Online Forex Trading can be both fun and gives you the chance for huge profits within short periods of time. The Foreign Exchange Market (Forex) is the largest market in the world with a volume of over 2 billion US-$ daily. This makes it so interesting and that’s one of the reasons why more and more people are trading with Forex. If you’re looking for new and fast investment opportunities with high returns you should definitely consider trading Forex. But before you start you have to pick the right forex broker and we highly recommend Plus500 to you. This is one of the largest and most popular forex brokers out there and you’ll get $25 for free when you sign up! Their platform is very simple and easy to use and you’ll surely make a great forex experience right from the start.
How to find a good Forex Broker
There are plenty of online Forex Brokers out there. As novice trader it’s very hard to find the right one. I can remember how I was looking for my very first broker. I googled for “Forex Broker” and similar terms hoping to find a reliable broker. What I found was something called Forex.com – I thought this was the only platform where you could trade Forex thanks to the domain name. Of course it wasn’t and after my registration I was not very satisfied and for a noob it was absolutely overwhelming. They called me immediately after my registration which confused me. I asked them how to fund my account – I had money at Paypal, Skrill and Neteller and wanted to give it a shot with these funds but they only accepted credit cards. That was a nogo to me so I did not bother any more. Then I found sites like Earnforex and that was the best thing that could happen. Why? Because they compare forex brokers extensively and I was able to compare my favorite brokers easily. That really was a bless and luckily, there are more sites like that that try to give novice traders a good overview of the market. ForexTradors is one of these sites, EasyForexTrading another greate one.
Is Trading that simple?
A lot of people want you to think that Forex trading is easy and virtually everybody can make money with it. This could not be farther from the truth! Forex Trading is indeed a very profitable business – when you know what you’re doing. And until you know what you’re doing it takes a lot of effort and time. But the good news is that it’s definitely possible and entry barriers are very low. You don’t need $100,000 to start trading and you don’t need to study economics to become a successful trader. It’s in all your hands. You have plenty of resources where you can learn how to become successful like our strategy section.
There’s something you need to understand in advance: Forex Trading is trading with leverage. That means that you can move a lot of money with little investments. When you think about unleveraged trading it works like that: EUR/USD is at 1.3000 right now. You think it will go up soon and so you buy $13,000 EUR. Now the new price is 1.3010 which is an ok movement. Your earnings will be $10 with an investment of $13,000. This is a profit of 0,077%. Boring, isn’t it? But when you use a leverage of 400:1 this will increase to 30% profit and that is quite good! This is what Forex trading makes interesting. It’s not that currency pairs are so more interesting than stocks or commodities. The reason is that there’s huge liquidity in the market and you can trade with high leverages – guaranteeing huge profits with small investments. However, this also works in the other direction meaning that you can make huge losses as well. So you have to be extremly careful and you have to be aware of the fact that Forex trading means high profits but also high risks – unlike stocks trading for example where risk is limited especially when you have a solid portfolio with lots of different assets.