Introduction

Is Forex Trading a viable side hustle idea?

If there is anything the last few years taught us, it is that having a side hustle can be invaluable.

When COVID came on the scene, many people’s primary income was affected. Some people lost their jobs altogether, while others took significant pay cuts.

Yet, those with a side hustle were much better positioned to make it through the challenging times.

A side hustle is more than just a second stream of income. It could eventually replace your full-time job, give you more flexibility to reduce the hours you work at your day job, give you more options, or help you achieve financial independence earlier.

Forex Trading is, without a doubt, one of the best side hustle opportunities there is.

For those prepared to learn the Forex Trading basics, a whole new world of possibilities opens.

In this article, we will explore Forex Trading as a side hustle and present six compelling reasons why it is the ultimate side hustle.

Flexibility of Location

One of the key ‘selling points’ of Forex Trading as a side hustle is the flexibility it offers, specifically flexibility of location.

In other words, it is a side hustle that can be done from anywhere, provided you have a computer and an internet connection.

The digital nomad lifestyle has become increasingly popular, especially with many companies moving to a more remote/hybrid work model. Therefore, choosing where to live is no longer limited to where you work.

Remote Trading is possible with Forex – all that is required is a Forex Trading setup, which is just a laptop/computer and access to trading software.

Many dream of living the digital nomad lifestyle, and while it may not be easy to attain, Forex Trading is one avenue that opens the pathway to being able to earn income from anywhere in the world.

24-Hour Market Accessibility

Not only is Forex Trading flexible in terms of where you can trade from, but it is also completely flexible in terms of when you can trade.

The Forex Market offers round-the-clock trading as it is open 24 hours a day – making it the perfect side hustle to do before or after your day job.

There is no need to give up your existing day job to learn Forex trading, as it can be done outside of working hours.

Furthermore, because the Forex Market is a truly global market, it can be traded in any time zone. Whether you are in the United States or on the other side of the world does not matter.

It must, however, be noted that although the Forex Market trades 24 hours a day, there are preferred times to trade:

The U.S./London markets overlap between 8 AM and noon (EST), which has the heaviest trading volume.

Furthermore, Sydney/Tokyo markets overlap between 2 AM and 4 AM and are less volatile than the U.S./London overlap. However, they still offer good trading opportunities.

In summary, the accessibility of when Forex can be traded is another big reason Forex trading is the ultimate side hustle.

Learning Flexibility

Just as there is no window of limitation to trading Forex, there is also no limitation on when you can learn Forex.

The internet is filled with material on Forex education, including online trading courses making after-hours learning as simple as can be.

Therefore, you can go as fast or slow as you want in your Forex Trading journey.

Abundance of Resources

Due to the popularity of Forex Trading, there is no shortage of Forex Trading resources. These include educational materials in the form of blogs, articles, and videos.

Online trading communities have also become more popular, offering aspiring Forex Traders online communities to learn from.

When selecting trading resources to learn from, try to find people with proven results over an extended period.

There is also an abundance of quality resources for those looking for them.

Personalized Trading Styles

Another reason why Forex Trading is the ultimate side hustle is because the trading style can be customized to suit each individual person.

This means you can adapt your trading to suit your lifestyle. This includes how much time you have to trade and when you are able to trade.

It could also mean developing a trading style that aligns with your own personal risk tolerance and unique goals, ensuring that your risk management is good.

Forex Trading strategies can be uniquely developed and tailored around your lifestyle, unlike many other side hustles, which can sometimes feel like a burden.

Low Capital Requirement

Compared to other financial markets, such as equities and futures, Forex Trading has a relatively low capital requirement.

Therefore, Forex Trading on a budget is very feasible.

There are several reasons why Forex Trading with a relatively small amount of capital is possible:

• Leverage

Forex Brokers typically offer traders leverage. This enables Forex Traders to control a much larger position than they would otherwise be able to.

For example, a trader with access to 100:1 leverage will be able to control a $100,000 position with only $1,000 of capital.

• Commission-free trading

Most Forex Brokers do not charge a commission fee for each trade. They typically make their money through the spread – which is the difference between the buy and sell prices.

This further reduces the cost for traders with access to very little capital.

• Micro and Mini Accounts

Many Forex Brokers offer micro and mini accounts, further reducing the capital requirement to trade Forex.

For example, a micro account may have lot sizes of 1,000 units of the base currency – as opposed to 1000,000 units for a standard lot.

The low capital requirement makes it much more accessible for beginners to learn the ropes in Forex Trading.

Furthermore, it can help mitigate risk, as new traders don’t have to put too much capital at risk from the ‘get-go.’

Conclusion

As we have seen, Forex Trading is a very viable side hustle idea.

There are many things that make it one of the best side hustle ideas, including the flexibility it offers, the low capital requirement, and the ability to tailor it to your own lifestyle and risk profile.

However, as with any other side hustle, it takes time and dedication to see it through the ‘growing pains’ into a stable stream of secondary income, which could perhaps eventually replace your full-time job.