A Quick Guide On Starting Your Online Forex Trading?
With a daily turnover of 6.6 trillion U.S. Dollars, the forex market holds massive potential to make quick profits. However, forex trading also carries “increased risk exposure due to excessive volatility,” according to ForexToStocks. That’s why currency trading in some countries is subject to strict regulations. In this piece, we discuss how to start forex trading.
How To Start Trading?
To start forex trading, you need to open an account with a broker. In some jurisdictions, it becomes necessary to sign up with brokers holding a valid license from the concerned regulatory authority of a country. For instance, if you wish to start forex trading in India, you need to sign up with a broker that holds regulations from the Reserve Bank of India (RBI) and the Securities Exchange Board Of India (SEBI). Given below is a step-by-step guide to help you start forex trading.
Step 1: Ensure online accessibility
The forex market is a virtual market having no central authority regulating it. It does not have physical existence anywhere in the world. You can only access it online. Therefore a PC, laptop, or mobile phone with a stable internet connection is mandatory.
Step 2: Select an authorized broker
It is in your best interest to select a regulated broker. Do not ever attempt to sign-up with an online broker if you are residing in India. Doing so can make you face legal consequences in India, i-e imprisonment or financial penalties. Therefore, always check if a broker holds regulations from the concerned regulatory body in the country, such as RBI and SEBI.
Step 3: Fund your account
To start placing trades in the live market, you need to fund your account. Your prospective broker is likely to offer you multiple deposit methods. Select the method according to your convenience. It is worth checking if your selected payment method has any condition attached to it, such as minimum deposit amount, or deposit fee, etc. Ideally, a payment method should not have any additional cost.
Step 4: Sign in to a trading platform
In addition to the internet connectivity, you also need a trading platform to access the forex market. Your broker may offer different trading platforms, including a web trader, desktop, or mobile trading platforms. You can use your account credentials to sign on to a
Step 5: Start placing trades
Finally, you are set to start placing trades. However, It is always the best idea to start with a demo account if you are new to forex trading. Virtually funded demo accounts help you learn different trading strategies without risking your real money. Once you have become confident to go live, the forex market has unlimited profit-making opportunities to explore.
Forex trading can help traders generate healthy profits relatively faster as compared to other investment markets. However, traders need to have sound market knowledge and trading experience to cater to the high market volatility. Besides a good trading plan, the frequent use of risk management tools is significant to stay safe.