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Where Can I Get a Forex Trading Account for Free?
Written by article default Monday, 31 August 2009 18:23
To get your Forex trading started, you first need to sign up with a Forex broker - and only with this FX trading account, can you start making trades.
Now the problem with Forex brokers is not about picking up a Forex broker - there're plenty of brokers around, both on and off the Internet. What matters is that as a serious FX trader, you need a reliable Forex brokerage account - where you're comfortable to put your money in, can maximize your ROI with their competetive service, and can quickly withdraw your cash when you need to.
Forex traders generally have a choice of two-four types of account. These include Mini, Standard, Gold and sometimes the Islamic account. Standard account holders can usually trade a minimum of around $10,000. So if there is a leverage ratio of 1 to 10, traders are required only to deposit $1000 of their own money into their trading account.Nevertheless, the advantage of leveraging can cause a trader to lose more than he has in his account.
Trading Platforms:
There are two kinds of trading platforms. A trader can use a web based platform, which they can monitor without the need for a download. Alternatively, a trader can download a Forex trading software to setup his trading platform. Some brokerage firms have both options.
Before commencing trading, a Forex trader must always familiarize himself with his trading platform first. The demo account that is available should be fully utilized to get you fully acquainted with the trading platform.
You also need to accept that there is also an element of risk when you take a position in the market. With that in mind, you have to place Stop orders and Limit orders to minimize your losses. No market position is foolproof and it is a given fact that your stop orders and limit orders will hit sooner or later. At least with a Stop order, losses are curtailed the minute the prices drop to the threshold of the stop order.
Take note that the nature of the Forex market is always fluid and fluctuating. Whenever you position your stop order or limit orders, ensure that it is not too tight or too wide. Otherwise, it will defeat the purpose of you using the stop or limit orders. If the Stop orders are too wide, this will result you incurring more losses than necessary before the stop orders are triggered. If the stop orders are positioned too close, the stop orders will be triggered prematurely due to the volatility of the Forex market.
Always keep your composure when trading and don’t let your emotions cloud your judgment. By preparing yourself mentally beforehand, you will be aware of what to expect and not let the situation get the better of you.
Before you choose a forex broker you need to ask them a series of questions to find out if they suit your needs. Here are some questions we've compiled to point you in the right direction:
a. Are you open 24 hours?
b. Do you charge commission or a transaction fee?
c. Do you offer fixed spreads?(it' s better for you if spreads are fixed as you always know what you'll be paying them)
d. What level of customer support do you offer? (ideally phone, email and live chat support)
e. What currencies and commodities do you offer?
f. How quickly do you process withdrawals? (ideally 3 days to 1 week)
g. Are you regulated by an organisation such as the NFA or FSA? (this protects you as a trader if they are)
It's a good idea to test a brokerage before you deposit with them, so email customer support and see how long they take to get back to you. This is often a good indication of how the rest of the company works.