Trading Forex might sound intimidating, but it’s not if you have the right tools and know where to ask. This is a simple guideline for you to start on the right foot.

 

The internet is the place.

Forex (foreign exchange) is a decentralized trading market that operates on the internet 24/7 (excluding Saturday and Sunday). Therefore, the internet is one of the best spots to get acquaintanced with how everything works and read (or listen), what others have to say about it. What we want to say is that you should learn a bit and research before you open an account at all. Bear in mind that you should skip opinions on Facebook from friends that don’t trade at all, or were victims of scams. Yes, scams do exist, but that’s why you will focus on websites that are trustworthy and compile a list of regulated companies, where they are trying to prevent this from happening. The best thing about online trading is that it’s not for rich people only. Nowadays, you can invest a small amount of money and start learning and trading.

 

While we’re at it, what about scams?

Depending on where you are located, there are websites which are authorized to compile data or rather company names that are regulated. Therefore you don’t have to worry about being scammed if they are on their list. Even if something goes wrong, you can rely upon there to be protection measures. When we are talking about brokers, since you will need one as well, it’s enough to check their online platforms. If they cannot be found, or they have barely one decent profile where reviews are wrong, it’s a sign never to contact them again. A professional broker will have LinkedIn, sometimes Twitter, and many other ways to get them and see various reviews that can paint a picture for you. Forex broker selection is not easy, but once you select a broker that fits you best, getting into Forex itself will be a much better experience, and you will have the support from a person that has much experience in the field.

 

Opening an account

Same if you want to have a credit card instead of using cash, you will need to open a trading account that will serve only for any market trade. You will usually have to provide some identity proof, like your ID and utility bill. To open an account, you need to invest a small amount of money (the amount varies from brokerage to brokerage), but this doesn’t mean you have to trade with it right away. This means you put a specific deposit and you can now choose if you want to start with a demo account, that is free, and you are not trading with the money you put into the trading account. It’s a good option if you are a complete beginner since you can see how everything works, what happens if you buy or sell something and how Forex works in general. Once you start live trading, this means you will use your own money, but it still doesn’t mean you need to use the whole amount you have on your account. Of course, you can add money to that minimum, or experiment with only a few dollars. What’s certain is that you shouldn’t invest more than you can bear to lose, and every good broker will advise you the same.

 

What is your goal?

In the end, your goal should be the most important thing. Why are you interested in trading? Do you think it’s something you will be in for the long run, or you want to hit the jackpot and get out of it? Whatever the case is, you should take your time and invest it in learning first, consult with your broker what type of trading plan would suit you best and remember that trading is something that can bring you lots of benefits, but in the long run and with patience. You want to treat your trading account like you treat your general earnings.