Q&A for How to Trade Forex

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  • Question
    What do we usually trade here specifically?
    Donagan
    Donagan
    Top Answerer
    Here we're talking about using one national currency to purchase a second national currency and trying to do so at an advantageous exchange rate so that later one can re-sell the second currency at a profit.
  • Question
    Can I trade without brokers?
    Community Answer
    Community Answer
    No. The brokers are the ones with the pricing, and execute the trades. However, you can get free demo accounts to practice and learn platforms.
  • Question
    Is Forex trading safe?
    Donagan
    Donagan
    Top Answerer
    Not unless you really know what you're doing. For most people, Forex trading would amount to gambling. If you can find an experienced trader to take you under his wing, you might be able to learn enough to succeed. There is big money to be made in Forex, but you could easily lose your whole stake, too.
  • Question
    How much capital does one needs to have to start trading?
    Donagan
    Donagan
    Top Answerer
    It's common to begin with several thousand dollars, but it's possible to start with just a few hundred dollars.
  • Question
    How do I fund an account for forex trading?
    Donagan
    Donagan
    Top Answerer
    During the process of opening a trading account, electronically transfer money to it from your bank account. The broker will tell you the minimum amount with which you can open an account.
  • Question
    Can an unemployed person depend on Forex trading?
    Donagan
    Donagan
    Top Answerer
    Forex trading is not easy, even for experienced traders. Don't rely on it for income until you know what you're doing.
  • Question
    Where can I find the free demo accounts to practice and learn platforms?
    Community Answer
    Community Answer
    fbs.com is a forex trading site. You can register with a demo or bonus account.
  • Question
    Is trading Forex the same as gambling?
    Donagan
    Donagan
    Top Answerer
    For an inexperienced trader, yes, it's gambling. Even experienced traders sometimes have to rely on luck, because there are so many variables at play.
  • Question
    Is it a good strategy to open a position and close it after several days?
    Donagan
    Donagan
    Top Answerer
    It is neither a good strategy nor a bad one. Holding a position for a particular number of days does not guarantee you a profit.
  • Question
    Is it compulsory to open an account at a specific bank?
    Donagan
    Donagan
    Top Answerer
    No. Your trading account will be at a brokerage, but you can link it to whatever bank account you choose.
  • Question
    What are some of the approved brokers in the States?
    Donagan
    Donagan
    Top Answerer
    First of all, re-read Part 2 above. Then do an online search for "Forex Brokers." One good review site is TopTenReviews.com, where you can search for "Forex Brokers." Pick someone well known and well established.
  • Question
    Is it safe to start trading without knowledge?
    Donagan
    Donagan
    Top Answerer
    Absolutely not. If you don't want to do the work to educate yourself, hire a full-service broker to do the thinking for you.
  • Question
    According to your knowledge on forex, what are the 2 currencies that will make me a good profit in any case?
    Donagan
    Donagan
    Top Answerer
    In forex there are no guarantees. Generally speaking, no currency pair can offer a novice a guaranteed profit. Successful traders are simply good at recognizing economic and political conditions that lead to increasing or decreasing currency values.
  • Question
    What is a currency pair on Forex?
    Donagan
    Donagan
    Top Answerer
    A currency pair is any two national currencies, such as US dollars and British pounds, or Japanese yen and Mexican pesos.
  • Question
    What age do you need to be to start trading?
    Donagan
    Donagan
    Top Answerer
    Most brokers will require you or a co-applicant on the account to be at least 18.
  • Question
    What do the candles represent?
    Community Answer
    Community Answer
    The price of the currency pair. They are a more complex version of a line that shows highs and lows for the pair.
  • Question
    How much is $1000 in Rands?
    Donagan
    Donagan
    Top Answerer
    At a recent exchange rate, $1,000 was worth 13,420 Rand.
  • Question
    How easy is it to transfer profits made from brokerage to a bank account?
    Donagan
    Donagan
    Top Answerer
    It is typically very quick and easy.
  • Question
    How do I trade on Forex?
    Community Answer
    Community Answer
    You will get all the online classes once you have enrolled in Forex program.
  • Question
    Is it possible for a broker to not transfer my money when I request withdrawals?
    Community Answer
    Community Answer
    This depends on whether the broker is a scam or not. Scam brokers will never process withdrawals. On the other hand, regulated brokers will process your money no matter what profit you make. Before you deposit, do some thorough research on that broker; read a lot of reviews and make sure it is a reliable broker. There are brokers that are not licensed, but they still offer good services; to be on the safe side, always invest with regulated brokers.
  • Question
    What percentage does a broker take from me as his commission?
    Donagan
    Donagan
    Top Answerer
    Forex brokers don't charge a commission. They make their money by taking advantage of the "spread" between "ask" price and "bid" price (which they do not control).
  • Question
    Why is so expensive for someone to learn about trading?
    Donagan
    Donagan
    Top Answerer
    A trading course is priced at what the market will bear. In other words, it's expensive because many people want to take the course.
  • Question
    Is it advised to start trading with only $100?
    Community Answer
    Community Answer
    If you are a beginner, it is recommended that you start with the minimum balance required by your broker.
  • Question
    When is the right moment to open a trade if there is going to be an announcement?
    Community Answer
    Community Answer
    Wait until the market has settled after the announcement.
  • Question
    How much money should I have to start?
    Shaun Revell
    Shaun Revell
    Community Answer
    You can start a trading account with as little as $50.00. However, this is not generally recommended. You'd be better to start with a $1000 account with a broker that offers a nano or micro account. This is a good place to get a feel for the market and trading with real money. Generally speaking, in the world of Forex, a $10,000 or $20,000 account is considered a small trading account.
  • Question
    How much do I need in my account to start trading?
    Community Answer
    Community Answer
    Different brokerages have different minimums. Some $0, some up to thousands.
  • Question
    Must I first register with the central bank of my country before I start Forex trading?
    Anisur Rahman Anis
    Anisur Rahman Anis
    Community Answer
    No, first you need to find a broker. Open a account, then you will need a bank account to deposit or to withdraw.
  • Question
    How can I place an order in Forex?
    sihle yani
    sihle yani
    Community Answer
    It's easy to place a market order with Trading Station. All you have to do is locate the product you want to trade, then click on the buy price if you want to go long or the sell price if you want to go short. After confirming the remaining order details, click OK. This is how it's done on FXCM.
  • Question
    What is a stochastic indicator?
    Community Answer
    Community Answer
    It's a trading indicator that oscillates on a scale from 0 -100 to help us determine if the market is overbought or oversold. Above 80 is overbought and below 20 is oversold. Ideally you want to buy when the market is overbought and sell when the market is oversold.
  • Question
    Can I personally buy a currency in the bank or is it necessary to have a broker?
    Community Answer
    Community Answer
    Yes, but there is a limit and you will have to pay a fee to the bank.
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