The Forex market is considered the largest and at the same time, the most liquid market globally. The activity here focuses on trading currency pairs and daily transactions can reach up to $5 trillion. So how can an individual take part in this multi-trillion financial market? What are the things that you need to be able to start trading? Read along as these questions get their answers.
Three Easy Steps To Start Trading
Step 1 – Choosing a Trading Platform
There are 4 reputable and highly recommended trading platforms in the market nowadays. These are the eToro, IG Markets, Oanda, and TD Ameritrade.
This trading platform is known to be the most innovative one which is also equipped with the most sophisticated tools for research and trading. It also has a very user-friendly interface good for newbies. Another factor that contributes to the immense popularity of eToro is its ultra-tight spread with very minimal trading costs.
This broker is also registered in a financial jurisdiction, meaning, trading here is safe and a security breach is almost impossible to happen. It supports 47 currencies, which can either be major, minor, and exotic currencies. eToro’s best feature is the social trading option that is basically useful for beginners and experienced traders.
If you want to ensure a totally secure place to trade then IG Market is the best place for you. This platform is highly regulated by financial regulatory authorities such as CFTC in the US and FCA in the UK. IG Markets has been founded decades ago and has maintained its good reputation all throughout the years.
If you are looking for an easy to use Forex trading platform then Oanda is the place for you. Plus, their trading platform is made up of highly competitive spreads as well as great tools for analysis and research. Oanda is also widely known for its commission-free trades and trading fees that are discounted for those who do trading in a large volume.
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If you are more of a techy trader, TD Ameritrade may suit you well. This platform boasts its transparent structure of fees, offering no hidden fees and charges for traders.
Step 2: Learning About the Forex Market and Forex Trading
Have you recently reviewed your knowledge about FX trading and the market itself? What are the differences between the FX market from other financial markets out there?
There are a couple of differences that draw a line between the FX market and other financial markets. The FX market is open 24 hours, 5 days a week. It also has $5 trillion transactions per day, making it the most liquid market in the whole world. In the FX market, currencies are also traded in pairs. As for your trades, they don’t expire. They are always open as long as the trader wants it to as is.
Step 3: Opening a Trade
The first thing you have to do is to create an account from your chosen platform. Then, you have to deposit some cash so you can start to trade. Remember that you should only invest what you can afford to lose.