Forex trading appears very appealing for many beginner traders, who soon feel perplexed and confused, mostly because they often approach this endeavour with certain misconceptions and perhaps unrealistic expectations. What should be made clear to all novices from the start is that forex trading is not a chance game and that they do need knowledge in order to stand a chance to succeed.

Knowledge not only on what forex trading is and how it is done, but also knowledge on how to choose their broker, what options they have regarding their trading methods and approaches, what tools they should seek to explore and many more. Though daunting at first glance, it is entirely possible to come to grips with it all and learn all you need to know as a beginner forex trader, provided you turn to the right resources for this knowledge and information. Our guide to forex trading for beginners aims to serve exactly this purpose and equip and arm you with tips and insights to ease your forex trading journey.

Dedicated resources on Trading Forex for beginners

Beginner forex traders may benefit from multiple items on our educational resources section, since anything relevant they read and learn is bound to help their understanding of the overall forex trading landscape and illuminate several aspects of the process for them, allowing them to make the right decisions, decide on how to shape their trader profile and preferences and proceed on their trading endeavour with increased chances for success. The dedicated posts highlighted below, are of particular usage and importance for beginner and aspiring forex traders, offering them invaluable knowledge and insights.

Forex Trading Tools for Beginner traders

The most essential Forex Trading Tools for Beginner traders

Forex trading being a highly complex task, requiring understanding of markets and their trends as well as technical and fundamental analysis skills if it is to be successful and lead to profits, means that beginner traders stand to benefit a lot through the effective use of dedicated forex trading tools. The present article presents the most important tools developed to help forex traders and enables novice traders to understand their usefulness and be able to effectively include them in their overall trading endeavour, thus maximizing their chances for trading success.

Using Calculators in Forex Trading

Beginners Guide to Using Calculators in Forex Trading - Forex Calculators Explained

Forex calculators are extremely useful and important and a powerful tool and weapon in the hands of every existing or aspiring forex trader. This present article is particularly expedient for beginner traders as it thoroughly explains what forex calculators are and what each of them does. Armed with this knowledge, beginner traders can subsequently select which calculators they should be using and how to do so effectively in order to take their trading to the next level and reap the many benefits to be had, rendering their forex trading journey a smoother, safer and more successful one.

Forex contests. Live and demo competition

The wonderful world of forex contests. Live and demo competition

Contests, either in demo mode or live ones, are a method used widely in the forex industry and employed by many brokers in order to incentivise existing or aspiring clients to participate. Forex contests are a chance to learn, try out tactics and strategies and earn confidence in one’s trading, while at the same time achieving gains, either monetary or in the form of the prizes offered, which are often amazing and worth your while. In this dedicated post the phenomenon of forex demo and forex live contests is analysed, including the advantages to be had from participating in such contests, while special mention is also made to the ways through which taking part can be most successful and yield the desired results.

Copy Trading Brokers and Investing platforms

Social Trading Revolution: Copy Trading Brokers and Investing platforms

Social trading has truly revolutionized forex trading as it further reduces entry barriers to the forex markets, mostly through allowing traders to be able to trade by following, copying, replicating and mimicking the actual trades and/or trading strategies of other, more experienced and seasoned traders. Explaining in detail what social trading is and what distinct types are available and where, this dedicated post is of particular importance for novice traders, as it presents in detail how they can benefit from social trading and how to approach it to enhance their overall trading success.

Hugely popular in recent times, the forex market is a hot venue across the globe, where novice traders are trying to succeed in and make profits through the trading of currencies. Nowadays, the forex market is more accessible than ever thanks to the abundance of online platforms and brokers offering the chance to interested individuals to access the markets through trading accounts. Making money through forex is very much possible provided a trader takes his/her trading decisions carefully, wisely and knowingly. This requires and presupposes obtaining the necessary information and knowledge through independent research and learning as well as guided help. Armed with this knowledge, beginner traders can then define their own trader profile and seek service providers that best meet their specific needs and requirements and better serve their predetermined strategies and risk tolerance levels.

Long term success in forex trading is possible, even for beginner traders, provided they show the necessary patience, dedication and commitment to learn as much as possible and improve their strategies and skills, choosing the right service providers and making the best use of available resources and tools.

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Forex trading for beginners - FAQs

How do I choose a forex service provider?
The best recipe for effectively choosing the most suitable service providers for your forex needs, e.g. the forex broker through which you will open an account to be able to actively trade the forex markets, is finding the perfect match between the provider’s offering and the specific preferences, needs and requirements of each particular trader. Often this selection process is hindered or blurred by aspiring traders not placing enough emphasis on matters that are truly important for their own particular case, and concentrate instead on more general issues, such as whether a service provider is regulated or not. Though this is an important parameter, it should never be the sole criterion to base your decision on. In order to choose your forex service provider more successfully, take the time to list and define your own preferences and then look around for providers that best match those. You can consult reviews, comparison tools and the opinion of other users for each provider you are considering, but ultimately the decision should be based on your own assessment, because only you know exactly what kind of offering would be best for you.
Is forex trading legal?
Forex trading is definitely legal. The question is whether you as an individual are allowed to engage in online, retail forex trading from the comfort of your home or workplace via an online trading platform. This largely depends on the jurisdiction which regulates such matters in your location of residence. Generally speaking, you can find regulated brokers servicing most parts of the world, but online forex trading is not equally easily accessible everywhere. It is thus wise to check the regulatory framework of online forex trading in your location before you proceed to open a trading account and ensure that the broker you end up choosing is not prohibited to be offering its services in your own country of residence.
Is forex trading gambling?
Forex trading is definitely not gambling as gambling is purely based on luck and it is often an illegal way to make money. On the other hand, forex trading is about making trading decisions and transactions based on the quoted prices of currencies. Online retail forex trading is open to anyone and it is potentially a highly lucrative endeavour, though one which comes with inherent high dangers and risks of losing significant amounts of your funds, especially if you are completely inexperienced and do not know how to trade properly or if you don’t carefully choose your broker and service providers and end up being scammed. In a nutshell, if approached with caution and if your trading decisions are based on knowledge, then forex trading is nothing like gambling.
Why shouldn’t I use leverage as a beginner forex trader?
Leverage plays a pivotal role in forex trading and can prove a very useful tool in cases where the exchange rates are not too volatile. If used effectively, leverage can propel the profits to be had to great heights, but the downside to this is that it can also maximize the losses to be incurred. Therefore, trading using leverage is best to be avoided by inexperienced, beginner traders and reserved to more seasoned users, who can better tame and understand the markets. If you do wish to use leverage as a beginner, make sure your broker provides a margin call, i.e. automatic closure of your trade if it is making losses beyond a pre-defined margin. This is the best way to mitigate dangers and risks, which are inherently associated with the use of leverage.
Why is trading forex with my own funds less risky than trading in demo mode?
Though trading in demo mode is useful to teach you the basics about how forex trading is done, trading with virtual funds eliminates the risk factor, i.e. you are taking trading decisions without having anything to lose, without incurring any real monetary losses is it all goes wrong. Therefore, your emotional state of mind is different and tends to be much more reckless and impulsive. On the contrary, when you trade using your own funds and real money is at stake with each transaction and bid placed in forex trading, this forces you to be much more careful and better weigh each move, in order to ensure that you will not end up losing your money. Therefore, it could be argued that the best method to effectively and efficiently learn is trading under real conditions and using real funds, but start by using small amounts so that your risk level is mitigated and kept to a minimum level that you can tolerate.