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Forex Trading Course

Trading in the massive foreign exchange market was once exclusively reserved for major banks, hedge funds, corporations and high-net-worth professional traders who made fortunes off of exchange rate fluctuations. Thanks to the advent of online trading, today's forex market has evolved to include small retail currency speculators trading for their own account.

Now, you too can learn to trade forex and take advantage of exchange rate movements in the largest and most liquid financial market in the world. Nevertheless, for the best chances of success, you will need to first obtain a broad-based forex education before you jump in and start trading forex.

Why forex? First of all, the huge forex market with its tight dealing spreads and round-the-clock hours can now be traded by virtually anyone with a reliable Internet connection and a nominal amount of funds to place at risk. Furthermore, because of the ready availability of easy-to-open trading accounts with retail forex brokers and downloadable or web-based forex trading platforms, you can learn forex and be trading via your own computer and Internet connection in no time.

Still, you probably need to feel more confident about trading forex before investing your time and putting your money at risk in the currency market. By getting a sound currency trading education under your belt, you will soon feel much more confident taking forex positions. Learning forex these days does not have to involve working for a bank or financial institution, which was the traditional way to learn currency trading in the past. Today, you can start to learn forex trading online by downloading a forex trading platform and studying its technical indicators. Traders new to forex can also really benefit by taking a good-quality forex training course to get the forex basics down.

In fact, a number of forex training resources exist on the Internet where you can now learn forex trading online by reading useful educational material posted on websites. Also, a variety of online brokers exist for you to choose from which offer demo or practice accounts free of charge that allow you to test out your forex education and trade plan with virtual funds before you commit any real money to forex trading.

A primary reason that forex trading has achieved such recent popularity involves the tremendous leverage you can take advantage of when trading the forex market. Stock trading margins typically require traders to put a 50% margin down to trade, commodities usually need 20%, but currency trading margin in retail accounts can now be leveraged up to 500 to 1 with some online forex brokers. This means that just $100 can control a $50,000 forex trading position, and no other financial market currently offers this impressive amount of leverage. (In the U.S. the maximum leverage is 50:1 for majors and 20:1 for minors.)

Naturally, it makes sense to learn forex basics before taking such high risks. Although money can be made quickly using leverage, it can also be lost just as quickly using that kind of high ratio. As a result, just about any responsible forex trading course will strongly advise those considering trading the forex market to take the time to learn currency trading thoroughly before starting to trade using high leverage ratios.

Overall, perhaps the most important recommendation to novice currency traders and experienced traders of other markets would involve encouraging them to get a good forex trading education before they ever take their first forex trade. Doing so will also better prepare a trader to draw up a comprehensive and successful forex trading plan. When combined with the discipline necessary to follow a trade plan, going through this forex education and trade planning process can really help you on your way to develop the edge needed to trade the forex market objectively and profitably.

Next step: What are Currency Pairs?

There is a high level of risk of trading on foreign exchange on margin and it may not be appropriate for all investors. The high degree of leverage can work for and against you. Before you choose to invest in foreign exchange, it is highly recommended to cautiously examine your investment objectives, experience level, and desired amount of risk. The information and opinions stated on this site should not be considered as solicitation or offer to buy or sell any currency, equity or other financial products or services. Past performance does not predict or assure future performance. Only the NFA regulated brokers featured on this site are available to U.S. customers. Read our legal disclaimer.