There is only one sure thing in forex trading. Loss. It is the only sure thing that every open position will eventually be closed with a loss. So how to make money in forex without actually trading it? You definitely can earn a lot of money in forex trading without opening any single position. Here are just two examples of how to make money in forex without actually trading. Every beginner with a goal to trade forex successfully needs to read the below.
1. Be a forex broker
To be a forex broker means that you earn money by connecting sellers and buyers. In the old days, when computers were just in Star Trek, brokers needed only a pencil, paper, and phone.
Brokers called from early morning till late afternoon to dealers in banks, trying to find just two with opposite ideas and wishes. And there is hidden the forex broker profit.
The small fraction of trade amount, but without any risk (of course, if we ignore counterparty risk) would be the broker’s fee.
Counterparty risk means, that you still risk that your counterparty will not pay your fees. However, if you work with regulated banks, your risk is pretty low.
Volatility is a friend of every broker
The only thing you need as a broker is volatility. You will praise volatility, you will enjoy any unexpected event which will move markets up or down.
You will not care about direction market moves, and you will care just about if the move is large enough. More volatility, more happy and wealthy you will be.
You will hate holidays and low liquidity. You will hate non-eventful days, stable markets, and peace in the world.
Your day will be much nicer when FED unexpectedly raises rates or decreases them. No matter what FED does, it will definitely help that it surprises forex markets.
What you need as a broker
You needed just a pen, pencil and phone long ago. Nowadays you will need probably a robust IT system and a lot of money.
The competition between brokers is pretty strong. All of them invest a lot in IT infrastructure and marketing.
Fees are going down, and you need more significant amounts to earn the same money as year or two ago. However, still, you do not have any open positions.
You can sleep peacefully. There is no possibility that you come to the office in the morning and all your positions will be in a deep loss.
2. Be a consultant
You do not want to trade your own money, do you? Trading other people’s money can be more pleasant in case you lose them. Be a consultant means that you just give advice and take your fees before anything goes wrong.
You will not risk your money. Great, isn’t it?
What do you need as a consultant?
The primary thing in the consultancy business is reputation. Without a reputation, nobody will hire you.
To earn a reputation is not easy. Basically, you can be a trader who finished his career and your trade log speaks for itself.
The second possible way is to make yourself visible. You have to comment in discussions about forex, write articles about it, do not be afraid telling others what they should do last week.
And you will see that some fool will like your advice and hires you. You know that prediction of future on forex is impossible, so let your partners pay your fees before any of your opinions materialize.
Is it possible to make money in forex without actually trading?
Yes, it is possible to make money in forex without actually trading. We showed you two possible ways how you can win at the forex every time.
We are sure there are other ways we did not mention. But even as a consultant or a broker, you will have to work hard to earn anything.