Online forex trading has become so popular nowadays that anyone can try it out and get the chance to hit it big on the Forex market. However, do not underestimate the risks involved in trading. Before starting to trade, you have to learn the basics.
Once you’ve done that, you can move on and learn advanced tactics, and create your own strategies to suit your trading style. Though it might seem tedious, Forex trading is very easy to learn. And it’s crucial to do so, to prepare yourself for the challenges ahead.
What Is Online Forex Trading?
Forex trading is a fun and exciting way to make investments and earn money. It implies the exchange of foreign currency for trade. These are known as instruments. Certain platforms allow you to bid on precious metals, such as gold and silver as well.
The object of Forex trading is to buy one currency at a smaller price than the price you sell it for. This obviously takes a lot of patience and a keen eye for opportunities. It helps if you can predict the direction in which the foreign exchange market will go.
Naturally, Forex trading moved online as soon as the technology to do so developed. You can be immediately notified about changes in the market, and perform transactions instantly, no matter where you are and in the world.
How To Get Started
It’s very easy to start trading with most Forex platforms. However, getting good at Forex trading is a whole different matter. Bear in mind that these tips are just meant to help you get started. While learning the basics can be easy, understanding the finer points can take a little more time. You need to practice quite a bit before you can start making significant investments.
Choosing a Forex Platform
Before starting to trade, you need to choose a platform. There’s quite a large number of them available, and choosing just one can be surprisingly difficult. However, there are some criteria to consider that can help you in reaching a decision.
First, make sure your broker has the proper license to operate and is being monitored by an official agency. Because Forex trading is so popular, naturally, a lot of scammers are making an effort to profit by setting up fake trading platforms.
You can also read reviews to see what other users are saying. Be mindful of trading platforms that have only positive reviews, especially if those they focus solely on the beneficial aspects. This could be an indication that they are not entirely truthful.
You should also compare the rates, promotions, and bonuses each platform has to offer. While all trustworthy sites must abide by the same set of standards, they can differ in some respects. Find the best deal that works for you.
Creating an Account
Creating an account is the very first step you need to take before starting to trade. The requirements for opening an account differ from platform to platform. Some demand a minimum deposit to open a live account (the one you use to trade).
Newer platforms also offer the option of creating a demo account. These accounts are free to use. They simulate the conditions of the real Forex market, but they do not use real money to trade. Setting up a demo account is an excellent idea if you’re new to the Forex market.
Choosing Your Instruments
There are a number of things you can invest in. These are called instruments. The most common type of Forex trading instrument is currency, though some platforms also allow you to trade in precious metals, stocks, and other resources. Currency is the best option when you’re just starting out.
Preparing a Basic Strategy
To prepare a basic strategy, the first thing you need to do is research the market. There are a number of ways you can analyze market data in order to leverage that into a successful trade.
You can look at the current events that are taking place in a country or countries that use a certain currency. Foreign relations and commercial deals are especially relevant. This method requires a somewhat broad understanding of the way in which the economy works on a social level.
You can also look at recent growth and changes in the market to spot patterns. You can try to use these models to predict which way the market will go.
If you opt for a very dynamic, aggressive trading strategy, you won’t require as much research. However, these types of strategies can be much riskier, since you have to think and act quickly in order to make the most profit. However, they can also be much more rewarding as well.
Top Online Forex Trading Platforms for Beginners
To help you choose a platform, we’ve selected some of the best online Forex trading sites that are well suited for beginners. Each platform has its advantages and disadvantages, so the final decision is up to you.
OptionsXpress is an excellent platform to start with, even if you decide to switch to something more challenging later on. The company offers an extensive library of free educational material on a variety of subjects related to trading.
Their platform is very easy to use and grants you access to all of the basic tools you might need. They also provide their clients with studies and market analysis to help them stay on top of things.
Another trading platform that offers a wide variety of resources for beginners is Markets. They can help you learn the basics of all aspects of trading, and provide you with expert insights.
You can also set up an unlimited demo account to experiment until you feel comfortable jumping into the real deal. When opening a live account, they offer a $25 bonus you can use to start trading immediately. As our Markets review shows, there are many other features both beginners and seasoned traders can benefit from with this platform.
A well-respected and very popular platform, AvaTrade places a lot of emphasis on teaching new traders how to navigate the world of online Forex trading. They deal in over 250 instruments and have millions of users worldwide.
They also have excellent 24/7 customer service, available in 12 languages. It’s definitely an option worth considering. You can read our AvaTrade review for a more in-depth analysis of what this platform has to offer.
The company is very interested in making the trading process as easy and simple as possible for its clients. This is one of the reasons why EasyMarkets stands out as a top choice for beginners. Their mobile app is optimized to work on a variety of operating systems.
They also offer bonuses and promotions that are meant to encourage new traders. These offers change from time to time, so make sure you’re not missing out on any opportunity.
Online Forex trading has never been easier. If you are interested in trying your hand at Forex trading but are still unsure about how you should go about it, feel free to ask us!