How to make money with currency trading
Forex is an international market where currency is the main commodity. Dollars are bought for Euros, Euros for Dollars and so forth. Thus each currency pair is a separate instrument. Forex market is open 24 hours a day, 5 days a week.
Many people would like to try a currency trading, but they don’t know where to start. That is why we have prepared this information guide.
How to start trading on the Forex market?
Forex is one of the largest global markets. At the same time, most of its participants are private traders who profit from changes in exchange rates. Simply put, the universal principle of trade "buy cheaper, sell it better" works here as well. Everyone can become a Forex trader. Neither a level of education, nor an employment level or a welfare matters here.
It’s better to start trading on Demo or Cent account.
What are the types of accounts?
• Demo account helps you to practice in trading without any investment. This is a training account which allows you to get some experience in trading, get acquainted with all the features of a program for trading on Forex, learn to navigate in the real foreign exchange market, try out trading strategies.
• Cent account - a deposit is displayed in cents. The owner of a cent account does not need to deposit it with $1000, as it was on a traditional dollar account.
$10 are enough to get ¢1000.
• Mini account - trading on this account type is executed in standard lots. It is no longer measured in cents.
• Standard account - the most popular account type among traders. You have an access to a standard lot of 100 000 units of the base currency.
• ECN account is suitable primarily for trading intraday with frequent entries and short transactions. Purchase and sell orders are executed automatically.
Choosing a Forex broker
To start trading on Forex, you need to choose a reliable broker, which will ensure you an access to the market. There are a lot of brokerage companies, and you should choose well-known ones and those which have been working for a long time. They have many clients and they will not risk their reputation.
One of such companies is JustForex. The broker has been working on the market since 2012 and has an official regulation. It is available for a partnership in 197 countries, offering profitable conditions.
You can open both Demo as well as one of real trading accounts and start working with JustForex broker right now.
Types of Forex trading strategies
• Short-term trading, or scalping, assumes that a trader tracks small volatility of the exchange rate within a short time - not longer than a day, and more often - several hours.
• Medium-term trading keeps an open position up to several days, or even a couple of weeks.
• Long-term trading is a strategy in which the deal remains open from a few weeks to several months.
Once, you have decided which account type you would like to open, you need to download a trading platform. You can do it for free on the official website of JustForex broker.
How much money do you need to start trading on Forex?
Since the financial possibilities of all people are different the deposit will be different too.
The best choice for a newbie would be a cent account with the sum of $10. Having traded on foreign exchange market for some time, you will basically understand whether you are interested in Forex or have enough time to do it.
