What is Forex? Forex is an international online currency market where national and regional currencies such as USD, EUR, GBP, JPY, and other are traded. Day by day, exchange rates of various currencies fluctuate on Forex depending on numerous factors. For example, the exchange rate of the EUR/USD pair can be at 1.2345 at a certain moment, but after some time it may slide to 1.2250.
Forex market participants place trade orders at one price (deal opening) and conduct opposite exchange operations at another price (deal closing). This way, they aim to derive profit from the rate differences. Even a slight change in prices can bring a sizable profit commensurate with stock trading.
How to start trading on Forex?
Open a demo account and trade in real conditions without fear and risks. If you do not want to study theory and read books, then you can accumulate knowledge, experience, and skills in the course of trading on a demo account.
No matter how many advantages a demo account has, trading on it does not bring you real money. If you are confident in your trading skills and understand how the market functions, it`s time for you to start trading with real funds. Using minimum deposits in your first transactions, you can control risk in real trading.
If you have learned to trade and earn a stable income on the difference in rates, the next step in your evolution is professional trading using strategies, advisors, and indicators. You can manage other traders' deposits within the PAMM system or allow others to subscribe to your trading account for copying deals within the ForexCopy service.
Should I wait for high and rapid returns? "No!" and "Not rapid" - these are the two only possible answers to both questions. Of course, there were cases when beginners scooped a large profit following the first deals. But these are isolated cases and there is no point in hoping for a similar success. Foreign exchange trading is fascinating, lively, and even hazardous way of making money! In order to provide yourself with a stable income that can improve the quality of your life, you will have to be patient and work hard. Patience can ensure that you gain the required experience, while hard work can help you acquire knowledge and test dozens of strategies and trading methods. However, Forex is not alchemy but a completely independent mathematically behavioral model that is governed by its own rules, which guarantees the result to every patient and industrious trader. Any work must have its reward and the work of a trader as well.
Can I trade on Forex without risk and investment? Yes,you can, but only using a DEMO account. Indeed, any participation in a particular financial market involves investment and risk. However, in the foreign exchange market, the amount of investment, the level of risk, and the moment of its occurrence depend only on you. You are able to trade just with one dollar or a few cents.
What are the types of accounts and how do they differ?
Standard is the most popular account offering standard trading conditions without fees but with a fixed spread per deal. Here, it is possible to start trading with any deposit size and change the level of leverage when necessary.
Eurica implies trading without spreads, due to which the BID price is always equal to the ASK price. This account is suitable for beginning traders. All pending orders are executed exactly when the price reaches these values.
Cent.Standard and Cent.Eurica are suitable for beginners who are just learning to trade. Thanks to Micro Forex, the trade size of 0.0001 in this account type enables traders to reduce their risks to a deposit. The Cent accounts are also suitable for testing strategies.
What is the forex trading software? At present, the most popular software is the MetaTrader4 and MetaTrader5 platforms. Most traders around the world use these platforms as the main technical instrument for trading in the foreign exchange market. In addition, most forex trading strategies, advisors, indicators, and signals are created precisely for MT4 and MT5.
If it is easier for you to perceive useful information by watching videos, this video training course is just for you! It covers all the key aspects of forex trading.
With a mobile app, you can learn how to trade on Forex in an easy and convenient way. The Forex training application is the best tool to get an insight into the foreign exchange market and move to trading practice as quickly as possible.
In addition to trading, there is an easier way to derive profit on Forex - investing. You can invest your money in an asset or trust another trader to manage your assets. This way, you can provide yourself with passive income.
However, investment in financial markets implies certain risks: irregular income, an error in choosing an investment object or manager. But all these risks can be minimized or avoided.
The least risky way to invest in the forex market is the PAMM system developed by InstaForex. Within this system, an investor can choose a particular trader, invest in his/her trading, and then receive a part of his/her profit. The list of managing traders is completely transparent and is presented on the PAMM monitoring page. Due to the possibility to make small investments, an investor can try working with several managing traders in a short period of time and select the most effective PAMM account.