons for this. Internet is not only becoming more widespread, but also getting speedier. With smartphones also now the go-to phones to use, trading apps can be downloaded in minutes.
It is a regulated market in Egypt, though, coming under the supervision of the Financial Regulatory Authority. It places restrictions on both the trading amount and the balance amount in your forex trading amount, though. So, when starting currency trading in the country, it would be wise to consider these regulations.
The easiest way to do so is by ensuring that you open a brokerage account, which will be able to guide you through the process. Opening a forex account in Egypt through a broker is not hard, really. On the contrary, it is quite easy. Some brokers say that they can get your account up and running in as little as five minutes!
Practices to follow when opening an account
The practices to follow when opening a forex account in Egypt, or for that matter anywhere else in the world, are straightforward. Here are some basics:
- Internet advantage: To be a serious currency trader, you need to ensure reliable and fast internet. This can help taking advantage of all the quick currency movements that happen through the day.
- Regulated broker: The next step is to find a good broker to trade with. Normally, all good brokers will be regulated by the authorities. Stay clear of those that are not, since they might not be trustworthy. And you do not want to sink your funds into a fly-by-night operator.
- Open an account: All you need to now is open an account with them. You can then transfer a balance you want to trade in, as long as it is within legal limits, to the account. And your forex trading journey has started.
Get started now
It is evident that currency trading can be tried out by anyone today. It is not always unrestricted, though. While some countries allow for completely relaxed trading, others have restrictions and yet others have barred it. Regulated trading exists in countries like Egypt. So long as you adhere to regulations regarding the maximum tradeable and transferable amounts, you should be good to go. The only other point to consider is sensitivities regarding cultural norms, like the Sharia law. Chances are, though that if you go through a high-quality broker, they will guide you through the process.
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