Recently, many friends have asked me whether trading forex can make money. Honestly, I’ve been playing myself over the past few years, and my experience tells me that the key really lies in choosing the right method and platform; otherwise, even the best market conditions are useless.

There are mainly three ways to trade forex: the lowest threshold is at bank counters for currency exchange, but the handling fees are super expensive, so it’s not suitable for investment. The method I use more often is a bank foreign currency account, where you can exchange anytime 24 hours a day. Although the profit isn’t much, the risk is relatively low, making it suitable for long-term holding. If you want to seriously make money, forex margin trading is the right way—using small amounts of money to operate large positions, making profits from both rises and falls, but this double-edged sword must be used carefully.

Talking about the risks of forex trading methods, leverage is really the easiest place to get trapped. When I first started, I was tempted by high leverage, but one market reversal wiped me out. My current advice is that beginners should absolutely not be greedy; use 1-2x leverage to practice, and after getting familiar with market fluctuations, consider increasing positions. Never go all-in; controlling the margin per trade at 3-5% of your total funds is a wise approach.

It took me quite a bit of learning to realize that choosing the right platform is crucial. You must find a legitimate institution regulated by the government to be at ease. Local reputable Taiwanese platforms have guaranteed credibility, and international big platforms regulated by authorities like the UK FCA or Australian ASIC are also good. The priority is fund safety. The platforms I use now all have demo account features, and I strongly recommend practicing for a while before trading with real money, because the psychological pressure between demo trading and real trading is completely different.

Choosing currency pairs for forex trading is also very particular. I started with major pairs like EUR/USD and USD/JPY, which have high liquidity and trading volume, making market trends more stable and easier to predict. Beginners shouldn’t rush to challenge obscure currencies; first, master the familiar currency pairs.

Finally, I want to remind everyone that forex trading seems simple, but mental adjustment is the most important. Don’t play with a gambler’s mentality; always invest with spare money. I’ve seen too many people go all-in impulsively and end up losing everything. Surviving in the forex market is more important than making quick money—this is the experience I’ve gained through time and money.