Forex Trading as Mutual Fund?

Eline

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We often hear that forex trading can be done like the stock trading. And in fact not much of a difference between the two other than the item that is being traded. So here my question is that if we can do the mutual fund from the stock. Is it possible that there are mutual funds of the currency pairs and the fund house? I mean that can be another good idea to invest and earn passively?
 

Ureka

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The mutual fund and the Forex market and two distinct things, they are not the same, Forex is still relatively simple, but to invest in mutual funds you will need someone to tutor you on it.
 
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George10640

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I think it can be very difficult because every pair has got its own characteristics just like any stock.So for currency pairs as it is more risky trading them , you will be exposing yourself too much if you trade all pairs with a small capital or even with Lower time frames.
 

WhiteHouse

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Forex trading is not the same as stock trading, stock trading is too complex, and you need extensive research on it.
With forex simple basics are needed to be known and then as you trade you learn more
 

Lyrrex

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Forex trading is entirely different from stocks trading, but may have a little trading similarities, though forex had higher financial risks associated with it.
 

George10640

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Forex trading is entirely different from stocks trading, but may have a little trading similarities, though forex had higher financial risks associated with it.
I think both are very risky but it depends on how you prevent yourself from high risk exposure.You can always stick to goals when trading either of them.
 

Nomad

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Forex trading and mutual funds are entirely different concepts. Forex trading is buying and selling of foreign currencies. Whereas mutual fund is an investment on different commodities and assets. Mutual funds is comparatively less risky.
 

Alexandoy

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I think the mutual fund for stocks is the creation of the stock market to invigorate the trading. Giving a venue for small time investors, the mutual fund is the answer. With forex I guess it can also be possible if there is a group that will start up the idea and push it to reality. A mutual fund like in a pension is not a guarantee of earnings. It is just pooling the money of the investors and investing the big sum in a safe investment - forex is not that safe.
 

Adeyoola7

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A mutual fund is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities such as stocks, bonds, money market instruments, and other assets. Mutual funds are operated by professional money managers, who allocate the fund's assets and attempt to produce capital gains or income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus.
Forex is a portmanteau of foreign currency exchange. Foreign exchange is the process of changing one currency into another currency for a variety of reasons, usually for commerce, trading, or tourism. According to the 2016 triennial report from the Bank for International Settlements (a global bank for national central banks), the average was more than $5.1 trillion in daily forex trading volume.
 

Richard92

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When you say forex trading as mutual fund that's what's it really means, forex trading is all about give and take, it also all about buying and selling of foreign currencies, you buy currencies when their prices are low and sell when it is high, but if you sell when it is low then you run at a loss. It is mutual funds because they make money from you if you loss and you make from them when you gain
 

BrolySSJ

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In my opinion when it comes to these two pairs, they are quite different in how they operate and how much knowledge you need in order to be able to successfully trade them to make a profit. I think that some concepts of the two of them can be applied to one another because they are generic in Trading, but in my opinion stock and forex trading is on two different sides of the spectrum.
 

Highflyer

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In forex trading, you buy a large amount of foreign currency just like you would buy a stock, bond, or mutual fund. Instead of trying to earn a profit through the value of that investment going up, you hope the U.S. dollar value of that currency will move in the direction you're hoping for (up or down).Please keep in mind that forex trading involves a high risk of loss. ... But, risks are involved in any financial trade or investment. When you do currency market trading, limit the risks by never doing trading based on borrowed funds and never stretch yourself. These are the only two major risks.
 
K

kayode10

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Those mutual funds company also invest in forex trading. They just collect money from people to invest in forex without disclosing what they invest in. I would advise you to go into forex trading is you are good with technical reading. Find an expert in your city to train you host to trade with good strategy.
 

Ebuka Stephen

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We'll to my understanding forex trading and mutual funds are totally different, mutual funds relies on many investors to make up a pool of money, while forex trading is the buying and selling of currencies . both forex trading and mutual funds involves risk
 

Ralphjoe

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Forex trading and mutual fund are very different form of investment, They cannot be done together like trading mutual funds pay or stock but their similarities stems from the fact that both have great risk in them.
Mutual funds is a more pragmatic method to make money than forex trading, as it involves many investors pulling funds together, then a company will be using their funds to invest.
 

Seun4luv

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In forex trading, you buy a large amount of foreign currency just like you would buy a stock, bond, or mutual fund. Instead of trying to earn a profit through the value of that investment going up, you hope the U.S. dollar value of that currency will move in the direction you're hoping for (up or down).
 

Nurudeen

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Forex trading isn't similar to stock trading. In forex you buy currency and resale at a high price, mind you, you can lose all your entire money in forex but with the right strategy in stock trading you can make good amount of money with your capital. All you need to know in stock trading is just technical and fundamental analysis.
 

Lyrrex

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Forex trading isn't similar to stock trading. In forex you buy currency and resale at a high price, mind you, you can lose all your entire money in forex but with the right strategy in stock trading you can make good amount of money with your capital. All you need to know in stock trading is just technical and fundamental analysis.
To me I rather prefer to trade Forex trading or crypto trading because to me that vwill be much more better for me than stock because In trading you are the one that is in control of what you are doing ,all the profits and all the loss but in the other one it is very difficult to have access to what you have buy especially if is being supervised by the government.
 

Sanusi

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Forex trading as mutual fund, In my view i think if there is mutual fund with currency i think i would have to do that. The world of forex itself is a nice investment to do because you need to look at what the market is doing.
 

Suba

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We often hear that forex trading can be done like the stock trading. And in fact not much of a difference between the two other than the item that is being traded. So here my question is that if we can do the mutual fund from the stock. Is it possible that there are mutual funds of the currency pairs and the fund house? I mean that can be another good idea to invest and earn passively?
One type of mutual fund is money market mutual funds where you can invest in short-term certificates, are safe and earn higher interest than bank deposits. That is why many people misunderstand that investing in money market mutual funds is the same as trading forex. Also you ask if we can do the mutual fund from the stock. You have to understand the types of mutual funds, one of which is equity funds, so the mutual fund investment manager places your investment in stocks. Your forek trading must be active so it can't be used as passive income.
 
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