How Much Will it Cost to Start Trading Forex?

The forex market is the most volatile market in world and it boasts a handsome $80 billion traded every day. In order to be successful in this investment activity you must either gain the knowledge required to place your own trades or pay a professional trader the required sum to do the investing for you. It is becoming increasingly popular to trade the forex market from home as a sole trader, so in this article I am going to concentrate on the cost for that particular venture.

It is contrary to belief that you need thousands of pounds or dollars to start trading on the forex market. There are many spread betting platforms that now allow you to trade in increments as low as 10p a pip/ point, so you could quite happily start with as little as £100. Depending on your financial situation and your investment power will depend on what level you wish to invest at. You should gauge your initial investment by allowing only to invest a maximum of 5% of your balance on any one trade.

An example of this would be; if you invested £1000 and placed a trade with a 25 pip stop loss at £2 a pip your maximum risk is £50 on that particular trade or 5%. The reason this risk management is undertaken is to ensure you do not deplete your trading balance by having a few losing trades on the run which does often happen. Even with a system of 80% success rate you could still lose 5 trades on the run before having 10 winning trades.

When it comes down to training and the cost to start trading forex, again this is up to how fast you want to be trading for real money. There is enough information on the internet to self teach how to trade on the forex market but this method would involve testing what you have learnt with a demo account over a period of time. You can pay a lot of money to be taught by one of the forex gurus’ if you want to go straight in at the deep end or there is now many forex clubs available.

Forex clubs are a group of people that tend to trade together over a webinar, although your monies are kept to yourself and it is your responsibility to physically place the trades, entry and exit points are normally done together. These clubs are coordinated by a professional trader who will suggest entry and exit points and it is up to the individual trader to act on their information. This method of group trading is a great way of sharing the cost of the professional and often enables beginners to start trading straight away.

The Reasons Why A Beginner Trader Should Start Trading Forex Today

Trading forex is a great way of making some money either if you do it as part-time or full-time. There are millions of trades done by countries everyday and there is more than enough space available for anyone to get a piece of the profits pie.

When trading the markets its very important that you use the right trading software to make profitable transactions. In this article you are going to get guidelines on how to make it big trading forex.

The meaning of Forex

Let’s first look at what is forex. Forex trading is the exchanging of currencies from different countries all over the world. The events that happen all around the world play a role on how strong a single currency can be and how much money you can make depends on the successful profitable trades you’ve made in a particular day.

Here are some reasons as to why you should start forex trading today:

– You don’t need a lot of money to start trading and at the same time you can make lots of money even if you’ve put small capital. Some companies offer leverage of 100 to 1 which means you can still some profitable trades with $50.

– The world we live in is very huge resulting in lots of trades made per day by various countries. This means you can make a lot of trades with just one click of your mouse. And this is done by a lot of people around the world.

– Trading online can be done anytime of the day and anywhere in the world. So this means you can still have your 9 to 5 job then do some trading in your spare time. The world never sleeps.

– You can start trading the currencies with no real up front money although you also won’t be making real money as well. There are online companies that offer demo accounts or free trials for beginners to use to feel the markets. This is the recommended way to learn about trading before you use real money.

– One way of making profitable trades is to use autopilot forex trading. A lot of successful traders use autopilot forex trading to help them make the most safest transactions while they sit back and relax. But you should know that this form of trading requires you to have lots of experience trading and is not wise for a beginner to start with.

So when starting out take your time to know the markets then with time you will start making more and more profitable trades. Don’t worry if you lose some money its happens to everyone at some point, but make sure you learn from it.

Let’s Start Trading On the Forex Currency Market

The beauty of trading on the Forex Currency Market, is that you have the flexibility of trading from literally anywhere in the world!

All that is required is a laptop and an internet connection, and you are ready to make some serious money online.

In respect of training or specific requirements, there isn’t really anything necessary.

All that you really require is a good training manual be it via video or eBook, and that should be enough to get you going and to start trading Forex.

But why trade in Forex?

What is so special about this type of market in comparison to say the stock market?

OK – well here are the main reasons why you should trade in Forex:

Forex trading offers monetary leverage. In basic terms this means that you can trade with a very low capital outlay and can control a very large currency position. You can trade a standard of $100,000 currency lot by investing a very small amount of capital to the value of $1000. And believe it or not, some forex brokerage firms even allow you to trade with even less capital – by giving you up to 200 times the leverage. So let’s say that all you can afford is a mere $100 – well you can probably control a 200,000 unit currency position.

The other great thing is that online forex trading has very low transaction charges, even if you have a mini account or trade in small volumes – which is not quite the case when trading on the stock market.

Another important factor to bear in mind is that forex market transparency is an advantage since there are no hidden figures. Basically you get what you see and there are no hidden or unexpected surprises. The beauty of this is that it enables you to manage your risk and you can control your order within seconds if you want to stop further losses in a particular trade.

The forex market also allows you to trade in any direction, that is, whether going up or down.

Real time is one of the many advantages in forex trading. The forex market never closes as it is a constant electronic currency exchange taking place universally. Let us remember that this is a worldwide trade, involving a huge array of currencies, currencies of various nations.

It operates 24 hours a day, thus allowing you to enter or exit a trade whenever you like. So this enables you to trade whenever you have the free time and as long as there is an internet available anywhere.

As you grow in experience you can and will earn extra income by profiting from this sort of online trading in foreign currency. And if you trade in a smart fashion, by using the various analytical tools available to you – you can profit by predicting the outcome of a trade based on observing the changing trend of a currency which normally repeatedly shows up in predictable cycles.

I will end this by saying that there is an unlimited earning potential when you trade in Forex.

It currently has a daily trading volume in excess of 1.5 trillion. This makes it the largest financial market worldwide when compared with the equity and futures markets of 50 billion and 30 billion respectively.

If you wish to take this further and if this article has incited some sort of excitement within you, than please have a look at my resources box as a start to making it in the online world of Forex Trading.