Online trading Forex means that you can now manage a successful Forex trading career from the comfort of your own home. The resulting massive expansion of the market has led to the emergence of a dizzying array of Forex software, online brokerages and white label services. Allow us to present a step by step guide to setting yourself up as an online trader.
If you’re interested in online trading Forex you first need to contact a reputable Forex Broker. Your Forex Broker will offer you an account so you can start trading. A standard Forex account requires an initial deposit to open, usually between $1000 and $10000.
Your Forex broker will also provide you with trading software, in most cases Metatrader 4. Metatrader 4 has a lot of qualities that make it ideal for new traders. Firstly Metatrader 4’s design emphasizes accessibility over all other features, with an easy to use interface and a range of language options it has found success with traders of all levels and backgrounds. Demo mode enables traders to devise advanced strategies by making trades against real time Forex data but without the financial risk.
Many veterans of online trading Forex rely on algorithmic trading to save time and improve their spreads. Algorithmic trading works by setting parameters for when your chosen trading platform should buy or sell a certain currency or commodity. For example you could set it so that if the Euro fell to a certain level that you automatically start buying Yen. Algorithmic trading can be extremely profitable if it’s handled well but it’s definitely a good idea to test any new approaches thoroughly in Demo mode before you try them out for real.
The best advice we can offer anyone new to online trading Forex is to listen to the council of their Forex broker. They want you to succeed just as much as you do so let them help you!