How to join Forex trading?
How to join the world's largest financial exchange market and start earning by trading with the major market participants.
What is Forex?
Forex (Foreign Exchange market) – the world's largest financial market, where different currencies are exchanged against each other. Daily transaction volumes of the Forex market are, according to our estimates, as high as 3-4 trillion USD. Compare this to about 25 billion a day volume of the New York Stock Exchange.
Among all financial markets, Forex is the easiest to access for beginners and retail traders with relatively modest money to spare.
The major participants of the Forex market are commercial and central banks, large corporations and hedge-funds. However, you do not need to have millions or thousands of dollars to start! Due to leverage and marginal trading, you can start trading with $100 or $500 and enjoy the same trading conditions as the large market players. There are even Micro and Mini accounts that let you trade with as little as $1.
Unlike stock futures market, Forex is does not have a central location, where trading normally takes place. Banks and other market participants are connected to each other via electronic communications networks (ECNs). Forex trading continues 24 hours aday, 5 days a week from Monday to Friday. This decentralized structure allows traders to buy and sell currencies without extra fees and commissions. It also provides access to trading anytime and from anywhere in the world.
8 reasons to choose Forex:
- High liquidity and best prices. In Forex there are always traders who are willing to buy or sell. The market never sleeps. An ECN Broker offers its clients the best quotes from major banks, other ECNs and liquidity providers. The Broker actually profits from providing the best quotes and the tightest spreads.
- Access to trading 24/5 from anywhere. The market trades 24 hours a day, 5 days a week from Monday to Friday, and your broker offers you support 24 hours a day. You can choose when to trade – the European, US and the Asian trading sessions follow each other. When trading sessions in different time zones overlap, the available liquidity in Forex reaches its maximum.
- You can trade with as little as $100! Starting deposits in Forex are considerably lower than in other financial markets. Leveraged (or marginal) trading used in Forex lets you operate funds many times as large as your margin deposit.
- And the broker is interested in your profits. In the ECN model, you trade with other market participants not against your broker. To execute your order, the ECN Aggregator will find a matching opposite order (same price and available volume) from another market participant. The broker charges a small commission for transferring your order to the ECN and finding a match for it. With this business model, the broker is not trading against you and does not profit when you lose. On the contrary, the broker receives more commission when you increase your trade volumes.
- In Forex, there is always a chance to earn. Stock markets can crash and securities may lose their value but when one currency is depreciating, the other will be gaining value and you can earn on that as well.
- Market Analytics are easy to follow. There are only 4 major currency pairs in Forex. You can choose just one currency pair or several pairs to focus on. Monitoring news and market analytics for 4 currency pairs is easier than struggling to keep an eye on thousands of stocks.
- Education and Training for Beginners. Broker provides you with demo-accounts, training courses and workshops, video tutorials, news, charts and market analytics so that you can practice your trading skills.
- Automated trading. You do not have to spend long hours in front of your computer studying charts and following all the price movements. With automatic indicators and signals you will be notified immediately of any important events or trend reversals. You can also take advantage of expert advisors, that are based on your own or somebody else's proven trading strategy. An Expert Advisor trades automatically without your participation.
To join the Forex market, all you need is:
- a computer, mobile or tablet PC with high-speed Internet
- a trading terminal
- an account with a Forex brokerage company, that will execute your buy and sell orders