Forex For Beginners - Tips, Tricks & Steps

Trading Forex means trading two different currencies
One of the best FX platforms are MT4 and MT5
There are many types of accounts: Demo, Mini, Standard, etc
The most important features are pips, spread, leverage, and lots

Forex Trading Basics - How Do You Start?

Forex trading explained: Foreign exchange trading is buying and selling different currencies in order to generate profit. forex beginner guide

The foreign exchange market is the world’s largest financial market and plays an important role in the global economy. Currency exchange rates in the Forex market change constantly every week. Forex explained for beginners usually starts with an explanation of the market and how it works, but that’s way too specific. The ultimate way to understand FX trading is to start doing it, and the best way to do it is to find a good broker. There are several characteristics that a good broker should have. The first thing is security which is probably the most essential factor. Every broker should have a license and should be regulated by a specific financial institution. This is when you make sure they are reliable and trustworthy brokerage companies. Another important thing about Forex trading is the platform itself. Choosing the right trading platform is one of the most crucial decisions that an investor needs to make in FX. It gives traders access to various important trading instruments and tools that will simplify the trading experience. The two most well-known Forex trading platforms include MetaTrader 4 and MetaTrader 5. In order to understand currency trading basics, we also need to mention the diversity of trading account types. The first and foremost account for beginners is the demo account. Other types include Standard, Mini, and Managed Trading accounts. There is also a special account for people who follow Islam, called the Islamic account. It is designed to adhere to the Quran, which is why it’s a swap-free account. The most important trading features a trader needs to be aware of are Spreads, Leverage, Lots, and Pips. These 4 features are the bread and butter of FX trading in this day and age.

Brokers

The basics of Forex market can sometimes boil down to the company you choose to trade with. Due to the extreme difference in the features each company provides, every trader has a different experience. Choosing the right broker is your first step towards success while choosing the wrong one can lead to nothing but failure. Besides a guarantee of success so to speak, a good brokerage also provides security and protection to their clients should something go wrong. While unregulated brokers are not so likely to help out. basics of forex market

Beginner traders are often confused by the wide variety of opportunities that exist in the Forex market in terms of broker companies. This is why every novice trader is recommended to research their broker of choice extensively before making a decision. On the other hand, another important factor to be mentioned in this Forex beginner guide is the transaction costs of the specific brokers. Almost every type of brokerage company has its own commission so investors should pay close attention to them and choose the lowest rates possible in order to maximize their overall profits. Moreover, while talking about the Forex brokers, it should also be noted that the profit withdrawal process should be smooth, fast, and comfortable. This is usually guaranteed through a vast array of possible withdrawal methods, as well as an absence of any hidden fees. The final feature of a brokerage that needs to be paid heavy attention to is customer service. Beginners tend to have lots of questions for their brokers, even if it’s about Forex trading basics that they may not be sure about. And due to how fast things change in the market, brokers should always have swift answers ready for such questions.

Trading Platforms

Choosing a good Forex trading platform is very crucial. There are several characteristics that good platforms should have for the trader to reach success. Such features include trustworthiness, responsiveness, protection of the customers’ data, analysis tools, and so on. However, there is no such thing as the best platform for everyone. This is because every trader has their own trading goals and strategies so they are recommended to choose the platform that matches their trading needs. But if we were to outline the best options, MetaTrader 4 and MetaTrader 5 would be the first to come to mind.

MT4

MetaTrader 4 has been operating in the Forex market for more than 16 years. It’s pretty much a part of every single Forex step-by-step guide at this point. It’s probably one of the easiest platforms to learn, which in turn helps the traders develop new trading strategies. MT4 is also one of the most reliable, highly secured, and protected platforms in the FX market right now. This helps protect from any technical meddling from a third party, or even a crash of the software during important decision-making processes. On top of that, this software provides a high level of technical analysis tools, a comfortable trading system, algorithmic trading, and not only a web but also a mobile app version.

MT5

Another essential trading software that should be included in this Forex trading basics for beginners is MetaTrader 5. Millions of people around the world use this reliable trading platform because of its high-quality features. MetaTrader 5 offers its customers highly advanced technical analysis tools that give the investors an opportunity to predict future movements that might occur in the foreign exchange market. Moreover, it should also be noted that MT5 allows trading with different types of assets such as Forex, stocks, and futures. It also has an algorithmic trading option such as robot trading and Expert Advisor. The most beneficial thing about MT5 is that it is dedicated to beginners as well as professional traders.

Account Types

In this beginners guide to Forex trading, we should also state that there are several trading account types. They include Demo, Standard, Mini, and Managed accounts. However, there is also a special type called Islamic account. We will discuss them briefly down below.

Demo Account

A demo account is dedicated exclusively to novice traders in order to find out everything about the foreign exchange market in a simulated environment. This account is a huge opportunity for beginner traders to test various strategies and trading tools and gain important experience. All