Complex Made Simple

Learn before you earn: A guided approach to online trading

In an interview with AMEinfo, XTB MENA LTD, one of the largest stock exchange-listed FX & CFD brokers in the world, shared their expertise about the rise and prospects of online forex/stock trading

Many people have turned to online trading during the lockdown Traders need to follow the latest market news and trends, examine technical signs, and apply good risk management Understand the markets and all their intricacies including progress with each day, with each trade, profit, and loss

An AMEinfo exclusive

In an interview with AMEinfo, XTB MENA LTD, one of the largest stock exchange-listed FX & CFD brokers in the world, shared their expertise about the rise and prospects of online forex/stock trading, particularly within the current digital age and the outbreak of COVID-19.

We asked Farah Mourad, Senior Market Analyst at XTB MENA, the below questions:

1- Can you provide an overview of online trading/forex industry in recent years? 

Investment appetite has been on the rise in the region over the past years, and it started with the internet’s impact on both retailers and investors’ hunger for new investment opportunities. Access to news sources and market insights, trading and risk management courses, low fees, and fast executions further opened the door towards new markets to start an investment journey instantly.

The online trading world has witnessed a whole new hype post-COVID-19, which brought high volatility to financial and commodity markets coupled with interest rate cuts, making trading on financial instruments very attractive for many investors. XTB Group witnessed a record-breaking number of new clients reaching 112,000 compared to less than 37,000 a year earlier, a growth of over 200%. Transaction volumes in contract for differences (CFD) instruments increased from 1.6 million to 3.2 million lots year-on-year.  

2- How can consumers earn a second source of income from the comfort of their homes?

Many people have turned to online trading during the lockdown, however, there were some individual investors who did not have the proper capital allocation, risk management, time, or the temperament to make sustainable profits with day trading.  Nonetheless, the advantages of online trading are visible and attractive when having real-time monitoring and execution, flexibility, low fees, capital control, and equal access to information and data.

3- Can you shed light on some of the richest or most successful online traders in the Middle East?

It would be misleading to pick one or a list without looking into a trader’s or entity’s trading and risk management strategies. The richest and the most successful titles don’t necessarily go hand-in-hand. You can have zero trading experience, take a huge risk, and manage to strike a 500% profit in one day, but I wouldn’t call that successful trading. Yet you can follow the latest market news and trends, examine technical signs, apply good risk management, and set a clear reasonable target, but still not manage to make a huge profit. That’s what I call a successful approach for online trading.

Personally, I think the most successful online traders are the ones who admit their faults quicker than others, master their emotions, and apply the best risk management to their trading strategies.

4- How does XTB MENA set itself apart in educating local traders?

Financial education has become an increasingly important factor in the region. All information, data, and news are out there, and that is the fascinating thing about this type of investment because it provides equal data access to everyone. But this also creates challenges for investors: How will they filter this huge bundle of data? And what should they make out of it? This is a gap which we are working on fulfilling. When it comes to market analysis and financial education, we want to give regional traders access to professional analytical tools such as online courses, market updates, performance statistics, chart analysis, and much more.

Moreover, traders can access all of XTB MENA’s online trading tools through our one-stop-shop “Xstation” platform, which has been carefully designed to help traders extract deeper and fact-based insights on recent news and market updates.

5- What are your top tips on trading online?

I would like to start with the expression ‘the market is your teacher, always be a student.’ Personally, I think online trading is a continuous learning process. As an online trader, it’s about understanding the markets and all their intricacies including progress with each day, each trade, each profit, and loss. Whether a novice trader wanting to step into the world of online trading or a professional one seeking to expand your investment portfolios, I encourage all to benefit from “XTB Academy”, which provides online trading courses, sessions, and tutorials, bifurcated by the level of expertise and focused topics.

All of these educational sessions will eventually help candidates acquire relevant knowledge to make well-informed trading decisions for the future.

XTB Disclaimer:

XTB MENA Limited provides an execution-only service. Any opinions, analyses, prices, or other content in this press release does not contain and should not be construed as containing investment advice or an investment recommendation. The content in this opinion piece does not take into account your level of understanding, investment objectives, financial situation, or any other particular needs. Any decision to act on the information contained in this news content is entirely at the readers’ own discretion. Readers are solely responsible for such decisions.