Forex Trading Online has become extremely popular over recent years for a few good reasons, but primarily because of the ease of use, ready access to support services and share volume of information available for the new trader all of which allow you to develop your own effective Forex Trading Strategy. The rise of online forex has also meant greater competition between forex trading platforms, and that is good news for traders. More services and lower costs is the result as trading platforms compete with each other to attract the attention of new traders entering the market.
Forex Trading is also one of the truly recession proof investment models around. No matter what’s happening in your local economy, if currencies are changing value against each other (which they do every day, and often more than once per day) there’s an opportunity to profit from a forex trade. Not only this but most online forex trading platforms also allows traders to enter the commodity trading best forex broker game as well – Gold, Oil and other commodities can be traded from the same systems as US Dollars, Euro’s and Japanese Yen. Another good thing is the ability to “Leverage”. This allows you to trade tens or even hundreds of times you actually amount of money in a single trade. Remember that the amount of money you make off each trade is determined by the size of the trade, and even a small starting balance will allow you to trade the equivalent of thousands of dollars of actual currency. With these sorts of volumes even small profit margins can net significant monetary gains!
How to get started:
1. Do a little reading. There’s a number of free ebooks available on forex trading, but there’s one provided by easy-forex.com that’s a great starting guide. It’s also a good guide to refer back to later on, so print out a hard copy too. there are also some great tutorial guides available online for a vary modest fee. These tend to be complete trading manuals including strategies and trading tactics.
2. Get a Practice Account. There are a number of good places you can get a Forex Demo Account, but two of the most popular are eToro and easy-forex. You’ll need to download their software and install it on your computer, but once it’s set up you can take a crack at applying your recently gained knowledge to the real world of forex trading WITH NO RISK. A demo account allows you to gain the experience of actual trading in a live environment, but without risking any actual money – simply put there is no better way to learn forex trading without risking a cent than by getting a Forex Demo Account, and any new trader should consider a demo account a MANDATORY step in their Forex trading education.
3. Go live with a mini account or micro account. Once you’re comfortable with your demo account and you’re ready to move on to the real thing, go ahead and open a live trading account and make your initial deposit. Many trading platforms offer sign up bonuses or other incentives on your first cash investment. In some cases this can mean as much as $1000.00 gets credited to your trading account as a “welcome aboard” bonus! Mini and Micro accounts are just names given to small initial deposit accounts. Despite the lure of large welcome bonuses, start off with a small account – a demo account is one thing but there’s no substitute for a live trade.
4. Go forth and Multiply! The final step in your forex trading plan should be to work your way up to a full scale trading system. Start allowing yourself to make bigger trades and explore other currency pairs or commodities. Slowly but surely wins the race, but don’t be afraid to put your foot to the floor in some cases too!