Trading forex is hard and many new traders are lured into the world for currency speculation by social media influencers who are selling a lifestyle rather than any decent forex trading strategies.

If you’ve tried forex trading and not had much luck, here are a few alternatives that can help you scratch that trading itch, but come with the added benefit of being what I would call easier than betting on the price of currencies.

Alternatives to trading forex

  • Index trading – a bit easier because it’s based on the fundamental values of the companies it consists of. Also slightly less volatile.
  • Commodities trading – pegged to a single commodity like Gold or Oil. Still good news flow, but very volatile
  • Stock Trading – basically taking a bet on a single company – loads to choose from and with a huge amount of research available. The stocks in the top indices are the less volatile with the best liquidity.
  • Fixed income investing for income – buying bonds and gilts to receive income from coupons – low risk and relatively low reward. Unless you buy junk bonds well below par in which case the risk and reward increase significantly.
  • Dividend investing – buying shares with high dividend yields to receive income from the dividends. A bit riskier than bond investing, but there is capital upside (and downside) to consider.
  • Options trading – you can trade options on almost anything. If you are buying you pay your premium and that is your max loss on the option (can be more if you are delivered on). If you are selling loses are unlimited so watch out.
  • Cryptocurrency trading – the highest risk of trading as cryptocurrencies are about as volatile as they come with a price purely dependent on investor demand.
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