Forex trading is quickly becoming one of the most popular forms of speculative investment. Currency values are constantly fluctuating, which means that every day, thousands of people are making or losing money on their Forex investments.
The value of a country’s currency represents the economy’s strength and the amount it produces for its citizens. Investing in Forex can be an exciting opportunity to learn about global economics and how they impact our daily lives.
Most investors begin by purchasing one currency with another (called “pairing”). For example, if you wanted to invest in British Pounds, you would buy US Dollars or Japanese Yen because those currencies pair well with the British Pound. With this method, traders hope that the value of their investment rises relative to the value of the currency they purchased.
These investments are so popular because they can be started with very little capital, making them attractive to small investors. There is no minimum required for withdrawals so that you can access your money at any time.
Now that you have some background information on Forex trading let’s get into some specifics about how you can begin trading.
STEP 1: Open a Real Money Account with a Broker
Once an investor has decided what pair they would like to trade (i.e., British Pounds), they need to open an account with a Forex broker.
These brokers specialize in purchasing and selling currencies on behalf of their customers.
There are hundreds of different brokers from which to choose, so it is essential to research to find the one that best suits your needs.
When choosing a broker, be sure to look for those with a good reputation and offer competitive spreads (the difference between the bid and ask prices).
Additionally, be sure to read the fine print before opening an account, as some brokers may have hidden fees or minimum requirements.
STEP 2: Fund Your Account
Once you have chosen a broker and opened an account, you will need to fund it with real money to start trading.
This money will be used to purchase currencies when you make investments.
The minimum required deposit varies from broker to broker, but most require only a few hundred dollars.
STEP 3: Choose a Trading Platform
There are several different trading platforms available to help you manage your investment.
They all perform the same function, but each has a unique style that may or may not suit your preferences.
Some brokers offer several trading platforms to give their customers options, while others only provide one.
There are free and paid versions available, so be sure to choose one that works for you!
STEP 4: Begin Trading!
Now comes the fun part: making trades and watching investments grow or fall based on economic factors.
Remember, Forex is about speculation and educated guesses as much as it is about legitimate analysis of economies.
It’s essential to research and understand what is happening with the currencies and why.
Companies to start trading with
The region is witnessing a boom in its financial markets. High liquidity, an increasing number of cross-border deals and growing interest from foreign investors have increased the opportunities for retail traders.
Some brokerage companies specialize in providing trading services to retail customers. These include eToro, Alpari, Oanda etc.
They provide trading platforms with some or all of the following features – technical analysis tools, demo accounts, educational materials etc.
The best company to start your forex trading career is Alpari. It’s a relatively new company & it offers a variety of products like MT4, MT5 & Alpari one account.
Alpari also offers Forex signals service at affordable prices which you can subscribe on Monday
FxPro is a well-known company with excellent customer service.
It offers MT4, MT5, cTrader and FxPro SuperTrader platforms.
Oanda is a well-established company that offers its clients a wide range of products, services, and tools. These include – trading platforms (MT4 and OANDA fxTrade), educational materials, research tools etc.
There are also many other good companies to start your forex trading career. Do some research and find the one that best suits your needs. Link to Saxo for more info.