The Foreign Exchange market, abbreviated as Forex is hands down the biggest financial market in the world. It involves exchanging of currencies of various types and traders speculate on the values of different currencies. The daily transaction volumes of Forex tend to be way higher than leading stock Exchanges of the world. However, it is undeniable that beginners in financial markets find Forex easy to deal with. It is also preferred by retail traders who have modest money to invest.
A majority of participants in the Forex market include commercial banks, hedge-funds and large MNCs. It is possible to start trading with an amount as low as $100 and still avail same trading conditions enjoyed by the big shots!
Nuances of Forex You Should Know
Unlike the stock markets, there is no central location for the Forex. The banks and any other participants are linked through electronic communications networks. Forex Trading takes place round the clock, from Monday to Friday. Owing to this decentralized structure of the Forex, involved traders sell and buy currencies without having to incur added fees and commissions. In Forex, trading from anywhere and anytime is simple. Even a novice can simply create a log in and navigate through the self explanatory website with ease.
How To Join The Market
To join this international electronic market, you will require:
- Account with Forex Brokerage Company. It is required to execute selling and buying orders.
- A PC with web connectivity
- A trading terminal/app
Below listed are the required steps to join Forex and start trading:
- Selecting a suitable broker-First of all, you will need to identify a suitable Forex broker. There are several hundred brokers, but reliable ones offer demo accounts to the prospective clients at zero cost. When you want to join the Forex market, evade those brokers who skimp on providing demo.
- Going slow and steady-You may choose to open several demo accounts. However, it will be prudent to open one demo account first and experience the nuances of forex trading.
- Setting up trading app-Next, you will need to download and install the required Forex trading application. The broker will guide you regarding this. Post installation, you can open the app and start trading anytime. Since the Forex market operates round the clock, you will notice price fluctuations that are quickly populated.
- Trading with demo account-Next, you will need to trade currency using the chosen Forex demo account. It will help you acquire trading skills before dealing with real money, for sure. Besides, it aids new Forex traders evaluate efficacy of the trading platform of his or her broker. Remember, the Forex platforms are proprietary and brokers deal with various software applications. After trying a few such platforms, you will be able to zero in on the best one.
- Finalizing a broker-After using a few simulation or demo accounts, it is necessary to find a broker who offers necessary leverage for your trading needs. Choose from standard, mini and micro type of forex accounts based on start-up capital and your capacity to take risks. Then you will need to sign up for the chosen account online and fund it with the necessary capital. Install the necessary software for it and you can start forex trading.
If you have the knack to trade then Forex is a platform that you can put your thinking into action and multiply your funds. Yes, you too can become rich with Forex! You are just one step away!