Forex trading is a very fast-growing field that offers some significant benefits over other investment methods. Still, many people are reluctant to become involved in Forex solely because they lack fundamental knowledge. This will help explain the basics of FOREX trading.
One time, the Foreign Exchange market was limited to everyone except for huge players such as corporations and national banks. In the 1980s, the rules controlling the market were changed to allow smaller investors to participate using margin accounts. This is the primary reason that FOREX trading has become so popular, with margins of 1:100 (Leverage), you can control $100,000 with only a $1000 investment.
- Read more Leverage and Margin [Coming soon]
There are risks involved with FOREX trading (like everything else), and even though getting started trading is not hard, FOREX trading is not simple. Someone interested in trading on the FOREX market needs to learn as much as you can about the market before starting trading.
Chose a Good Forex broker
To trade, you will need to go through a broker to make trades on the exchange. When choosing a broker for you, make sure to find a reputable broker associated with an acceptable financial institution such as a bank. To protect yourself from fraud, be sure that the broker you selected regulated correctly. But You Don’t have to worry about that we did the most of the work and narrow down the best brokers for you – HERE
- Read More How To Choose A Good Forex Broker
Opening a FOREX account will require filling out paperwork (though your computer) and providing a photo of an acceptable form of ID (National Identity card, driving license, passport, etc.) You also need to sign a Margin Agreement. This Agreement will state that the broker can interfere with any trade if it feels it is too risky(wich Happen very rarely). This form protects the broker since most of the trades will be made with the broker’s money in a margin account. Then you will need to deposit to your account so you can start trading. Most brokers allow you to deposit your account using several different ways, such as credit card, PayPal, Skrill, or even wire transfer.
Brokers will include several different account types. Most brokers have a mini account that you can open with as little as $10. The standard accounts will normally take a minimum investment of $100 or more. The actual Leverage will also vary by account. This is the amount of money you can control per each dollar of your money. Higher-level accounts will provide you with greater Leverage and allow you to control more Money(Higher is better).
Always Start With Demo Account
It is highly recommended that you start trading on Demo Account for at least a month before you attempt any real trades. Brokers will have a demo system that you can use for free for at long as you need. This allows you to practice your trades online like real trade, except there will be no money gained or lost. This teaches you about the market and will enable you to learn the software system used for trading.
Each broker will have their system for making trades and gathering information. Most brokers will provide the following tools: real-time quotes, news feed, technical analyses and charts, and profit and loss analyses. Every broker has an online system that will you to make your trades online. You will need a pc or smartphone with internet access to use this.