Which is best for beginners?
To achieve good results in online trading, you need commitment, persistence, but also a good basic knowledge of the market you want to work in and the platforms you want to use. If you are drawn to the many advertisements of the platforms that make money easy for everyone to make money, thinking that you can get rich in just a few clicks then you will always lose money.
This article is intended as an introductory guide to Forex trading and the various online brokers that allow you to access the world of trading in a simple and reliable way.
From this short guide, which is suitable for novice traders, you can find some useful tips to get started in such a market. While fairly straightforward, it does offer an initially difficult learning curve for anyone new to it. After reading it, if you have additional interest in the world of online Forex trading, we suggest you take a look at IB’s AI Trading Guide, which will give you an overview of how whose artificial intelligence can help novice traders.
First of all, what is Forex?
Forex (or FX or Currency Market) is an acronym for Foreign Exchange Market, and it is a currency exchange market, in which they can trade all possible currency pairs quickly and securely.
For example, if you have $ 10,000, you can exchange them for the same amount in US dollars, which is determined by the exchange rate (the exchange rate is determined by the supply and demand of the currency). For example, as of this writing, the exchange rate between EUR (Euro) and USD (USD) is equal to 1.0595, so if you want to exchange € 10,000 to US Dollar, at the end of the transaction you will get 10,595 US Dollars.
Forex is considered the largest trading market in the world and it circulates over $ 5,000 billion a day! A huge personality, which makes it a very liquid market, where it is always possible to find a buyer to sell to.
But what are the advantages of Forex trading?
The exchange rate fluctuates over time and this means that the best benefits can be gained from these currency exchanges.
Let me give you an example: in 2018 the EUR / USD exchange rate peaked at 1.5756, today it is equal to 1.0595. Now imagine trading 100,000 dollars in 2008 and trading it for euros today, you would earn about 50% of your equity, right?
Here is the calculation:
$ 560 * 0.84384 Euro = 472.5504 € (where is the current exchange rate between 0.84384 and Euro) So in the end you will have 148,000 euros in hand (after investing 100,000 euros), right?
(Well, you should also remove the commissions, but I can assure you that the commissions charged by Forex brokers are not as high as those charged by banks).
Now, if you try to look at the chart of historical Euro-dollar trading, you will see that there have been many strong swings over the years in which you could reap significant benefits.
Another advantage that should not be underestimated is the Forex opening hours.
Suitable for those who wish to work part-time or after regular office hours, this market is permanently open from Sunday evening to Friday evening!
How to trade Forex?
To trade Forex, you need to choose a reliable broker that allows you to work quickly and without high commission (like the bank will). There are many solutions you can find online, and the best we can recommend are Plus 500, XM, and eToro.
For example, eToro, besides being reliable, allows you to test their services through a free demo account, where you can practice using the platform with real exchange rates but with “virtual” money – without any risk or expense.
Signing up for these services is very easy and fast and their platforms can be used both on PC and Mac and usually also via iPad or smartphone.
Copy commerce vs AI commerce
In addition, eToro offers copy trading – an ability to copy the movements of the most experienced traders. This is different from AI trading because here you are copying the decisions of the so called top traders, while with AI trading you are letting a computer make decisions for you. What is the best? It’s hard to tell at this point, and spreading your money over the two might yield the best results. Remember that it is always possible to lose money and only invest the money that you are prepared to lose.