Forex trading is more accessible than ever thanks to online trading platforms and the many brokers you can now engage. You no longer have to be a big investor to enter the forex market. In fact, you can start a trading account with as little as $10.
You can even start trading in minutes; yes, it’s that easy to get started with forex trading. However, an accessible forex market isn’t a reason to take forex trading lightly, especially if you want to be profitable. Here are the steps you need to take to start forex trading the right way.
Understand the Market
Before you begin comparing brokers and their trading platforms, you need to take the time and understand the market. At the very least, you want to cover the basics before you take further steps. Learning about how a pip represents a point for every lot you trade, for example, goes a long way.
Understanding the basics of technical analysis – and the indicators you can use – as well as fundamentals is also recommended. You can refresh what you learn at this stage later on, which means you will start trading with enough understanding of the market.
Fortunately, you have the internet on your side. Aside from Money Mini Blog, you can find other resources online – including this helpful guide from easyMarkets on how forex trading works.
Pick a Broker
An important step to complete is comparing brokers. To ensure profitability, you want to work with a reputable broker with low spread, reasonable fee structure, and a capable trading platform. There are special offers (i.e. bonus bankroll) to take into account as well.
Choosing a broker is equally easy now that there are review sites and independent ratings to read. Rather than flying blind and visiting the websites of forex brokers manually, you now have thousands of fellow forex traders sharing their experiences with different brokers.
Before finalizing your decision about which broker to use, you also want to review the broker’s terms and conditions, the supported deposit and withdrawal methods, and other details about the supported trading platforms.
Start with a Demo
Another thing that makes getting started with forex trading easy is the presence of demo accounts. As the name suggests, demo accounts are accounts you can use to trade in real-time – in the actual market – without risking any of your real money in the process.
The broker you choose will have demo accounts that you can sign up for and use to train. This is where you get to use the knowledge and basics you mastered earlier and begin trading using demo money. It is also a good opportunity to test your analytics ability and your trading strategy.
If you are profitable trading with a demo account, you know you can be profitable with a live account. Once you are certain that you have these steps completed properly, you can open a live trading account, make an initial deposit, and begin earning real profit from your live trades. The rest is easy from here.