Forex trading has been growing rapidly in Pakistan in the last couple of years, with hundreds of traders joining in daily. However, there are always questions that new traders have in mind before getting in on the action of forex trading in Islam.

Namely, these questions primarily revolve around if forex trading is legal in Pakistan and if it’s religiously approved according to Islamic law. This means that most Pakistani traders want to know if forex trading is legal according to Sharia law before they start trading.

So, in this article, we will be covering all these important questions that Pakistani traders may have in mind. In addition to this, we will also be discussing the difference between unregulated and regulated brokers, so you’ll know which direction to go in before taking your first steps in forex.

Is Forex Trading Legal in Pakistan?

Let’s start with the most basic question—is it legal? The answer to that is yes, forex trading is totally legal in Pakistan.

There are essentially no limits to forex trading in Pakistan. Of course, there has been some action taken by the Securities and Exchange Commission of Pakistan (SECP) to reduce the risk of financial fraud and money laundering in the forex market. So far, we’ve covered only the legal aspect of forex trading in Pakistan.

Is Forex Trading Legal According to Islamic Law?

Although forex is legal according to Sharia law, there is a more complicated answer to this question. According to Islamic law, forex trading is halal as long as you keep a few important and morally-acceptable practices in mind.

First of all, it is essential that you only use an interest-free forex account. As it is well known, interest is haram in Islam, and there is no exception to that rule. As such, it’s essential to understand how Pakistan taxes forex trades.

Secondly, it is important that you avoid using online forex trading as a gambling tool. This means that you should only invest after you’ve become somewhat knowledgeable in the field, so you’re not gambling.

So, as long as these basic conditions of trading forex are met, you can trade with peace of mind knowing that it is halal.

How Available Is Forex Trading In Pakistan?

Forex trading is prevalent in Pakistan, with many open market tools and insightful forex resources available for Pakistanis to choose from.

Namely, there are online brokers that are trusted by millions of people, and there are other trading platforms that accommodate specific types of trading. This means that there is an abundance of options available for trading in Pakistan, and if one looks for a specific broker for their needs, they can easily find one that is trusted by many.

Regulated Forex Brokers in Pakistan

You might be asking, what is the difference between regulated and unregulated brokers?

Well, the difference is quite simple: regulated brokers are the ones that are registered with a regulatory body in their country.

This means that the registered brokers in Pakistan are approved by the Securities and Exchange Commission of Pakistan (SECP).

It’s well-known that there are risks of going for unregulated brokers, as they can be scammers or market makers. It is always advisable to go with a registered broker for safe trading, whether you plan on trading forex or other assets like Pakistan stocks.

There are many registered and legal forex brokers in Pakistan. Let’s take a look at two of them.

• FXTM Widely regarded as one of the best forex brokers in Pakistan.
• AvaTrade This forex & stock trading platform has a reputation for being great for beginners.

It is safe to say that there is no industry or business sector that cannot be improved by artificial intelligence and machine learning. In fact, these technologies have been on the rise for the past few years and quickly found their place in almost every segment of our everyday lives. The benefits that automation offers are undeniable, so it is not surprising that AI and machine learning have started to play a major role in forex trading as well.

Namely, the Forex market is one of the fastest-growing markets in the world right now. It averages around $6 trillion worth of trades on a daily basis, and its total worth exceeds $2 quadrillion. About 90% of the successful traders on Forex take advantage of the benefits that AI and machine learning can offer. They use these technologies to analyze immense amounts of data quickly and accurately. Additionally, AI can help them track real-time data and automate many repetitive trading processes.

What Does AI Offer Traders and Investors?

Here are some of the most useful AI technologies that traders and investors make use of:

Pattern Recognition

There are platforms that rely on AI that traders use to look for patterns in several trading markets in real-time. In combination with machine learning and great computing power, investors can analyze massive amounts of data and make wiser decisions with their investments.

Speech Recognition

One of the most popular uses of AI is its speech recognition capability. Traders use it to help them search for important market insights in tons of financial data and conversions.

Predictive Models

By using AI algorithms and pattern recognition, traders can use AI-powered platforms to create predictive models. With their help, they have a better chance at estimating the stock rankings and predicting prices.

Automation

Some AI trading platforms can even allow you to fully automate every minor task when trading. AI tools can analyze the potential trades and create a trading strategy themselves through the help of machine learning. Then, they place orders and take action accordingly. By using machine learning, these platforms can drastically improve their trading strategy over time.

How to Best Utilize AI for the Forex Markets

Generally, there are two main methods that can help you make the most of AI technology on the Forex market:

1. Automatically Building a Predictive Model

To create a better trading strategy, traders can use machine learning to build a predictive program. The AI will automatically include all of the top features in the model to improve your forex trading strategy.

2. Process of Feature Importance Ranking

By using machine learning, you can decide which two variables are the most important for your trading strategy—with no coding being required. As an example, let us say that volatility is the main variable that determines your profit. You can use AI to add a “volatility filter” to your strategy and improve it by not making trades when the market is slow.

The Best AI Forex Trading Software

eToro is a trading platform that is where popular among Forex traders. It offers the CopyTrader feature that allows you to make the same trades as other users, without paying an extra fee. Learn more by reading our eToro review.

Capital.com is a trading program that can provide you with tons of valuable insights into trading performance in real-time. Powered by the latest AI technology, it can analyze massive chunks of data (forex dataset for machine learning) and provide you with the visibility needed to improve your trading strategy. Learn more by reading our Capital.com review.

These are just two of the best brokers and platforms that offer AI forex trading software. If you’re interested in learning more, consider reading about the top 5 forex auto trading brokers or visit our forex technical analysis pages.

Why Traders Should Use AI and Machine Learning for Forex Trades

The vast majority of successful forex traders already depend on AI to reduce the risk factor in their trades. They use bots and different kinds of AI forex trading programs to automate many of the complex processes that take valuable time to perform. By relying on algorithmic trading, they can stay ahead of the competition and have the upper hand over those who do not use AI for their trades.

If you are a forex trader, then you should definitely consider making use of AI and machine learning to improve your trading strategy. The AI-powered trading platforms offer advantages that you can never achieve without utilizing these tools. Through machine learning techniques, you can make daily trend predictions and recognize patterns in multiple markets simultaneously. Moreover, you can create predictive models by including the top or most important features that will allow you to make use of software for consistent profits.

Need more help with your forex trading journey? Take a look at our free forex signals or weekly forex forecast.

Handling volatility and mitigating risk is something that all forex traders are looking forward to. Nobody wants to have to look at their positions 24/7 and have minor heart attacks each time their account goes in the red. Of course, there can never be trading without any risk, but over the years, there have been a couple of strategies set up to mitigate and minimize risk—one of which is high probability trading.

High probability trading is an approach initially conceptualized by the well-known forex expert, Robert Miner, who made the term in his book “High Probability Trading Strategies”. In it, Miner explains important terms like trading confluence, while also teaching you about high probability trading with important strategies for high probability trading—like the step-index strategy. Namely, defining high probability would go something like “recognizing trading opportunities with minimal risk while also ensuring profit”.

There are, however, more details to be said about high probability trading. Continue reading to learn more.

Best Setups of High Probability Trading for Forex

Although the sound of it appears quite promising, high probability trading isn’t applicable in every situation—in fact, there are a couple of setups that are widely regarded as being the best ones for high probability trading in forex

Pre-breakout Set Up

This is one of the simplest setups that has had a high success rate for years on end, and will probably continue to do so in the years to come. The instructions are clear: monitor the chart closely and pay attention to every little detail. At the first clear sign of a breakout, put your position and determine a profit goal. Consider checking out Robert Miner’s setups book to learn more about pre-breakouts and how to properly utilize them.

Trading Reversals

The trading reversal is a slightly more complicated setup, though it’s been quite a profitable one. Take the following situation as an example: let’s say a forex pair has been in a consistent upward trend and a couple of indicators (like the Moving Average, signals, and cd) state that it will remain that way. The moment the chart dips and the price falls, you immediately put a long position and wait until the previous high is reached.

Failure Test

Failure tests rely on determining key support levels and waiting for them to get broken – whether they are breaks on an upward or downward trend. Support levels get broken all the time in a volatile market, so failure tests are something you can make relatively good use of if you get the hang of them. Failure tests are also theoretically explained in plenty of books, magazines, and other educational material provided by the top brokers for forex trading.

What Strategies Should You Use for High Probability Trading?

Once you’ve learned what high probability trading is and why it’s good, you need to learn more about the best strategies for beginner forex traders:

News Trading

News trading is a relatively simple concept to grasp, and it doesn’t require knowing too much about the market upfront. Namely, a news trading strategy means that you’ll put your positions based on the recent world news as well as market expectations, and make a quick judgment on how to trade. It could well be a contender for the most profitable trading strategy as long as you get the right news at the right time. An important point to note is that you have to have immediate access to world news—otherwise, you’ll miss key trading opportunities and lose out on money.

Additionally, consider taking a look at our weekly forex forecast to help you out.

Swing Trading

Swing trading strategies are a slightly more advanced approach, being best suited for intermediate traders who know a thing or two about the market. Namely, this trading strategy encompasses trading on both sides of the market, taking advantage of the market oscillations as prices swing up and down. It requires opening more positions than traditional trading strategies, as you’re always waiting to sell on the next rise, or buy on the next low. Keep in mind that it’s not the most accurate forex strategy, but it could be quite profitable if it’s in the right hands.

Trend Trading

Trend trading largely relies on using technical analysis and specific indicators to determine the probable trend of the market. This means that in a bull market (rising prices) you’ll put long positions and acquire profit at the first sign of the market slowing down. It’s a strategy old as the market itself and it’s often regarded as the highest probability options strategy. However, the biggest problem traders have with this strategy is that it requires paying a lot of attention and accurately determining the market trend.

Is High Probability Trading Worth a Try?

So, we’ve summarized what high probability trading encompasses, why it’s good, and what are some of the top forex trading strategies you can look to implement in your trading. So, is high probability trading worth a try? Our verdict would say that yes, high probability trading is worth a try, especially if you’re a beginner without too much market knowledge.

It’s a well-known fact that over 70-80% of forex traders lose money in their first 12 months of trading—this doesn’t have to be true for you. Even though high probability trading probably won’t make you a millionaire overnight, it’s one of the safest approaches you can take—especially as a beginner. Taking it slow will probably be one of the best choices you’ll make when trading forex, and there’s a low probability you’ll ever lose too much money. Lastly, consider checking out our list of top brokers for forex trading to make sure you take your first steps in the right direction.

Just like in every other part of the world, forex trading is gaining more and more popularity in South Africa as new people discover it. The reasons behind its popularity are simple—you can earn money from anywhere in the world, as long as you have the necessary knowledge and skill to do so. Another reason why it’s so attractive is that there’s no limit on the money you could earn – you aren’t limited by time, and you don’t have to do any active work to get a profit.

However, with the rise of its popularity, scammers and fraudsters have found ways to exploit forex traders—especially beginner and intermediate ones. Traders from South Africa have also been a target of such scams, so it’s expected that they’d like to protect themselves in the future. If you want to learn more about the history of forex scams in South Africa and how to protect yourself from them, continue reading.

Common Forex Scams in South Africa

Expert Advisor (EA) and Robot Scams

The benefits of automated tools like trading algorithms and robots are apparent, but this has also given scammers an incentive to exploit them. An EA scammer would advertise the “obvious” benefits of using a trading robot and give you an estimate of how much money you could earn.

Trading Signal Scams

Providers of trading signals give out suggestions and ideas to forex traders, helping them take advantage of the market circumstances. Although there are plenty of legitimate signal providers, there are more scammers that “guarantee” an accuracy of over 90% of their signals. The truth is that no one, not even the best traders of all time can guarantee such high returns consistently. Be on the lookout for fake forex traders South Africa.

Price Manipulation

This is a scam usually done by illegitimate brokers that go out of their way to display an inaccurate price for a forex pair, stealing the difference between prices as profit. Avoiding these types of scams is really simple—just stick to the best forex brokers in SA today that have years of history behind them.

What Can You Research to Avoid Forex Scams?

Researching before taking big steps in the forex market can save you hundreds, if not thousands of dollars in the long run. The first step in the right direction starts with a good broker. If you stick to reliable brokerages and forex platforms that have been around for a decade or more, there is no way you could get scammed.

You should also take preventive measures to avoid being scammed by individual scammers, not just illegitimate brokerages. A simple rule to keep in mind is the following: “If something sounds too good to be true, it probably is”. Scammers will go out of their way to promote new “brilliant strategies”, promising you massive returns—only with the goal to steal your money and disappear without a trace.

Are All Brokers Regulated?

You’d be surprised by the number of brokers that are unregulated, essentially being unsafe. It goes without mentioning that you should stick to safe brokerages, like the ones on our list of the best forex brokers in SA. Consider avoiding the following brokerages to stay safe and scam-free:

• UFX Market
• Tradorax
• Trade-24
• NoaFX
• MaxCFD
• Porter Finance
• Prime24Trade
• Option FM

Services That Legitimate Brokers Allow With Ease

With the large number of brokers you can register at right now, it can be quite easy to fall into a trap and start trading at an illegitimate one—especially if you’re a beginner. Experienced traders, however, know what to look for when choosing a broker, which is not always true for the untrained eye. So, what should you look for? It’s simple—make sure your broker has the following features before registering there:

• Fast and seamless banking (both deposits and withdrawals).
• A range of reliable payment methods that you have used in the past and are familiar with.
• Licenses from multiple licensing bodies.
• A safety system that minimizes the chances of you getting scammed.

What Can You Do if You Have Fallen for a Brokerage Scam?

Although taking preventive measures is a lot better whenever scams are in question, sometimes it’s too late and beginners become victims of online wealth market scam attacks. The moment you suspect something is wrong, you need to immediately withdraw your cash and contact authorities. Every broker must have a licensing body behind them, so starting from there & contacting the higher-ups is a good idea. In fact, this is the easiest way to track down someone who scammed you in South Africa.

After you’ve reported the scam, make sure you specify everything in as much detail as possible. Although it’s usually not the case, there is a chance you could get your money back and press charges against the scammer. In the worst case, you’ll minimize the chances that others become victims of the scammer, and in the best case, you might succeed in getting money back after being scammed.

Need help with your forex trading journey? Consider checking out our free forex signals or weekly forex forecast.

Trading on the foreign exchange market has seen some pretty drastic changes over the years. The technological advancements of today have been revolutionary in every aspect of everyday life, and forex trading is no exception. While trading in the past was done primarily over a phone cable, the easy access to a computer and internet connection has made things much more straightforward. Traders nowadays require real-time visibility into all the necessary information to make decisions and create institutional Forex trading strategies.

Modern technology allows us to use AI tools to improve our chances in the forex market. One of the biggest game-changers in the trading market has been the introduction of algorithmic trading. By applying different techniques, traders are able to achieve high-frequency currency trading with the help of different software and programming languages like Python. These are trading systems that work with a high level of success and profitability. Even though algo trading forex on the market is not a 100% winning strategy, it does great to reduce costs and minimize the risk.

What are the 4 Types of Algorithmic Trading?

Broadly speaking, there are 4 main types of algorithmic trading that you can adopt:

• Statistical As the name says, this type relies purely on stats from historical data to learn from past experiences. Systems with statistical algo trading are always looking for opportunities in situations that have proven to be successful in the past.
• Auto-hedging This is a safer and more conservative approach whose main goal is to reduce risk rather than increase profit. It relies on investing in the opposite position of your main related asset.
• Algorithmic execution strategies These strategies are used to improve the efficiency of executing a specific trading objective. It can be anything that you want to achieve quickly and certainly like reducing the market impact or finalizing a trade.
• Direct market access It is essentially an order book that allows traders to quickly place trades. It gives them direct access and better visibility into the stock exchange with important information like prices and volumes.

While it is not considered a type, high-frequency trading is another form of algo trading. It gives the traders the ability to perform trades within milliseconds of a price change. When properly used it can be quite advantageous, though it raises a few risks on the more volatile markets.

The 3 Best Algorithmic Trading Strategies to Follow

1. Trend Following Algorithm

One of the most popular algo trading strategies is the trend following algorithm. It relies on following a forex indicator that shows trends in different parameters like price changes, channel breakouts, and average statistics. It is used by a solid percentage of forex traders as it is easy to adopt and does not require you to perform predictive analysis, which can be quite complicated to do as a beginner or intermediate trader. Consider checking out a list of the top forex automated platforms where you can make the most of this strategy.

2. Arbitrage Opportunities

In simple terms, arbitrage is investing in stocks at a low price on one market and selling them at a higher price on another. Situations like this can often be found on the forex market as well, and with this strategy, you can make the most of them. You just need to set the right currency trading algorithms in place that will automatically identify opportunities for arbitrage and place the orders when they are taking place. Brokers like AvaTrade offer educational material on trading strategies like these, read our AvaTrade review to learn more.

3. Trading Range

Also known as the mean reversion strategy, the trading range strategy is based on the idea that all assets have a normal price in normal circumstances called the “mean value”. This price periodically increases and decreases, but eventually reverts to the mean value at some point. By setting up a price range for the average value and implementing an algorithm to place orders when this value moves out of range, you can capitalize on trading this asset.

What Is the Future of Algorithmic Trading?

Algorithmic trading is currently on the rise, and yet the client expectations for it are becoming even more demanding and complex. Namely, there are a few things that can be improved and upgraded to better meet the criteria of the modern trader. Trading systems need to be able to provide more information to their clients in real-time—this way, traders will have the necessary insights to make better decisions when choosing the algorithms for a successful strategy. Additionally, by focusing on real-time information, transaction cost analyses will become significantly more practical.

Traders should have access to smart algorithms that will react to different market conditions. In order to get the information they need, traders require modern tools that rely on AI and machine learning. These modern technologies have the capability to create new parameters which can be useful to create a winning strategy and implement the best algorithms for specific market conditions. Algorithmic trading is not going away anywhere in the near future, so an increased development of AI-powered tools is to be expected in the near future.

If you need more help with your forex journey, take a look at our free daily forex signals or weekly forex forecast.

No matter how far we are from it, we’re all slowly heading towards it: retirement. Sure, you might be 30 years away, but it definitely wouldn’t hurt if you had some plan about it. With the average life expectancy increasing year by year, it means that the young and middle-aged citizens of today will have significantly more time to enjoy retirement.

Regarding the US, retirement is a hot topic. There are many ways to go about it—having a 401k plan, relying on social security, putting your money in a government investment scheme, and much more. If you’d like to learn more about retirement and specifically how much you should have before you officially retire, continue reading.

When to Start Saving for Retirement

Here’s an overt truth—the earlier you can start saving for retirement, the better you’ll be down the road, and the easier it’ll be to retire comfortably. It would also be incredibly helpful if you had at least some financial advice by your side, be it a financial advisor or a knowledgeable acquaintance. In the worst case, you should invest time to educate yourself about finance and know how to save, invest, and slowly build up your wealth.

In the best-case scenario, you should start saving in your early 20s—or whenever you start readily earning money. Of course, you probably won’t earn too much money in the early years of your career, but you have a lot more time than someone who is earning more in their 30s. When you have the benefit of years on your side, saving and investing for retirement becomes much more pleasant.

Many 20-year-olds will probably be paying off their student loans or will be managing payments for a mortgage. This doesn’t mean that you shouldn’t save for retirement though—preferably, you should be investing as much as possible and have the benefit of compound interest by your side.

How Much Money Do You Need to Retire Comfortably?

There is no precise amount that applies to everyone regarding comfortable retirement as it varies greatly depending on where you plan on retiring. This also isn’t a fixed result as the value of different currencies changes consistently, as noted in our forecasts of the USD/JPY currency pair analyses and EUR/USD currency pair analyses.

Alternatively, if you aren’t sure what these numbers mean and are interested in forex trading, read our beginner’s guide to forex trading and then get started with one of the top brokers for forex trading.

That being said, there is a simple formula to help you calculate how much you might need for retirement:

First, you must calculate your average spending. Of course, your spending will probably be a variable number, but you should calculate an average budget that’s comfortable for you with everything taken into consideration (bills, rent, mortgages, credit payments, etc.).

After having calculated this number, the best strategy to have in mind is sticking to the 4% rule, which states:

You’ll be comfortable in retirement when 4% of your total net worth is equal to the amount of money you’re spending annually.

Let’s put some numbers in mind so you can have a clearer picture. Assuming that your average annual spending is equal to $20,000, the 4% rule states that you should have $500,000 saved up. This way, your lifestyle won’t be compromised and you won’t have to cut back on spending when you’re retired, so you can live as comfortably as you’re living in your working days.

It’s worth mentioning that the 4% rule assumes that you’ll have a 5% return on your total net worth, which is a completely manageable amount to have in mind. Even investing in the S&P 500 beats that number by a huge margin, having an average return of 10% (2x of the desired amount). By spending 4% of your portfolio and having a return of 5%, you can comfortably live for 30 years after entering retirement without even touching any other income.

Tips for Saving for Retirement

As you can probably already guess from what we’ve explained above, retiring becomes a lot easier if you have invested your money and you’re enjoying the benefits that investments have to offer. For more info, read Best Investment Strategies for Your Pension Fund.

There are different ways to make saving for retirement a much easier and more manageable process, such as the following:

Roth IRA

A Roth IRA (Individual Retirement Account) is a retirement account to which you can regularly contribute as long as you’re earning an income. One of the main reasons that IRAs are so attractive is that you can withdraw the money in your account completely tax-free. There are also no age restrictions, meaning you can start whenever you feel comfortable, and there is no minimum amount you have to deposit to remain qualified. In the worst case, you can pass your Roth IRA onto your heirs, which will be a tax-free withdrawal for them.

Most IRAs allow investing in many different types of assets, including:

• Stocks (See our stock market analyses)
• ETFs
• Mutual funds
• Bonds
• Crypto (Read our latest updates on cryptocurrency)

401(k)

With a 401(k) plan, you’ll have a fixed amount that’s automatically deducted from your gross income every month. The keyword here is gross income, meaning that you’ll deposit your money directly into your retirement account without it being taxed. You can keep depositing this way until you’re at least 59 years old, or have a big health issue (like a permanent disability).

The money in your 401(k) account can be withdrawn tax-free as long as it’s a part of your contributions—keep in mind that the profits might be taxed if you decide to withdraw before retirement. Otherwise, your 401(k) account will keep growing at an average return of 3-8% per year.

Investing

In addition to government-sponsored retirement plans like the 401(k) or other IRAs, you could also consider taking your finances into your own hands and investing the money you’re earning yourself. Of course, this opens a whole new world of things to worry about: dividends, taxes, returns, losses, and much more. Taking investing into your own hands could be slightly more complicated, but also more beneficial. Consider doing your research and choosing the best option for you.

If you need extra assistance, take a look at the Best Investment Options for Senior Citizens.

Imagine retiring in Lake Como, Italy. Or what about in Paris and enjoying the cafe lifestyle as you pen the next great novel? Perhaps even on a sandy beach somewhere in Mexico.

Many people have a dream of a comfortable retirement in a foreign country, especially after spending most of their lives in the same town, state, or country, much like George Bailey from It’s a Wonderful Life.

Indeed, there are many benefits of retiring abroad, particularly as they relate to your pocketbook. If you have started late in saving for retirement, or you are concerned about outliving your equity, you probably want someplace where your money can go further. So, you could find a new retirement destination that offers you a greater quality of life, be it affordable housing or terrific healthcare.

What Do You Need to Retire Abroad?

Unfortunately, you cannot just decide to pack your bags and move to an exotic location. You need to go through a wide variety of monotonous chores that can make relocating a bit more difficult.

The first is the paperwork. You will need to perform various bureaucratic duties, including visa and residency requirements, attaining the necessary identification, and understanding the rules of foreign ownership.

The next step is finding the best city or residential property to plant roots for the next couple of decades. This could include everything from learning more about the overall climate of a specific jurisdiction you have eyed for a long time to completing an all-cash purchase for the home.

Safety is also an important consideration. You want to reside in the safest country on your list of potential nations to permanently move to.

Lastly, healthcare is something you will need to learn more about as top-notch medical care is a necessity for your elderly years. Is private insurance necessary, or will you be covered by other options? This is what you need to determine before making this giant and life-changing leap.

It’s also imperative to have enough money saved in the right assets that will never lose value, such as gold. To learn more about gold, read The Price of Gold: 4 Factors Influencing Its Change or take a look at our gold price forecasts.

The Safest Countries to Retire To

So, what are some of the safest countries in the world to retire to anyway?

Here is a list of the top five safest nations put together by William Russell:

• Austria – You will need a visa to enter, a work permit, and a residence permit.
• Canada – Apply through the Express Entry program for permanent residency.
• Denmark – Apply for a temporary residency (good for five years) before entering the country.
• Iceland – Attain a residence permit from the Directorate of Immigration before moving to the country.
• Finland – You will need to apply for a residence permit if your stay is beyond 90 days.

But why would this matter?

For one thing, when you are a senior, you are typically the target of theft. From identity theft to being robbed, elderly folks will fall victim to criminals. If a country is relatively safe, then there is a reduced risk of theft.

The other issue is that a safe country could also mean a generally stable government and economy. A nation with high crime rates can lead to economic dilapidation, social upheaval, and political crisis—none of which is a retirement dream.

That being said, some of these countries aren’t exactly the cheapest, so you better start considering the right pension fund investment strategies as soon as possible—even senior citizens can invest effectively. Or, consider moving to a cheaper country.

Cheapest Places to Retire To

So, now, in addition to safety, you also need to consider the cost and quality of living standards when you relocate for retirement purposes.

Here is a list of the top five cheapest countries to retire to, according to data compiled by Smart Asset:

• Portugal – You must get your hands on a residence permit if you are staying for a long period of time.
• Malaysia – You must submit a passport, visa application form, proof of financial independence, and proof of employment for at least three years.
• Spain – Apply for a residence permit.
• Costa Rica – Apply for a visa program under the Pensionado Program and show proof that you have at least $1,000 a month from a pension source.
• Panama – You can stay for up to six months if you are from the United States, Canada, or the European Union. Anything longer requires a stringent application process.

Affordability is the primary factor for moving to another country for your retirement, and there are many countries far more affordable than the cost of retiring in the US. You want to stretch out your retirement savings as much as possible, so you need a place that possesses an appreciated currency, affordable housing, impeccable healthcare, and many goods and services within reach of your new community. Additionally, consider high-probability forex trading to earn some extra cash in your retirement.

If the sound of forex trading interests you, take a look at our forex technical analysis pages or choose from one of the top forex brokers for online trading.

Conclusion

New sights and sounds could be intimidating at first, especially if you have become accustomed to the same scenery and people for much of your life. But this could perhaps be the best decision you have made if you have chosen a different destination with a lower cost of living and even retirement incentives.

Taxes could be another issue to consider. In a world with bloated budgets, mounting deficits, and soaring debts, many governments are responding with higher taxes. As a retiree, this is something you want to avoid. The lower the tax bill, the more money you have in your retirement account and pocketbook.

Many young Americans have conceded defeat on the subject of retirement.

A broad array of studies suggest that Generation Xers, millennials, and Generation Zers plan to work their entire lives or are already way behind on their retirement savings. Plus, other surveys have revealed a frightening expectation: Too many Americans do not think social security will be there when they are ready to embark upon their winter years.

But is the situation as bleak as all that for today’s and tomorrow’s senior citizens?

A comfortable retirement does not necessarily mean sitting on the porch of your waterfront property, going on a European tour at luxury hotels, shelling out thousands of dollars to day trade bitcoin, or spending your days in your Florida mansion.

In fact, a comfortable retirement consists of covering your daily essentials, engaging in modest day-to-day activities, and having enough money to pay for your medical and health expenses.

Let’s take a look at some of the specific numbers.

How Much Money Is Suitable for Retirement?

Financial experts estimate that your retirement income should be approximately 70-80% of your final pre-retirement annual income.

So, for example, if you are earning $50,000 per year by the time you declare to the world that you are retired, you will need at least $40,000 to retire comfortably.

At the same time, personal circumstances could matter.

“Because there are so many variables, even the retirement researchers can’t agree on a total dollar amount,” said Ben Storey, director of Retirement Research & Insights at Bank of America, in a note. “What each person needs will vary widely based on a number of factors.”

Suffice it to say, plan for the worst, hope for the best, and plan to live within your means. So, when retirement arrives, you will lead a comfortable life.

How Much Income Do You Personally Need for Retirement?

Who is better off?

1. Someone who receives a workplace pension, a portfolio of income-generating investment, and a social security with his or her mortgage paid off.
2. An individual who only has a savings account and a government pension.

The answer to this question will depend on how much income you personally need in retirement.

A whole range of factors will depend on the total amount of funds you must have to ensure you can enjoy your golden years. This can include your age of retirement, your pension, personal savings, social security, and individual expenses during retirement.

Plus, with inflation the way it is these days, you will inevitably need more money coming in to support the swelling cost of living.

According to an October 2019 study from the Employee Benefit Research Institute, someone over 50 will spend at least 46% on housing and more than 11% on food. Moreover, healthcare spending will increase as the years go by, while entertainment costs will gradually decline.

Where you live can also have a tremendous impact on your finances.

For example, according to data compiled by Go Banking Rates, if you were to live in the state of Mississippi, the cost of a comfortable annual retirement would be less than $50,000. However, if you were to reside in the state of New York, your cost of a comfortable annual retirement is north of $86,000.

How Can You Ensure Comfortable Retirement?

What would be the best preemptive measures you could employ to increase the odds of a decent retirement? There are several steps you can take today, whether you are 20 or 40, to establish a comfortable retirement when winter arrives. Although you might save a buck by retiring in a different country, these are the things you’ll need to consider if you want to retire in the US.

Save, Save, Save

Yes, saving can be a lofty endeavor when price inflation is at a 40-year high. A buck buys a nickel’s worth, while the real interest rate is negative. That said, saving frequently and sticking to your saving pursuits can support your retirement goals. Plus, there are various high-interest savings accounts available, especially when rates are finally beginning to rise.

Employer Pension Plan?

Are you fortunate enough to work at a company that offers an en employer pension plan? If so, be sure to learn about it and contribute as much as you can (max out, if possible). This will be a worthwhile endeavor by the time you are ready to quit the workforce.

Look Into Basic Investment Efforts

While saving is a must, investing should be incorporated into your retirement strategy. Sure, you do not need to put all of your available capital in Apple stock, but there are various tactics you could execute to try to beat inflation and cushion the economic blows of internal and external factors in the future. Learn more in the Best Investment Strategies for Your Pension Fund, but, in short, this could consist of:

• Exchange-traded funds (ETFs)
• Mutual funds
• Dividend-paying stocks
• Income-generating real estate investment trusts (REITs)
• Long-term U.S. Treasurys or foreign bonds
• Active trading—only five percent of your available capital! Read our guide to high probability trading or see our list of the top forex brokers
• Some investment strategists also advise investing in cryptocurrencies

Additionally, you’re never too old to start investing!

Trim Your Expenses

One method of getting ahead and getting ready for your 60s, 70s, 80s, and beyond is by trimming your expenses now. From cutting monthly subscription services to reducing your trips to restaurants and movie theaters to once a month rather than once a week, there are many little things you could do now that can offer big rewards in the future.

And, no, eliminating avocado on toast from your diet will not lead to enormous savings in the next three decades.

Out of Debt

Being in debt can hinder any retirement plan, whether it is credit card debt or mortgage debt. Servicing your debts can affect your monthly budget, especially as interest rates begin to tick upward. That said, being debt-free is one of the best conditions to be in when heading into retirement.

In the end, once you have achieved most of these factors, you can have a comfortable retirement and make certain that you are living hand to mouth in the final years of your life.

How many Americans have saved enough for retirement?

In fact, here is a better question: How many U.S. adults don’t even have a retirement account?

According to a recent Bankrate.com survey, more than one-third (36 percent) of U.S. workers have never had a retirement account, whether it is a 401(k) or an Individual Retirement Account (IRA).

This is both financially irresponsible and dangerous for your future. It is critical to have some form of a retirement savings vehicle to ensure you have something set aside for your winter years.

By having mandatory pension capital, you can secure funding to cover the growing cost of living and provide peace of mind, as long as you choose the best investment options for your retirement living. This takes preparation, planning, and, of course, a few extra dollars per month.

When Should You Start Investing in Your Pension Fund?

It’s never too late to start saving for retirement, but it’s also never too early. At the same time, everyone’s circumstances are different throughout their lifetime. Ideally, however, financial experts recommend saving for your retirement in your 20s once you have finished school and begin earning a paycheck, no matter how minuscule.

Remember, the sooner you save, the more money can be accumulated, and the better chance you have at attaining a comfortable retirement. Plus, this investment function can benefit from compound interest over time.

Top Strategies for Investing in Your Retirement Fund

So, what would be some of the best plans to start with when you invest in your retirement fund? Here are some strategies you should employ for short- or long-term investments:

Income-Generating Funds

Exchange-traded funds (ETFs) have become all the rage in today’s financial markets. This allows you to buy funds that mirror the leading benchmark indexes or invest in specific sectors.

So, for example, you can buy shares in the Vanguard S&P 500 ETF (VOO) which gives you access to companies listed on this index, including JPMorgan Chase or Chevron.

That said, if your investment goal is income, it would be best to invest in something that offers you a monthly dividend, such as the WisdomTree U.S. High Dividend Fund or the Global X SuperDividend U.S. ETF.

Real Estate Investment Trusts (REITs)

Let’s face it: Real estate has surged to all-time highs across the United States and Canada. It can be challenging for newcomers to find residential properties within their budgets, but this does not mean you can’t still benefit from the real estate industry.

Real Estate Investment Trusts, or REITs, allow you to invest in a company that owns, operates, and finances income-producing properties, from commercial to residential to industrial.

Some examples? Realty Income Corporation (O), EPR Properties (EPR), or Chatham Lodging Trust (CLDT).

This investment vehicle also provides you with a monthly or quarterly dividend. It can make you a lot of money without the headache of owning physical property.

A Living Annuity + Fixed Annuity

Fixed annuities are financial products that guarantee a specified rate of return on your lump sum or monthly contributions. The interest rate is generally based on the present rate in this environment.

Many investors enjoy this product because, by having a fixed interest rate, you will know how much your annuity will grow over time and how much income you can generate.

Stocks and Bonds

After several years of near-zero and subzero government bonds, the yields are finally climbing back up again. While the real rate is still negative for many advanced markets, stocks and bonds can offer a cushion for your broader investment portfolio. Be it a 10-year U.S. Treasury yield or a 50-year Canadian government bond, you can find solace in the fact that you will have some type of safe-haven asset in your portfolio by holding bonds.

For more info, take a look at our forecast of the stock markets.

Additionally, consider investing in some publicly-traded commodities with high value and safety like gold. To help you out, read about the factors that influence the price of gold or sign up with one of the top gold brokers.

Invest in Rental Real Estate

This slightly ties into REITs, but it does deserve its own section.

While you need lots of upfront capital to purchase a residential property, buying a home and renting it out can achieve two things: paying off the mortgage and then generating an income as long as you have reliable tenants.

How Do You Determine the Best Investment Strategy for Your Needs?

Assess Your Risk Tolerance

When you open an investment account at a conventional financial institution, you are usually asked if you would be fine with losing $2,000 on your $10,000 investment if it meant you could gain $2,000. This is meant to assess your risk tolerance.

So, would you?

These are the types of questions that you should ask yourself or your financial advisor to figure out the best course of action when you are planning for retirement. Indeed, if you start your investment journey late, you might need to be a bit more aggressive. However, if you are initiating your pension fund in your 20s or 30s, you can be more conservative in your endeavors.

Know How Much You Can Set Aside

Let’s be honest: Not everyone has the funds to pour into a retirement account—but every little bit counts. At the same time, knowing how much you can set aside for your later years will matter to what you invest and where.

$25 a month will not get you as far as $125 in investing. Therefore, it is imperative to establish a budget and see how much you save and invest at the end of every month.

Plan for Your Retirement

Everyone has different retirement dreams. Some want to travel the world and see Venice, Paris, and Bruges; others want to just lie on the sofa, finish a crossword puzzle, and drink coffee. Whatever the case, it is critical to envision your retirement and plan accordingly by conducting a financial needs analysis. Of course, this will inevitably change, but it gives you an idea of your future goals. Plus, you need to consider other things like medical expenses and housing costs.

Another option that retirees consider to save some extra cash is retiring in another country.

Maintain a Dynamic Investment Strategy

One of the best ways to invest for your retirement is to employ a dynamic investment strategy. This more active retirement plan consists of routinely allocating your assets that adjust to market conditions through a research and trend analysis.

Put simply, you will reduce your positions in the worst-performing asset classes while adding to positions in the top-performing assets.

An ETF (exchange traded fund) is an investment asset, consisting of a pool of investments, usually with shares from different companies. Like mutual funds, ETFs usually “track” a particular market index (like the S&P 500), but unlike them, they are easy to buy, sell, and exchange at a brokerage just like a stock from a regular company.

Thanks to the diversification they offer, ETFs are widely considered the ideal option for a beginner investor. They have many benefits over traditional stocks (i.e. company shares), including:

• Massive diversification
• A low minimum investment
• Small expense ratios
• Historically stable returns
• Unlike traditional company shares, they don’t require too much stock market analysis

Are ETFs a Good Investment Strategy?

We’ve already explained why ETFs are a stable investment—they have in-built diversification and are relatively cheap to buy. In simple terms, this means that you don’t need too much capital to get started, yet you get to enjoy the benefit of trading them like stocks. These are the primary reasons why ETFs are a great investment strategy—especially for beginners or those looking to establish a good pension fund investment strategy.

In addition to ETFs, regular stocks are also a good investment strategy, but for most people, ETFs will be a better starting point. For starters, ETFs offer broad access to multiple assets and markets, different industry sectors, and economies in different countries—all under one share. However, to invest in ETFs, you’ll need an investment strategy to go by, as it would be much better to have a guideline rather than to navigate the market yourself. Continue reading to learn more about the best ETF investment strategies.

1. Dollar-Cost Averaging

DCA, or dollar-cost averaging, is the simplest and most foolproof strategy to go for as a beginner or intermediate investor. The DCA strategy states the following:

An investor should buy a fixed dollar amount on a regular schedule (such as every 1, 3, or 6 months) on the same asset, regardless of the asset’s changing costs.

The benefits of using the DCA strategy are the following:

• It teaches investing discipline
• It minimizes risk despite price fluctuations
• It’s almost always profitable if one sticks to it long enough

Who should use dollar-cost averaging? Dollar-cost averaging is a great strategy to go for regardless of your experience level, as both completely new and knowledgeable investors alike can go for it without having to learn anything special about the market. Most investors utilizing the DCA strategy are beginners who have just joined the workforce (i.e. people in their early 20s and 30s), meaning that it’s best recommended for those who have a stable income.

2. Swing Trades

Unlike DCA, swing trading is a slightly riskier approach to investing, which is a strategy based on finding larger “swings” in assets—be it stocks, indices, or cryptos. With this strategy, many get fooled by the keyword: trading. Keep in mind that, unlike classic day-to-day trading, swing trades are positions that are held for a long time. They often require weeks—or even months—on end to work out and be profitable, and they’re usually placed on a specific asset or asset class.

The benefits of swing trading are the following:

• It doesn’t require too much market analysis or knowledge about the current economic climate
• It doesn’t take an overly active approach to trading and investing, requiring no more than a couple of hours per month
• It provides a small to medium profit level, as it’s based on utilizing the biggest market swings possible

Who should use swing trades? Our previous strategy (DCA) is probably one of the safest approaches one can take to investing, which is not the case for swing trades. This is an investing style that has bigger risks, meaning that beginners should stay away from it, as it’s primarily suitable for intermediate and experienced investors.

3. Hedging

Hedging is an investing style made with the intention of reducing risk when an asset loses value. Namely, a hedge is an offsetting (i.e. opposite) position of the one you intend to take, primarily done with the goal of reducing risk and minimizing losses in case your initial position goes south. Most experts refer to hedging as an “insurance policy”. However, as is the case with most insurances in real life, you have to pay for it.

The benefits of hedging are the following:

• It drastically reduces losses
• It allows traders to survive big market swings
• It helps increase overall liquidity

Who should use hedging? Hedging is a strategy best suited for investors who want to minimize their risk, but won’t mind having smaller profits for it. Of course, hedging carries its own risks, as it isn’t a foolproof strategy, which is why it’s best suited for investors who have passed the beginner stage of investing.

Should You Invest in ETFs Over Other Strategies?

Long story short, ETFs are a great asset class to invest in, especially as a beginner or intermediate trader. They offer the smallest risk possible while giving you incredibly broad market access, which in turn leads to minimal volatility. Many also like to discuss the concept of CFD vs ETF for investing, though we would recommend sticking to ETFs if you are a beginner or intermediate trader. In fact, ETFs are even a suitable investment strategy for senior citizens without investment experience.

Before taking the final step and diving in the world of ETF investing, it’s necessary to register at a good and reliable broker where you won’t have to be concerned about your money. Consider checking out our list of the best ETF brokers and going for the one that suits you best.

Want to know how to retire comfortably in the US? Read How Americans Can Retire Comfortably.