The first steps to getting started in forex

Forex also known as foreign exchange or FX is a global over-the-counter market for trading currencies. If you're thinking about trading, you should know first that it's not a 'get rich quick' scheme and it may take some time to learn the terms and how things work. If you are serious about forex trading, check out our steps below.

Consider opening a demo trading account first

Before you dive into the world of forex, it is advisable to consider opening a demo account first. This will allow you to get used to how forex works, and will prepare you for when you decide to invest real money. A demo forex account allows you to 'trade' using real-time statistics, gaining experience before you become more confident when you open a real account.

Think about hiring a broker

It's always a good idea to get professional advice before you make any major financial decisions. There are several experienced forex brokers from which you can choose. Brokers will compare different trading platforms, from mobile to websites. Make sure that the broker caters for all suitable trading instruments, such as cryptocurrency, stocks and securities. Research reviews and websites such as https://exness1.org/review/ to choose a reliable and trustworthy broker. It's also a good idea to find out about their minimum deposit and whether they can offer you a demo account. 

Have a diary handy

An electronic or paper diary will help you a lot in your forex journey. This will help you keep track of any events or announcements that occur weekly, monthly or annually. You will need to note when the data is published, if you do your research you will be able to find pre-published dates. By writing down the important stuff, you will be able to keep track of everything and grow your portfolio.

Get to know the language of Forex

When learning something new, you will always find that there is a lot of jargon or a certain language that you need to get used to. Learning the language of forex will help you read the market properly and have important discussions with experienced traders. Start by reading articles about forex and after a while you will start picking up phrases and words that are used regularly. You may come across a few keywords: trading margin, currency pairs, spread and exotic currency pairs.

Setting up a Forex Trading Account

Once you have learnt the jargon and become accustomed to using a demo account, it's time to set up your forex trading account. Setting up a forex trading account will allow you to access the market and make trades in real time. If you hire a broker, they can help set this up for you and help you start making the right trades and transactions.

Find out how a forex calculator works

Forex is very mathematical, but don't let this scare you, if you are bad at maths there is a calculator that can help you. Unlike a standard calculator, a forex calculator allows traders to calculate risks, profits and losses. There are many to choose from on the internet, so find one that you understand.

Decide which type of account you want

You can have two types of accounts: personal or managed. A personal account is where you manage all trading yourself, whereas a managed account is where you trust an account manager/broker to make trades and trade on your behalf. If you are just starting out you will benefit from a broker, stick with those brokers that offer realistic returns.

How much should you invest?

When getting started in forex, it can be difficult to know how much is best to start with. We think that starting with £100/$100/€100 etc. etc. is a good starting point. You may open some accounts for as little as £5/$5/€5 etc. etc, but you won't see much financial growth from such a small amount. You can start with any amount you wish, however we think that just sticking to £100 / $100 / €100 etc. etc. is an excellent amount as your risk is quite low. If you trade correctly and intelligently, you can expect to make several thousand in profits. 

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