Forex Trading
Here’s an article that covers some basic of the forex world. Just a general overview of the offers that you may see on the internet.
Forex
The forex (Foreign Exchange) is the currency market. Forex trading is currency trading. You trade currencies by pair : EUR/USD (euro/us dollar), USD/GBP (US dollar, Great Britain Pound), etc. Forex trading is not easy to understand if you don’t know anything about trading. You can find a lot of Forex informations online, just check some of these pages we selected for you.
The Internet made it possible for invidual to trade currencies from home. The Forex market is the biggest financial market, bigger than the stock market and a lot of people now are trading forex online and are making money. But that’s not easy !
Even if online Forex trading is a great opportunity to make huge money online, this is not a game. Yes you may make $1,000 in 5 minutes, but you can also lose these $1,000. Actually if you plan to become a forex trader from home, you better do your homework first. You will need to develop the forex trader skills and one essential is risk management.
Forex trading also has its own vocabulary. You will have to learn what are forex signals and what are the forex charts indicators that will help you.
Check the free forex ebook made by Easy Forex. Many brokers on their website also have free forex trading education suchas courses and tutorials that will teach you all the basics of trading.
Forex Demo
My second recommendation is to practice a lot. Your forex broker will let you open a free forex demo account and you will trade the real time forex market. Of course this is not real money. I suggest you practice for 3-6 monthes before starting trading forex with your own money in a live account.
You need to know that forex brokers requires a minimal investment to open a forex live account.
If you really want to become a forex trader and from your home, you must be patient. Learn to manage risk and practice currency trading a lot with a demo account.
All Forex brokers offer a demo account so you can get familiar with their website, platform and environment before you think about trading live. Here is a list of the Forex brokers we recommend.
Forex Signals
If you had to start forex trading right now without education and strategy, you don’t know when you have to place a trade, when you have to exit it. You can sign up for forex signals subscription. It will cost you few hundreds of dollars a year, from $200 to $1000, it really depends on the signal provider. Or you can also subscribe for one month or one week of forex signals. You may think this is high priced but this can also be a high value.
Signals tell you (by mail or sms) what pair to trade, when exactly to start and stop a trade. You just have to login to your account and enter the data provided. Forex signals should of course be accurate, so it is recommended that you try a signal service on your demo account first and see if you see a profit. Generally, trading signal can increase funds from 60% to 80%, sometimes more, depending on how aggressive the provider is, or how you are when deciding to entering more or less trades.
These signals can also be automatically executed by your broker, or your trading platform. In that case your trading is fully automated, you need to select the service you want to add to your portfolio at your broker. when the service sends the signals, trades will be entered. Check ZuluTrade to learn more about this, and the Automated Forex Trading page too.
Here is a list of Forex signals providers.
Managed Forex Accounts
If you have enough money, you can sign up for a managed forex account. These accounts generally require at least $10,000, sometimes more, to be opened. Here you ask your Forex broker to manage the funds for you. The forex broker will ask his forex traders to do the work. So your funds are in the hands of professionnal traders. Risks are really lowered and you don’t need to stay at your computer to fight with forex charts. Of course the forex broker will take a percentage (about 20%) of the net profit made.
This is a high percentage, but a little example : you invested $10,000 and the forex trader who manages your money makes 10% ($1,000) profit a month. He takes 20% ($200) of the profit. You still earned $800.
Here is a list of managed forex accounts providers.
Automated Forex Trading
Some forex brokers offer forex autotrading services. You fund your account and choose the pair you want to trade. Then their software receive signals and trade automatically. If your forex broker doesn’t offer this option, you can find a software and set it up to autotrade.
These trading robots are called “expert advisors“. Nothing difficult, once your trading software (MetaTrader 4) is installed, just copy the expert advisor file in the indicated folder. You then can activate the expert advisor and let the trading automated. You need to be permanently connected to the internet to let this work, or have the trading software and expert advisors installed on a VPS (See Forex Virtual Private Server).
Here is a list of forex expert advisors and automated forex trading accounts you might be interested in.