The UK remains a popular financial destination for those seeking to live and work abroad. However, in recent years, an increasingly popular option for ex-pats has been to become a trading nomad. A trading nomad travels the world while making a living from finding opportunities in the financial markets. If you are curious as to how you can become one, you can do through several different models, such as CFD trading, stocks trading, or FX trading.
The benefits of becoming a trading nomad
Becoming a trading nomad allows you to live a location-independent lifestyle, which means you can travel and live wherever you want. Additionally, it can be a very lucrative way to make a living, as there are many opportunities to make a significant income through online trading.
Furthermore, becoming a trading nomad also has several tax advantages. For instance, in the UK, you can become a “non-resident” for tax purposes if you spend less than 183 days in the country in a given year, which means you would only be taxed on your UK-based income, not your global earnings.
What are the challenges facing trading nomads?
Of course, becoming a trading nomad is not without its challenges. For starters, obtaining the necessary visas and work permits to live and work in some countries cannot be easy. Additionally, many countries restrict how much money you can bring into the country, limiting your ability to invest and trade effectively.
How to become a trading nomad
If you are interested in becoming a trading nomad, there are a few things you need to do.
First, you need to get set up with an online broker that offers trading in a wide range of assets, such as forex, stocks, and commodities. You will also need to open a bank account with an international bank that offers reasonable rates and conditions for international transfers.
Next, you must ensure you have the correct visas and work permits for the countries in which you plan to live and work. It can be a complex process, so it is essential to do your research and consult with an immigration lawyer if necessary.
Finally, it would help to create a comprehensive trading plan that considers your investment goals, risk tolerance, and the markets you plan to trade. It will help you minimise your risks and maximise your chances for success.
Trading forex online
One of the best ways to become a trading nomad is to trade forex online. Forex, which stands for foreign exchange, is buying and selling different currencies to make a profit.
For example, let’s say you believe the US dollar will strengthen against the British pound over the next few months. You would then buy USD/GBP (US dollars against British pounds) and wait for the exchange rate to increase. Once it does, you sell your currency pair and lock in your profit.
You should note that forex trading can be a risky business, as currency values can fluctuate rapidly and unexpectedly. However, it can be gratifying to make a living if you’re careful with your money management and have a solid trading strategy.
What to bring with you on your journey as a trading nomad
As a trading nomad, you’ll need to take some essentials with you on your journey. For example, you’ll need a laptop or computer to trade online and stay connected with your customers and followers.
Additionally, it’s essential to have a good and stable Internet connection, as you’ll need to be able to access your trading platforms and other online resources quickly and reliably.
Finally, you’ll need to make enough money to cover your living expenses while on the road. It’s a good idea to have at least three to six months’ worth of living expenses before you start your journey as a trading nomad.
Becoming a trading nomad is a great way to live a location-independent lifestyle and make a living from anywhere in the world. However, it’s essential to know what the challenges are that come with this type of lifestyle. You can be successful as a trading nomad with careful planning and execution.