Up until quite recently only large banks and financial institutions were able to trade in the Forex market. Today, anyone with an Internet connection and a modest amount of capital can trade currencies from their home or office.
You can make a rough comparison between the behavior of the different currency pairs in the foreign exchange and the price movements of stocks. As the economies of countries around the world fluctuate, so do their currencies. The astute trader can take advantage of these fluctuations and make a profit by accurately projecting the direction in which they’re heading.
Unlike the stock market, the FX is active twenty-four hours a day, five-and-a-half days a week.
Free Trading Platforms and Free Forex Software for Forex Trading Online
Most Forex brokers offer free Forex trading platforms that you can download and watch as the prices change in real time. Some of these platforms even include rather sophisticated software. Top Trading Online Suppliers Comparable software for trading stocks and commodities was sold for hundreds of dollars in the past
If you’re not familiar with the Forex you can begin to learn how to trade currency online for little or no money. Most people start with a demo account so they can get a sense of trading without risking real money.
You can even begin your Forex education by searching the Internet for free trading information and, if you feel it’s something you want to learn more about, there are plenty of eBooks and software you can buy before you risk any of your money trading.
The Forex market has been around for a long time and is not going anywhere, so there is no rush to gain a proper eduction before actually trading. You will be trading against some of the sharpest minds in the world. In order to be successful you must be prepared.
Some Forex traders trade the news, some base their trades on technical analysis, and others speculate based on a combination of the two. Some Forex firms will help new traders learn Forex trading online by offering free demos, courses, and news feeds along with their quotes.
How Much Money Do You Need to Trade the Forex?
Once you have a basic understanding of the market, a trading strategy and a money management plan, you can begin to trade with as little as several hundred dollars. It’s not unusual to feel a bit uncomfortable at first, but within a few months you might feel like you’re an old pro at trading.
Although it’s possible to earn a lot of money trading the Forex you will have to risk your capital to make it happen.
Most professional traders recommend that when you first start trading you trade for minimal amounts of money. And, whatever your level of expertise, they’d stress that you risk a very small percentage of your capital on any given trade. Five percent is considered a large percentage. Many individual professional traders risk approximately two percent or less of their available trading capital per trade.