Have you heard about the tremendous Forex market opportunities but are not sure how to start trading? If yes, you will learn everything about starting a Forex trading career on the right foot within these lines.
The main question to consider when starting on Forex
There is a never-ending list of questions the beginner trader has in mind. From the starting capital, the best strategy, and currency pairs to choose, brokerage platform to go for, to long-term vs. day trading dilemma, just to name a few. With all these in mind, we compiled this mini-guide covering the following topics:
Importance of a reliable broker
Good intermediaries in currency trading should be at the top of your priorities. It’s not only important for beginners but all levels of traders. But what does even mean to be a good trading intermediary? Well, many will say low spreads and fees, and they won’t be wrong. However, there are some other sides of their trading conditions to pay attention to. These are the features of their trading accounts, the additional assets they offer for trade, the leverage ratio, and so on.
But, what is most important is finding the transparent and regulated one offering many trading products along with the best trading platforms for trading, such as MetaTrader 4 or MetaTrader 5. Reading a Forex broker review and comparing several options would be of much help to you at this point.
Opening trading account
After you have wisely opted for a good brokerage, the time is to open an account. It’s most probable that you will get all the instructions on their website. However, be ready to provide a bunch of personal info as well as the info regarding your trading skills/level, your annual income trading objectives. Make sure to choose the appropriate type of account for you, and for that, you can use the assistance of your account manager. As a beginner, no need to go for the VIP option. There will be times for that. Go slowly and steadily, compare accounts, and pick the one that suits you the most.
The wise choice of currency pairs
Your choice will naturally depend on the trading strategy and vice versa. Most often, the more volatile pairs are suitable for day trading, scalping, and swing strategy. On the other hand, there are less volatile pairs typical for more stable economies. These might be a more suitable choice for the rooky Forex trader. As a newbie, you should consider a more popular currency pair just to feel the market and while you are just trying your hand. After a couple of months or even a year, you could switch to exotic pairs.
Don’t start out of the blue – check free learning resources.
There is a lot more beyond the currency pair choice, opening and funding the account. Although Forex trading is one of the most straightforward financial markets, you need to learn and update that knowledge. Make sure you read ebooks related to Forex trading strategies, listen to podcasts, and watch tutorials. To be honest, half of a year is the minimum you need to dedicate to initial education. Fortunately, the internet doesn’t lack these free trading educational resources for newbies.