The forex trading It is more accessible than ever thanks to online trading platforms and many brokers with whom you can now interact. You no longer have to be a great investor to enter the forex market. In fact, you can open a trading account with only $ 10.
You can even start operating in minutes; Yes, starting to trade in forex is that easy. However, an accessible forex market is not a reason to treat forex trading lightly, especially if you want to get profitable. Here are the steps you should take to start trading forex properly.
Understand the market
Before starting to compare brokers and trading platforms, you should take your time and understand the market. At a minimum, you have to cover the basics before taking more steps. For example, learning that a pip represents a point for each batch with which it operates is very useful.
It is also advisable to understand the basics of technical analysis – and the indicators you can use – as well as the fundamentals. You can review what you have learned in this phase later, which means that you will start to operate with enough knowledge about the markets.
Fortunately, you have internet on your part. You can find many online resources – including this useful guide to easyMarkets – about how forex trading works.
Choose a broker
An important step to complete is compare brokers. To ensure profitability, it is important that you work with a prestigious broker, that has low spreads, a reasonable commission structure and a competent trading platform. Sometimes you also have to consider special offers.
Now that there are web pages of reviews and forums to consult, choosing a broker is just as easy. This is an advantage for you, since you can access the reviews of different operators beforehand and then visit the web page of the broker that interests you.
Before making your final decision on what broker to use, you should also review the terms and conditions of the broker, the deposit and withdrawal methods supported and other details such as trading platforms available.
Start with a demo account
Another factor that facilitates the initiation in forex trading is the availability of demo accounts. As its name suggests, demo accounts are accounts that you can use to operate in real time – in the real market – without risking your real money in the process.
The broker you choose will usually have demo accounts in which you can register and use them to practice. This is where you will use the knowledge and basic concepts you learned before, and start trading using demo money. It is also a good opportunity to test your analysis capabilities and your trading strategy.
If you are operating profitably in a demo account, you will know that you can get profitability with a live account. When you are sure you have completed the steps properly, you can open a live trading account, make the initial deposit and start generating real profits with your live operations. From here, the rest is simple.