Considering there are more people entering the market now than ever before, there has really never been a better time to trade Forex. This increase has been brought about by the online trading boom which has developed in recent years. Massive advances in household IT have led to more people than ever trying their hand at trading. When you approach an online broker the first thing you will have to decide is whether you want to start with a Forex practice account or go straight for the real deal.
First lets’ outline the difference between the two. A Forex practice account basically let’s you make trades without risking any real money (or gaining any real money). The practice account is updated in real time with real Forex information allowing you to see how your trades would have worked out had you made them with a standard account.
A standard account means you can start trading with real money. Typically your online broker will need a deposit before they open your account; this can range between $1000 – $10000 depending on the broker. Of course trading with a standard account means you can finally start profiting from your trades but there is also a great risk of loss.
So which account do you choose?
Well that all really depends on how confident you feel about your trading strategies, your funding and the quality of your contacts. Certainly I would recommend that newcomers start with a Forex practice account to verify the effectiveness of their approach. When you begin to trade with a standard account it might be a good idea to make relatively small trades at first or you could try opening a Forex mini-account. A mini-account is a real Forex account but can be opened with only a very small deposit, usually less than $1000, and allows you to make small trades.
Whichever way you choose to start trading Forex is an exciting and dynamic industry. In the end your success will be determined by how hard you work and the intelligence of your trades.