Forex trading is the way, to get some quick cash online. This
is due to the fact, that anyone with a smartphone or laptop connected to the
internet, with little basic about currency trading and exchanges, can become a
Forex trader and start to make money online. Forex, foreign exchange or the FX
market, is an over-the-counter market where the world’s money is exchanged.
Many players trade the Forex market, such as institutional investors, central
banks, multinationals, and commercial banks, among others. As a retail trader,
you can access this market with a Forex and CFD broker and make money by buying
or selling currency pairs. Forex is the market that never sleeps. It’s active
24 hours a day, 5 and a half days a week, which means that you can trade at a
time that suits you.
If you’re serious about learning how to trade forex, you should start to get a handle on forex terminology by reviewing the definitions for common terms used in the forex:
Forex Glossary - List of Forex Terms
5 Easy Steps to Start Trading Forex:
1. Connect a device to the internet
First, you’ll need access to a reliable Internet connection with minimal service interruptions to trade through an online broker. You’ll also need to obtain a smartphone, tablet or computer to run a trading platform on. If your internet drops while you’re trading, that can result in undesirable losses if the market moves against you.
2. Find a suitable online forex broker
Open an account with an online forex broker. Just look for
one that meets your requirements as a trader and will accept you as a client.
At a minimum, the broker you choose should keep your money segregated from its
own and operate in a well-regulated jurisdiction under the oversight of a reputable
regulator.
3. Open and fund a trading account
After you’ve decided to start trading, you can deposit funds
into a trading account. Most online forex brokers accept a number of ways to
fund an account, including bank wire transfers, debit card payments or
transfers from electronic payment providers (Skrill or PayPal).
4. Obtain a forex trading platform
You will need to download or get access to an online forex
trading platform supported by your broker. Most forex brokers either offer a
proprietary trading platform or support a popular 3rd-party platform like
InstaForex, Dukascopy or Vantage FX.
5. Start trading
After completing all of the previous steps, you now have a funded forex account and are ready to trade. You can also usually open a demo account funded with virtual money to test out the broker’s forex platforms and services before going live. Demo accounts are also beneficial for testing trading strategies and to practice trading without risking any funds.
Best Forex Trading Platforms
- CMC Markets: Best overall forex trading platform and best for range of offerings
- London Capital Group (LCG): Best forex trading platform for beginners
- Saxo Capital Markets: Best forex trading platform for advanced traders
- XTB Online Trading: Best forex trading platform for low costs
- IG: Best forex trading platform for U.S. traders
- Pepperstone: Best forex trading platform for trading experience
