Most people have heard of Forex traders, but not everyone is familiar with what the term means. Forex stands for foreign exchange, and it basically refers to trading one currency for another in order to try and make a profit.
Some Forex traders work on behalf of banks and other financial companies. But some work from home using the internet to make their trades. These days it is very easy to keep up to date with how the markets are performing on a minute by minute basis. This means you can look forward to trading at home in your pyjamas if you so choose!
In a sense it is very easy. However to become a forex trader is not the same thing as being a successful trader.
You will usually find you only have to go through a few steps to open up a trading account. You can then start to make trades as and when you want to. But with this said it is not advisable to do this until you know a bit about how Forex trading works and how you can make money with it.
Yes thankfully it is. Most of the reputable online Forex websites that are set up for you to trade with have a free account facility too. This gives you a set amount of ‘play money’ to use for practice trading before you decide to use the real thing.
Most of them are in American dollars, and the usual amount for a free account is $50,000. This should be more than enough for you to practice using certain techniques and trading methods. You can also get used to their trading platform, so when it comes to trading for real you’ll already know your way around it. It’s definitely the best way to learn how to be a Forex trader online.
The above method of using a practice account is superb. But you still need knowledge.
There are lots of other websites that focus on Forex trading and how it works. Some of them give excellent tutorials – all free of charge – that reveal how to read charts and anticipate what the exchange rates between different currencies may do in the future.
You could also look at getting some books on the subject to read in depth before you begin. It cannot be stressed enough that being a Forex trader is an extremely challenging position to be in. This is why it’s worth making sure you get it just right. The more research you do and the more you practice with that practice account and play money, the better your chances will be of making a profit when you finally do it for real.