Many traders, both novices and those who are already experienced in dealing equities or commodities for profit have recently turned their interest to the huge and highly liquid foreign exchange or forex, market due to the many advantages that it offers them. If you are also thinking of joining this trend, then forextrade.co is the right place to get started.
* CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before diving into this wonderful, exciting world, let's try and understand what is forex trading. In its most basic form, foreign exchange involves the exchange of one currency for another. Of course trading activity is much more complicated and involves buying and selling currency pairs, using various instruments, like forward contracts, vanilla options, CFDs and binary options.
The availability and accessibility of the global forex market is one of its major advantages. The global fx market operates around the clock from Sunday to Friday which means that you can basically trade at any time, day or night, excluding the weekends of course. And, although the market’s major currency trading centers are London, New York and Tokyo, as long as a trader can access the Internet with a relatively recent computer, he can trade currencies from just about anywhere by opening and funding an online forex trade account with an online broker.
Another very important advantage is that dealing spreads are especially tight and very few brokers charge commissions. This is a result of the increasing competition in the market and growing number of brokers and specialized comparison sites.
So you see how getting started with fx trading online is both easy and cost effective. Here is what you should do in order to start trading.
It makes little sense to take the time to set up a trading account if you do not anticipate having access to risk capital to trade with in the near future. Risk capital consists solely of money that you can afford to lose without sacrificing any necessities of life.
For a retail forex trader, online currency trading typically requires an initial deposit to a currencies trading account with a broker. Even though you can always practice your trader skills using a forex demo account or simulator funded with virtual money, if you want to take on real positions, you will need to at least deposit the minimum amount of capital specified by the broker you are interested in using. Fortunately, this amount can be less than $100 with some services.
If you are reading this article on the Internet, then you probably already have all of the equipment you will need to trade online, which basically consists of a relatively recent computer connected to the Internet.
In terms of software, basically all online brokers will provide you with a suitable forex trading platform free of charge. The platform can either be downloadable or a web based interface. Typical currency trade platform software will allow you to monitor the fx market, perform technical analysis, enter trades and orders, and manage your positions.
Mobile trading is another option which is growing in popularity. Most leading brokers already offer a trading apps, where you can enjoy the same functions from your mobile device.
To ensure that your trade experience is a positive one you need to choose a trustworthy broker. The list below contains some of the best online forex brokers in the market today. You can read our reviews of the brokers to get more information about each of them or simply click on the relevant link to go straight to their website. To open an account with any of these providers you will need to fill out a form, provide appropriate documentation and fund your account.
Once your account has been funded, you are ready to start. Make sure you take the time to learn about how the market works and develop a trading plan.