How best to start with Forex? In this article we aim to provide a series of useful tips to better enjoy the investment experience on the currency market.
Mistakes, especially for beginners, are around the corner. Avoiding them or at least recognizing them is already a great step to start.
The first recommendation is to choose a high quality broker , with the possibility of operating on Demo and later also with a small capital.
The Iq Option and ForexTB trading platforms fully represent what we need.
Furthermore, studying the mechanisms of the market and taking a positive psychological attitude are elements of great help in being successful in this world.
Getting Started with Forex – Beginner’s Guide.
The English term “forex” is the abbreviation of FOReignEXchange market, which means foreign exchange market . The forex market is therefore the currency exchange market, in which different currency pairs are exchanged through an exchange rate.
It is currently the largest liquid market in the world and billions and billions of dollars are traded in Forex every day. To operate at its best, it is therefore appropriate to know the protagonists of this huge market.
The protagonists of the Forex market.
Banks: Even if the forex market is completely decentralized, it is the big banks that, working millions of transactions for themselves and for their customers, determine the exchange rates of the currencies.
Governments and central banks: such as, for example, the Bank of Italy or the American Federal Reserve, they also contribute to the large forex market. In particular, they can affect prices when they adjust interest rates in order to control inflation, or by carrying out massive currency trading operations to realign exchange rates.
Speculators: That is, small and large investors who try to profit by exchanging currencies.
Peculiarities of the Forex market.
In fact, unlike traditional forms of investment, forex trading has the following characteristics, among others:
No commission: Most brokers cover service costs thanks to the so-called spread between supply and demand.
Minimum access capital: In forex trading we can determine the size of the lot, or the position. In this way it is possible to buy and sell currencies starting from a minimum investment. For example, the Iq Option broker allows you to trade for as little as € 10. In this guide we will explain how to make the best use of a small capital for our trading account .
Leverage: Thanks to leverage, in forex trading it is possible to control very high value contracts. In fact, leverage allows you to move large quantities of currency while keeping capital risk to a minimum. For example, if our forex broker offers a leverage of 100 to 1, it means that with 100 dollars it allows us to buy or sell 10,000 dollars of currency. In this article you will find an interesting study on the theme of leverage .
Getting started with Forex – The first steps to investing in currency trading.
Study the markets.
The first step to take is undoubtedly to study the market where it will operate. In trading as in any other business, you need to know exactly where you “work” daily.
Below, we suggest a free course that really teaches the foundation of forex from A to Z.
The ForexTB platform is the one that offers the largest offer in training. Webinars, courses and educational materials, the offer is really wide. Above all, the quality is very high, so much so that the Ebook of this broker turns out to be one of the most downloaded nationally.
No less important aspect, it is available for free even for those who are not yet registered on the platform. Below, the link to download it and start studying.
To download the educational material offered by ForexTB click here.
Each trader has taken the first steps on a Demo account, where he can operate with virtual money by faithfully replicating what happens in real markets. The practice on the financial markets is very important and is the only step that allows the Trader to learn concretely to operate on the markets and to speculate on the stock exchange successfully .
Again, the best platforms offer a free demo account to allow the Trader to become familiar with Forex. It will be appropriate to make the most of this phase as it represents a very solid basis for our future career as a Trader.
Obviously, since it is virtual money, the psychological component fails. In this case, it will be advisable to take courage and switch to real account as soon as you feel ready. Only in this way will our trader career begin.
Adopt adequate Money Management.
The psychological aspect is of great importance in Trading. In fact, once they have moved from Demo to Reale, Traders quickly realize the psychology difference in managing open positions. The fear of making mistakes or the greed of wanting to earn more and more takes over.
How can we get around this? The best trick to managing these feelings while trading is to adopt a Money Management strategy . This word indicates a correct risk management approach and is a less complex concept than you can imagine. Doing money management means dividing the available capital into small portions , usually never exceeding 5% of the total capital. In this way, our capital will be preserved with the aim of making it last as long as possible. In this article you will find other interesting tricks to operate at best on forex .
In order to gain experience and test our strategies, the best brokers now allow you to operate even with a few hundred euros. Even the Iq Option broker allows you to open a real account with only € 10 . As a result, modest initial capital and well-structured money management make the risk truly minimal .
Getting started with Forex – The best brokers.
ForexTB is an extremelyserious and professionalfinancial investment platform. It is often mentioned by the most reliable insiders within the panorama of the sector brokers. Over the years, they have demonstrated in the field to combine an excellent financial offer withgreat transparencyin terms of compliance with the regulations in force and its customers.
The minimum deposit to open a live account with ForexTB is 100 euros. To finance your account you can choose many ways including credit or debit card, bank transfer, virtual wallet.
License and regulation.
From an administrative point of view, the reference group is called Rodeler Limited operating under license number 207/13 issued by the Cypriot Investment Firm (“CIF”), an entity regulated by CySEC. It is therefore a broker in line with the Mifid Directive . These entities regulate the supply of financial and investment services in an iron manner and whose related licenses guarantee, in a certain way, the high profile of an authorized company.
Among the most appreciated features offered by the ForexTB broker we include the possibility of receiving excellent trading signals for free . In practice, these are precise indications on particularly interesting market conditions. These signals have a really high level of reliability , services with such accurate forecasts usually have a monthly subscription cost of over 1,000 euros. In the case of ForexTB , however, the service is completely free.
Click here to receive the trading signals offered by ForexTB.
The Demo account.
The demo account is simply a virtual program for trading on the stock markets. All investments on the platform will be made with a virtual currency so we will not be subject to the risk factor. In this way we will be able to fully understand how the platform works and to focus on all the dynamics that this market presents. The ForexTB demo platform is free and unlimited .
Click here to start trading Forex with ForexTB.
IQ Option represents a perfect example of how you can trade in thehigh-level online financesector, constantly growing from an operational point of view and over time gaining the trust of millions of investors around the world. To understand more clearly the operational scope of this company, just take a quick look at the reference numbers. The company data speak of11 million usersworldwide, with3 million transactions per dayand a monthly turnover of 10 billion dollars.
License and regulation.
This financial platform meets all the security requirements of European investment and financial markets legislation. The company is in fact registered in Cyprus with the CySec supervisory authority, with the license number 247/14, issued in 2014. This authorization allows to provide financial services throughout the European territory. For this reason, IQ Option is also officially included in the national registers of the financial authorities of the most important EU countries, including Consob in Italy.
The Iq Option offer.
Among its most important strengths we certainly include the ease of use of the platform. Not least the free course offered to all members and which guarantees a very solid preparation. In addition, a typical feature of this broker is the ability to start trading real for only 10 euros, in addition to an unlimited and free demo account. The number of assets available on this platform is not very high, it has around 100 financial instruments available. However, it is still optimal given the careful selection of Assets and the operational variety to which users can refer. In fact, we find commodities, indices, shares, currency pairs, all listed on the stock exchanges of national and world markets and ready to be included in your online financial investment account.
We have seen so far how “simplicity” is the password for this broker, which also from the point of view of payments offers one of the easiest and most functional services in the sector. All operations have a rapid approach , both as regards withdrawal and deposit.
Click here to trade Forex with Iq Option.
Getting Started with Forex – Conclusions.
In this article we have seen how important the preparation and experience is to operate successfully on the markets. However, we would like to once again specify the importance of operating only on regulated and certified platforms. Unfortunately over the years there have been cases of less serious brokers who risked ruining the image of the entire sector. Trading is a solid and regulated world and choosing a reliable broker is the first step in starting a path in this sector.