What is the Forex market? The foreign exchange (or “forex”) market is one of the largest financial markets in existence that grows rapidly. That is why it’s no surprise that many people are looking for ways to break into this exciting but difficult-to enter profession as a trader.
All they need is a guide to know from which point to start. Well, if you are looking for that – here is it. Let’s start our acquaintance with the forex trading world using this article as an ultimate guide.
What is Forex trading?
The forex market never sleeps because it is the largest and most liquid financial product in this world. It is available 24 hours, 5 days a week and divided in 4 time zones (Tokyo, New York, London and Sydney). This creates the opportunity for everyone in the world to trade.
Unlike other assets, foreign currencies are traded in pairs. It means that while trading you buy the currency and sell another one.
How to start trading forex?
Take these steps to start forex trading:
- find a reliable forex broker
The broker you will choose must keep your money safe and be regulated by certain authorities. If you are a novice trader and are not sure about broker type – choose the one which is connected with minimum risks. There can be no deposit bonus broker that offers no-deposit bonuses to trade without funds in a trading account. These brokers usually run many promotional offers for distributing bonuses, yet some regulators prohibit them. However there are some brokers that are allowed to promote bonuses including no deposit bonus forex Kenya.
- open a trading account
When you choose a broker, you will open an account. You can do this via bank wire transfer, debit card payment or using an electronic payment provider.
- acquire with a trading platform
You will need to find a platform to trade forex on that your broker supports. Most brokers have their own proprietary trading platform, or they support popular platforms like MetaTrader4 and 5. These platforms can be downloaded or accessed online.
- open a position and start trading
Now that you have followed all the steps, you have a funded Forex account. You can use this to trade. You can also open a demo account which is funded with virtual money so you can try out the broker’s Forex platforms and services before trading with your own money. Demo accounts are also helpful for practicing trading without risking any funds.
Forex trading can seem daunting if you are just starting out. But it does not have to be complicated.
You should keep in mind that whether you are just starting out or have been trading for years, there is always room to improve.
In fact, we have outlined the basic steps for you right here. So why not check them out and start trading today? Take the risk and do not waste your time – start your trading journey as soon as possible. For starters in Kenya, see the best forex brokers in Kenya.
George is the Chief Market and Broker Analyst at brokertested.com. Prior to being recruited by brokertested.com, I served SVS Securities as Chief Market Analyst for two years. Earlier, he joined Morgan Stanley in Nov 2013 as Research Analyst.
George is a well-rounded financial services professional experienced in fundamental and technical analysis, global macroeconomic research, foreign exchange and commodity markets and an independent trader.