How To Start Forex Trading.
What is Forex Trading?
Forex is the short form for Foreign Exchange. The Forex market is also referred to as FX market in short. Foreign currency trading is performed in a separate market which is specially made for forex trading. This market is open 5 days a week from monday to friday round the clock. In this article I will explain How To Start Forex Trading For Beginners.
Forex trading market is the largest market in the world. Daily trillions of dollars are traded in forex market. There are many trading exchanges worldwide in cities such as London, Frankfurt, New York, Tokyo and Sydney. The operation of forex markets worldwide make it available 24 hours a day. Trading can be done by telephone and through the internet from anywhere in the world.
Before 1998 the Forex market was only for large financial firms, trading companies and banks. Since 1998, the Forex market is open for everyone. Now every individual can do forex trading. No doubt large traders are still financial firms and banks but individuals can also do forex trading now.
The basic purpose of Forex market is to facilitate the trading of different currencies by the central government, commercial banks and other investors.
Currencies involved in Forex trading.
These are the major currencies which are involved in the forex trading business.
US dollar (USD)
British pound (GBP)
Japanese yen (JPY)
Swiss Franc (CHF)
How to Start Forex Trading:
Here is the step by step guide for beginners who want to start forex trading or who want to know about this business. This is the basic guide.
- First of all you will need investment in the beginning. You cannot trade without money. It is the money which will be traded and you will need money to trade it. However you can start it with as little as 10$. There are cent account available for small investores.
- You cannot link yourself directly to forex market. You will need a forex broker which will connect you to the forex market. There are many forex brokers available. Here are few which are trusted and paying. Exness, Hotforex, Instaforex, eToro. You will make account on forex broker website and broker will link you to the forex market.
- You will need a software called MetaTrader 4 for trading. Your broker will provide you the software and you can install it into pc, laptop and you can also install it into your android or apple mobile phone.
- You will then need to deposit money into broker account. You can directly deposit from your bank account or credit or debit card. But if you do not have bank account you can deposit through paypal or skrill also. Skrill is like paypal and you can buy skrill or paypal dollars from local exchangers and then deposit these dollars into your forex broker account.
- Now you can start trading on MetaTrader 4.
Remember this is just the method of How To Start Forex Trading. You have to learn strategies to earn from forex. You cannot earn without experience.
The brokers also provide demo account. Before depositing money and starting real trading you should practice on demo account.
There are so many scammers on the internet which are always looking to steal your money. Be careful and do not send money to any person without verification and trust. Meet him personally and then buy dollars from him. If you cannot meet then do transaction with a person who have real FB id and real mobile number etc.