For those who are looking for a business opportunity they can start form home, dropshipping is a fairly easy business model to understand. One other opportunity that seems just as popular, but less well understood, is Forex trading. Making money from Forex trading is similar to dropshipping in that it means buying at one price, selling at another, and then keeping the difference as profit. However, even though there are plenty of websites advertising the amazing profits that can be made from buying and selling the world’s top currencies on the Foreign Exchange market, would most people find that their own dropshipping business would provide a better opportunity?

Starting a Forex business takes knowledge and money

If you want to start selling drop ship products, you need to find a good supplier, and then simply set up a way to market your new dropshipping business. With plenty of options for both, dropshippers have plenty of choice and in most cases can get started with little or no investment, and only needing to know a few basics. Trading in currencies, just like trading in shares, is a much more complicated business model.

As well as the need to understand how the Forex market works, new traders will also have to understand the various strategies that are used to highlight the profitable trading opportunities. Needless to say, there is a lot to learn, and while there are websites, books and courses that can teach you what you need to know, it will all come at a cost. So while most dropshippers can start their business as soon as they have found a good dropshipping supplier, Forex traders are likely to have a very steep, and expensive, learning curve.

You have much more to lose with Forex Trading than Drop Shipping

Selling drop ship products doesn’t require any investment. You only invest money with your dropshipping Supplier once your customer has paid you, and as long as you have found a good supplier, most dropshippers should find there is very little risk. Forex trading requires a much bigger investment, and not just in learning your trade and getting set up. Because your profit may only be a few percentage points from each trade, to make a healthy profit you need to have a reasonable sum to invest.

What’s more, even if you have a good few dollars to invest in your trading, there’s no guarantee that you will make a profit every time – far from it. Forex is like any other kind of trading in that losses are common, in fact they are to be expected; and those who are new to Forex and not really sure what they are doing, could end up losing more than most. Dropshippers don’t need to buy their drop ship products until they have made a sale, so they should never have to sell at a loss.

Forex Trading can require a lot of your attention

One of the benefits of your own dropshipping business, is that once you have set it up, you can pretty much leave it to run while you are off doing other things – either relaxing or looking at new ways to grow your business. Your ecommerce sites and online stores do the selling for you, so you only have to check back on your business occasionally, to organize the orders for your drop ship products – and many dropshippers even automate this part of their business.

While most Forex trading platforms do allow you to set limits on your profit and loss, so your trade will conclude itself automatically, many people prefer to constantly watch the markets, looking for signs of a new trading opportunity – but this leaves them little opportunity to do anything else. If you are just starting out, Forex trading is likely to place a much greater demand on your time than dropshipping, which won’t suit everyone.

For those who know what they are doing, and have the time and money to invest in Forex trading, it can be a profitable business opportunity. However, anyone looking for an easier, less risky business to start, that still offers excellent profit potential and long term prospects, might want to consider selling drop ship products instead.