Did you know that you can make an insane amount of money trading in the financial markets, particularly the forex market? The internet is replete with stories of individuals who made their fortunes from trading the global currency markets.
While many people familiar with the global currency market believe that you need to have a considerable amount of money to kick off currency trading. We have read stories of people who began trading the global currency market with a meager amount and successfully grew their accounts.
Notable figures like George Soros made the bulk of their fortunes trading currencies, and you too can start with as little as $50. Today, we will show you the best pairs to invest $50.
Think we are bluffing? Well, read on to learn how to invest $50 in currency trading.
Three things to know before start:
- FX investing is an art where you can invest in currency pairs and make a profit.
- FX investing does not have to be long-term; you may choose to use swing and positional strategies to invest.
- Investing in major currency pairs gives more profit due to its fast movement and high volatility.
The best pairs for investing $50
If you have $50 you’d like to invest in currency trading, you’ll be happy to read further as we have put together a list of some of the most profitable trading pairs that will give you reasonable returns on your investments.
Pair 1: EUR/USD
Why is it worth investing in EUR/USD?
Without mincing words, this pair is arguably the most traded currency pair globally. And just so you know, EUR/USD makes up more than one-third of the total trade volume in the FX market. This is mainly because of the immense size as well as transparency of the US and EU economies. Also, high liquidity is another reason why we favor this pair over others.
How much could you have earned if you invested $50 in EUR/USD 1 year ago?
In terms of performance, EUR/USD has been on an upward trajectory. Let’s say, for instance; you invested $50 in this pair a year ago when the price was at 1.15902; you’d be in profit currently, as the current price is hovering around 1.18264. From your entry which was 1.15909, to the current market price of 1.18264, the market has moved by almost 236 pips.
So let’s assume you entered the market with a 0.01 nano lot size, using a $50 account, you’d have made a profit of $23.6. And just so you know, you can increase your lot size for more profit. Nevertheless, doing so comes with added risk, as the market may not go in your favor.
Pair 2: USD/JPY
Why is it worth investing in USD/JPY?
Another perfect pair you can explore is the USD/JPY forex pair. This pair accounts for nearly 17% of transactions in the global currency market. And sure enough, the pair enjoys impressive liquidity.
We love USD/JPY because it is among three of the most liquid FX pairs. Plus, it enjoys low spreads. Also, this pair is among the three most volatile instruments. Unfortunately, we don’t recommend the USD/JPY pair for beginner traders because of its high volatility.
How much could you have earned if you invested $50 in USDJPY 1 year ago?
When it comes to performance, USD/JPY has performed tremendously well in the last year. Say, for instance, you invested $50 when the price was 102.849 a year ago; you’ll be in some significant profit right now as the current market price of this pair is hovering at 109.946.
In terms of pip value, the market has moved by almost 709 pips in your favor. Using your $50 and trading with a nano lot size of 0.01, you’d be up by nearly $64.49 profit. That is over 100% interest.
Pair 3: GBP/USD
Why is it worth investing in GBPUSD?
There are many reasons why we would recommend investing $50 in the GBP/USD currency pair. For starters, this pair accounts for nearly 12% of the total trading volume in the global currency market.
And like other pairs we have featured so far, the GBP/USD pair possesses an insane degree of volatility and price instability. Plus, it is among the most traded currency pairs, with most professionals focused on short-term strategies.
If you’re looking to kick off your trading journey or would like to invest in a profitable FX pair, this is the one for you.
How much could you have earned if you invested $50 in GBP/USD 1 year ago?
In terms of performance, GBP/USD has outperformed two of the pairs we have earlier highlighted. If you invested $50 in this pair precisely one year ago, when the price was at 1.29971, you’d be enjoying some parabolic profit right now as the pair is currently trading at 1.39287.
In terms of pip movement, GBP/USD has increased by over 1052 pips, which is insane. Let’s say you entered the market with a nano lot of 0.01; you’d be up by almost $105.20 profit.
And this is just profit for a nano lot of 0.01. If you were to increase your lot size to just 0.02, we would be talking double the profit highlighted above.
That said, keep in mind that increasing your profit comes with considerable risk. We suggest sticking to the smallest lot size, especially given the size of your account.
Pros and cons
|Worth to use
|Worth to getaway
|Profit in a short time
In FX investing, you can make profits in a short period of time, since this market is highly liquid.
|News can be unpredictable
News events create high volatility which can stop you out if you are holding trades.
|Invest a small amount
You don’t need large amounts of capital to invest in forex, as we explained, even $50 can give you a good amount of profit if managed properly.
Investing using leverage can significantly inflate your losses if your invested trade goes in the opposite direction.
|Time and location flexible
Forex investing is possible from any device as long as you have a stable internet connection. The market is also accessible 24 hours a day, five days a week.
High spreads can eat away your profits, especially during low liquidity, brokers increase spreads to make money.
From what you must have learned so far, you don’t need a large account to make some decent profit in the FX market, especially if you’re in it for the long term. With as little as $50, you can make decent returns on your investment by picking the correct currency pairs and holding it patiently for, let’s say, one year.
For people who don’t want to go through the hassles of picking the correct currency pairs, today’s article has provided you with some of the best pairs and why.
But before you get too excited, let us also add that trading FX comes with considerable risks. Sometimes, the market may go against you. So before you invest $50 in any pair, make sure you have analyzed the pair properly. Also, manage your risk smartly, so you don’t end up over-leveraging your account.