Forex Trading: The Basics Explained in Simple Terms
Getting Started in Trading
When you are just starting to trade, it is vital to research your potential investments rather than investing right away without any knowledge of the industry or best trading practices. Instead, it is so much better to take a step back and make the most of the wide range of online educational resources, before deciding on which instruments you want to trade.
For example, the basics of trading forex are much different from stock trading basics. Many traders invest in a range of different assets, but it is usually best to start with one asset type, such as forex, crypto or CFDs, and learn the basics of that before moving on and diversifying your portfolio.
What You Need to Start Trading Online
The first thing you need, apart from a little education, is a reputable broker. Check our list of safe forex brokers or safe crypto brokers, depending on your preferred asset type. Always read reviews of the brokers you are considering, and do not forget to check the terms and conditions carefully when you sign up on the online broker’s site.
Remember you don’t need a huge amount of funds to get started. It is good to start small and invest more as your skills and confidence grow.
Where to Look for Advice
There is a lot of advice on trading basics all over the internet, but some education portals are better than others. We recommend you start with our free forex course, which is specifically designed for beginner traders. It covers basics such as currency pairs and their characteristics, order types, pips, lots, margins and leverage.
Trading Basics Tips for Beginners
A good place to start is by opening a demo account with an online broker before you start to trade real money. A demo account helps you to get a feel for the platform and practice placing trades, without investing your own money. Some novice traders also like to experiment with copy trading, following more experienced traders to learn their tactics and imitate their trading activity.
Now you have the basics of forex trading covered, take a look at our education section for more advice and trading tips. Additionally, why not check out our broker page to see our recommended brokers with full reviews? Once you have found the right broker for you, follow our links to find demo accounts you can try for free, get a feel for the platform that works best for you, and build your trading confidence today.
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