Forex trading is a excellent idea to make money. It’s also an easy way to lose money if you don’t know what you’re doing. The great news is that it doesn’t need much knowledge or experience in order to be successful at it. If you follow these three steps, we are confident that your forex trading will go smoothly and you’ll be able to enjoy the benefits of being a trader on the cheap!
Step One: Choose a Broker
You’ll need to choose the type of broker you want. There are many types such as ECN (Electronic Communication Network), STP (Straight-Through Processing) and so on, but if you’re just starting out it’s best to go with an ECN broker. They tend to have lower fees than others which will help save your money!
You can compare brokers at sites like ForexPeaceArmy or FXStreet for more information about what they offer in terms of pricing, account size requirements, commissions and other important factors that might be helpful when determining who is right for you. If all else fails, ask friends or family members who trade forex for their recommendations too – most people are eager to share their broker with others and they’ll be able to provide you a first-hand description of what it’s like.
Step Two: Open An Account
Once you’ve decided on your type of broker, open an account online or over the phone (depending on which one most beneficial suit your needs). You can find out how much money is needed by reading the company information page that should have been linked in Step One or asking someone from customer service who can walk you through the process.
For example, if I was starting up my own ECN forex trading account with FXCM then I would need at least $250 ($100 for mini accounts) but as little as $25 for micro accounts. There will also be a monthly minimum amount that you need to deposit so be sure to look for it.
Step Three: Start Trading!
Now the fun part begins – start trading! Take a few minutes and read up on how forex markets work (you can find tons of information online or in books), then get started with your account. You’ll probably want to open positions at different times during the day, but try not to overextend yourself when just starting out by opening too many trades. It’s best if you limit yourself to three active trades per week until you’re more comfortable with what is happening in these markets. If you’ve been reading about Forex trading before getting started, this shouldn’t take long because there are only two major currency pairs (the US Dollar to the Euro and the Japanese Yen) plus a few dozen other lesser-known money.
By pursuing the points in this article, you can become a successful forex trader on a budget. Forex trading is not an activity that requires large sums of money to start and participate in. You should have no problem finding success with these tips for cheap traders! Tickmill is the best place for forex trading!