There are a few choices when it comes to forex that individual traders can take. The simplest way is to buy a currency pair on the spot market and hold it. For example, you purchase EUR in the USD/EUR pair. If the counter currency appreciates, you can sell it for your base currency and take home a profit.

One exciting aspect of forex trading is the possibility of making a profit through interest rate differentials. Central banks worldwide set differing interest rates that provide investment opportunities for forex traders. By exchanging your cash and depositing it in a foreign bank, it’s possible to earn more money than leaving your funds at home. 

There are extra costs, however, including remittance fees, banking charges, and differing tax regimes. You should consider all the possible additional costs to make your strategies work. Arbitrage opportunities and gains are often minimal, so your margins will be tight. An unexpected fee can wipe out all your expected gains.