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how to start forex trading

How do I start trading forex?

Finally, when you’re ready to get into forex trading, it’s best to follow these six steps:

1. Decide on a type of forex deal

When trading currencies, you speculate on price changes. Due to the small movement in exchange rates, which often only occurs to the fourth or fifth decimal place, leveraged instruments such as CFDs usually make sense for private investors.

This is because CFDs allow for profits in excess of pips. However, to reiterate, leverage can also work the other way and multiply potential losses

2. Decide on a broker

Of course, you should choose a forex broker that is well established in forex trading.

But other criteria are also important. The most important are mentioned using the example of Admiral Markets:

  • Regulation: Admiral Markets is supervised and regulated by the Cyprus Securities and Exchange Commission (CySEC) in Cyprus and the Financial Conduct Authority (FCA) in the UK, among others. In addition, we are of course also registered with the BaFin.
  • Trading platform: The MetaTrader is very widespread. But only at Admiral Markets do you get the MT Supreme Edition, which facilitates your forex trades with over 60 additional tools and indicators.
  • Spreads: The lowest spread is not always the best. Instead, make sure your broker offers “typical” or “fixed” spreads, which usually apply during peak trading hours. At Admiral Markets, the typical EUR/USD spread is 0.6 pips.
  • Offer of information: Currency trading with derivative financial instruments is complex. At Admiral Markets you can access a comprehensive range of educational opportunities in forex and CFD trading. With that they are armed.

3. Practice in the demo account

Before you jump, grow wings! You should not trade real money immediately. Open an Admiral Markets demo account and try everything out at your leisure

4. Develop a working strategy

There is an unmanageable number of forex strategies. But only one is right for you. Use your demo account to slowly work your way up to your strategy.

5. Open a live account and fund it

You have completed further training in forex trading and gained sufficient experience with a demo account. Now is the time to open an Admiral Markets live account and deposit “real” money into it – so you could start making real profits too.6. Trade the majors first

Start with the forex pairs for which the latest news and background is available and which you can best assess. As a rule, these should not be the exotic ones.