Getting started
Trading forex online for the first time can seem daunting at first but it doesn't have to be.
Here's a short primer on how to get started trading forex online:
1. Do your Homework
The best advice you will ever receive as a beginner forex trader is do your homework before you trade. Before open an account and depositing your hard earned money you need to learn a little bit about forex trading:
- What is forex trading?
- What brokers should I consider as a beginner forex trader?
- Why are some forex brokers better than others?
- What are the different forex account types and which one is right for me?
- What's a trading platform and which one is right for me?
- Are there any recommended forex training and education tools I can turn to to improve my forex skills?
If you consider each of the above questions before opening your forex account you will be on the right path to forex success.
2. Open a Demo Account
The best thing a beginner forex trader can do is open a demo account and get used to placing trades on a trading platform without risking real money. Take a few weeks to trade with your demo account and get used to the various charting tools and order entry settings that come bundled with the trading platform.
We recommend you trade in your demo account for at least a few weeks so you can get a good sampling of quiet market days and volatile market days. Different market conditions will push your trading skills and strategies to new directions and get you better acquainted not only with the software but also with your tolerance for risk.
3. Use the Free Training Tools
Opening an account will more often than not entitle you to basic training and education tools provided by the broker. These are often pretty basic but they should to help you improve your knowledge and understanding of the forex platform you’re trading on and your forex knowledge generally.
Be sure to explore all the tools your broker has on offer. Most brokers offer training simulators, videos and how-to articles. The more of these you go through the better a trader you are likely to become.
Also be sure to subscribe to your broker's education emails if they offer any. Some brokers offer daily emails with a daily market snapshot and some chart analyses. Daily videos like these will bring you up to speed on the forex world in no time.
4. Start with a Minimum Deposit Account
Some people believe minimum deposits are a waste of time and money - we disagree. Our approach is not to bet the house when you’re learning the game. Smaller accounts will give a a taste of the risks (and hopefully the rewards) involved in forex trading and you won’t lose your shirt doing it.
Because your trading with margin you will be able to leverage your minimum deposit of say $200 to make trades of up to $8,000 - depending on the broker. This means that your small initial deposit should still give you something to work with.
Most importantly, starting with small amounts will give you a feel for the risk involved in a fast moving sometimes volatile market that demo accounts can’t give you.
5. Keep Learning
There are many forex learning and trading tools out there. A good place to start exploring these is on our website. Start exploring the various charting tools and indicators out there. These are software products designed to help you analyze and attempt to predict market turns. Many of these software products are decision making products designed to tell you when to buy and sell.
Keep your eye out for forex classes in or near your hometown. Some famous and very successful forex traders have been going on seminar tours sharing their skills and experiences with forex novices. There are also plenty of online courses and webinars worth checking out. We profile some of these on our site.
Finally, books are always a great resource. Check out our site for some highly recommended forex books to start.
6. Stay on Top of the News
Simply put, the news moves the forex market. Stay connected and in touch and learn what kind of news affects the markets in what ways. We profile some great forex news sites on BestForexTraders.com - check them out!