Have you ever wondered what happens on the Forex market? You might be interested in trading but don't know where to start. Well, you wouldn't believe it, but it's very easy and you don't even need money to start. Let me tell you a little bit about the world of trading currencies.
Forex, which stands for "foreign exchange," can be broken down into a few key parts. These are a market, your broker, the trading software that your broker uses, and yourself. In short, you will make decisions, put them into software for trading, and then watch what happens. At this point, you don't need to know much else about your broker.
But the most important thing to know about your broker is that any money you put into your account is safe. Find out where each broker you are considering is based and if they are required to work with local regulatory agencies. The best way to find out about brokers, in all honesty, is to find a trading forum and ask other people for advice.
Once you've found some potential brokers who meet your requirements for trust and regulation, it's time to dig a little deeper. You should think about both the features of their trading software and how much it costs to make a trade. Just download their software, which is usually called a "platform," and trade with a "play money" account.
The pip spread is the cost of getting into a trade. The spread, which is measured in points or pips, is the difference between the market buy price and the market sell price. The more this spread is, the more the market has to move in your favour for you to make a profit. But if you find a broker or trading platform that you really like, it's fine to accept a slightly higher pip spread.
Let me put it all together to show you how easy it is. Find a broker. Get their trading platform here. Create a free account for a game. You can buy and sell currency pairs to learn how the market moves and to get used to your trading platform. Keep using a game account for a few months until you've seen a lot of different things happening on the market.
All done. Now that you've started trading in a game account, it's time to start going to online trading forums and reading everything you can. You'll need to know about charting, fundamental and technical analysis, stops, limits, and a lot of other words that sound complicated but are actually easy to learn once you start trading.
Lastly, don't worry about picking the best broker because you'll have plenty of time to switch to another. In fact, by the time you're ready to switch to a real account, you'll know for sure if your broker's platform has all the charting and trading tools you want. Now it's time to go out and start trading.
