Embarking on live forex trading, whether after successful demo practice or anticipating market shifts, requires careful management of your funding. To make your capital go further, consider these three simple yet effective strategies when funding your trading account:
1. Leverage Credit Card Rewards:
Many forex brokers facilitate fee-free deposits via credit cards. If your deposit is categorized as a purchase (it’s always best to confirm this with your broker), you can significantly benefit by using a rewards-optimized credit card. This strategy earns you points or miles for every dollar spent. To potentially amplify these rewards, inquire if your broker allows withdrawals back to your credit card within the card’s interest-free period (typically 30-60 days). If so, you can strategically withdraw funds before the period ends and then redeposit them, essentially earning rewards twice on the same capital. Repeat this process carefully to maximize your benefit.
2. Opt for Online Money Remitters:
When your broker doesn’t accept credit/debit card payments, or when fees are excessive, consider using an online money transfer company rather than a traditional bank wire transfer. These companies often offer more competitive exchange rates and significantly lower fees. Reputable online remitters typically process transfers within 24 hours at rates considerably less (approximately 80%) than standard banks. While established remitters may charge slightly higher fees, they often provide a broader range of transfer channels. Prioritize using regulated and well-reviewed businesses to ensure the security of your funds.
3. Secure Rebates and Discounts on Spreads:
Companies like Cashbackforex have established a strong reputation for providing value to traders. Many brokers partner with these types of services, allowing them to rebate a portion of the spread or Introducing Broker (IB) commission back to the trader. While these companies act as middlemen, they are free to use, as their profit comes from a small percentage of the rebate. Although Cashbackforex is a popular choice, exploring other options like cashbackcloud and globegain can help you secure the best available rebate offers.
Conclusion:
Margin trading in forex can be challenging. Therefore, it’s crucial to be aware of and minimize fees that diminish your capital. Look for transparent brokers that avoid hidden costs and always try to minimize foreign exchange fees where possible. By adopting these simple funding strategies, you can enhance the effectiveness of your trading capital. Good luck!
We hope you have enjoyed this article, for more articles like this, tips for improving your trading, be sure to check our education articles.
Want to trade forex? Here’s a list of forex brokers to check out plus analysis and predictions for major currencies.