The forex industry is booming. Figures show that forex trading's daily turnover rose to $6.9bn by the end of 2019, an increase from the $5.06bn and $5.3bn of 2018 and 2017. Various events worldwide are conspiring to make the forex industry one of the most heavily charged and one that looks set to prove fruitful for those who have already embarked on forex trading. Not only can savvy traders make money daily with their short-term positions and their reading of the markets and global economy, but there are many ways that you can make money in less obvious ways in the forex market. What are some of the less obvious ways to make money in the forex market?

Arbitrage Opportunities

Arbitrage is a simple concept when it comes to trading. Arbitrage, when it comes to forex, means that you buy and sell currency pairs when there are pricing inefficiencies in the short window. The reason the window is short is that when many traders begin doing this, they will end up closing the inefficiencies. To trade like this, you need to have access to real-time information. Here is an example to help outline how arbitrage works: let's say the exchange rates for currency pairs EUR/USD, EUR/GBP, GBP/USD are 1.1, 0.7, and 1.6 respectively. If you bought €10,000 for $11,000, you could then sell the euros for £7,000. Then, you could buy around $11,200 for the GBP. You would then be $200 up.

Carry Trades

Carry trading refers to purchasing a high-interest currency against a low-interest currency. Each day you hold the trade, you will be paid the interest differences between the two currencies, provided you are trading in a positive direction. For instance, when trading EUR/USD, if the EUR has a 5% interest rate and the USD a 2% interest rate and you make a EUR/USD trade, you will be paid the 3% difference. While a small figure, this can often add up over time. So, these carry trades could make you money on the side of the large trades and currency pairs that you might think of conducting in forex.

Become a Trading Signals Provider

Another less obvious way of making money from forex is through becoming a trading signals provider. Simply put, a trading signals provider gives calls to buy or sell on a particular currency pair, so that those using it can make a profit - or at least not make a loss. There are many forex trading signal providers, some with a lot more experience than others, and some with greater success rates than others. Becoming one comes down to understanding the forex market and finding a formula that has proven results for making successful currency trades. Then, you can set yourself up as a trading signals provider and help others begin their forex journeys, for a small fee or cut of the profit.  

Referral Bonuses

Another method of making money with forex also comes down to developing yourself as an established forex trader. Once you become somewhat professional and knowledgeable about the industry, you can then impart this knowledge and experience onto others. A refer a friend forex programme allows you to suggest your friends to embark on their forex journey with you. As a reward for your referral, once they begin their journey and make their trades, you will receive a cut. Not only does this help you widen your network in the forex industry, but it means that you will receive a bonus for doing so.

The forex industry is gaining more traction, especially as people are realising that you don't need to be a financial whizz to get involved. There are many platforms and resources for beginners to take advantage of the industry. You could study real-time information in order to take advantage of arbitrage opportunities and to make carry trades. You could position yourself as an expert and become a trading signals provider. Or you could suggest friends to join the same platforms that you use, meaning you will receive a bonus for the referral. The forex industry is constantly growing and developing and there are plenty of ways in which you can get involved with it.