How To Start Forex Trading From Home

SCM Forex

Junior member
21 1
If you plan to make quick money with forex trading, then you need to be aware of certain facts before you start trading Forex. The world of Forex is a whole new dimension of complex financial transactions. Hundreds of financial myths are considered as a part of this industry. It requires you to be extra smart in order to survive. But don’t worry, once you become familiar with some of the basics of Forex trading, everything else starts working in favor of you. Let us mention some important points that may help you to figure out how to start Forex trading from home.

Listed below are some points you may find useful.

Look If Your Broker Is Regulated Or Not?
The first thing you may come across prior to trading Forex is the selection of a broker to open a Forex trading account. You may well be aware of the fact that you need to deposit funds in your account. Here comes the important bit - the security of your funds. If a broker is regulated, this means it follows rules and regulations in place and most likely holds clients funds in segregated bank accounts. This is how you can rest assured that your money is protected. On the other hand, non-regulated brokers do not have the same type of regulatory oversight which means your investment may be at a greater risk and in most cases you can't file your case against the broker in a consumer court.


Select a Broker That Suits Your Trading Requirements
After filtering out a list of regulated brokers, you need to check what broker specifically suits your trading needs. The market is dominated by two types of brokers at present. One is known as market makers and the other one is called an ECN broker. They both work differently. Market maker brokers make money by betting against trader’s success and that is why they may intervene against their traders . Due to their intervention, trade execution may be delayed and traders can lose trading opportunities. On the other hand, ECN brokers do not intervene orders placed by traders, instead, they pass the trading orders directly to the interbank market and make a commission on the transactions. This is the reason why most traders prefer opening an account with ECN and not with market makers as there is no conflict of interest.

Check Commission, Spreads and Leverage Offered by Your Perspective Broker
Once you are done selecting a broker using filters such as regulation and type of a broker, you may also wish to know what percentage of commission you may be asked to pay. You might also be interested to know what leverage your broker offers. A good Forex broker typically offers both fixed and floating spreads at competitive prices. A broker that offers you a generous leverage but doesn’t offer tight spreads may not always be that advantageous if you are using scalping as a trading strategy for example.

Locate Brokers Offering Demo Accounts
Demo accounts are offered to traders by almost all brokers to let them test the platform and practice their trading strategies and money management tools without risking their real investment. The demo can give you an indication of how the platform works, what pairs the broker offers in addition to what commissions and spreads the broker charges.

Check the Efficiency of Deposit and Withdrawal Process Of Your Broker
One indication of the broker's efficiency and service is always the process of withdrawals and deposits. Most traders are always concerned about the fund's withdrawals which is why might always be advised to check what banks and payment methods the broker uses to facilitate the client's withdrawals. A good and reliable broker typically only uses Tier 1 banks to hold their client funds and expedites withdrawals through merchant payment services like Skrill and Netteller. A lack bank options and funding methods may indicate that the broker does not have sufficient options to handle deposits/withdrawals which may impact the withdrawal process.

Evaluate Customer Services of Your Broker
Trading Forex from home becomes even easier when you receive an excellent customer support from your broker. Good Forex brokers always ensure that a timely customer service is of utmost importance to service a client. This means you can contact your broker via different mediums including telephone, email and live chat. See if your broker is quick to respond. If it is, then that is a good indication you are working with a professional broker who values your business and will provide good service to support your trading endeavor.

Final Words
Starting Forex trading from home isn't hard provided that you follow instructions carefully. However, no matter how good your broker is, the success of your trading career always falls on your skills. Try learning the basics of Forex trading and how to master the art of analyzing the markets. In our next articles and videos, we will showcase some of the tools and secrets the experts use in order to become successful and ultimately gain financial freedom.

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ForexChief

Newbie
4 0
Thanks for the A2A. I don’t actively trade the fiat currencies right now but I studied FX a bunch in business school and was personally tutored by a retired Bear Stevens trader, so I feel confident in telling you how to get your feet wet.

If you want to do it professionally, your best bet is to go get some training through a prop shop or investment bank on a trading desk. (Be careful about the prop shops as many of them can be shady as hell, can require you to pony up significant capital before you join and have some really horrendous clauses about revenue split and fees you have to pay them out of your trades. There are a few legit ones though).

If you mean as an individual investor or some sort of day trader, it requires (like everything else) a lot of studying, reading and practice. It’s also helpful to find a mentor who has traded FX professionally. Get Meta Trader 4 (or 5, though I think most of the older vets still cling to 4 like unevolved Investment Bankers cling to their Blackberry) and start paper trading once you have some basic concepts to get a feel for how everything moves.

I would focus on one currency pair to start (as an American, I started learning about trading FX by focusing only on “cable” or the exchange rates between dollars and pounds). And expand from there. You could get a few books on the topics, but I have yet to find a book on FX trading that does a better job than interactive videos, organizational white papers, recent scholarly publications and webinars on the internet; the books are great for contextualizing how the trading evolved, but in terms of the mechanics of trading today, I find a lot of them can be dated.

If you live in a country whose currency is a reserve currency, use that as one of the pairs to start with. Your home currency is preferable as one side of the pair unless it doesn’t have a proper amount of volume (see Thai Baht circa 1997). You won’t necessarily get the macro implications in the movements of the Australian dollar vs. Swiss franc if you know nothing about the current politics or issues around the central banks and monetary policies in the region. Once you get one pair down, use your non-home currency and third currency that has volume and is either geographically close or related to your home currency or the non-home currency as a 2nd pair to study. (So in my example, I would start with cable and then look to a cross with major volumes like a euro/gbp). then look at the 3rd currency and your home currency pair (USD/EUR). Until you get more advanced, you could probably stay with one currency pair, but by looking at three currencies and their pairs you can start to see some triparty trades or some arbitrage opportunities if there is a dislocation amongst the three.

Bluntly though, FX is pretty tough trading in. You have a lot of HFTs arbitraging away your spreads and everyone and their mother who is looking past stocks is looking at fiat currencies or cryptocurrencies as the market they can gain an edge in. Also, macro analysis only helps so much. Even if you are going to trade manually, you really should have a quantitative background to do well, assuming you aren’t going buy and hold for event driven changes (like shorting the pound in ’92 leading up to Soros’ bet).

FX generally trades out to 4 decimals so your edges are small when you get them and your proffered strategy will most likely involve trading on those tiny edges repeatedly. Technical analysis is really popular as well (though I don’t know if I buy into Elliot Wave theory, you need to know your Greeks, channel breaks and momentum indicators). Also may be worth checking out trading strategies that utilize certain ‘principles’, like Fibonacci retracements.

But honestly, your strongest entrance can be made if you have a deep understanding of economics, statistics/data science/ high level math, and programming (and unless you are focused on exotics or thinly traded pairs, like Dong/Taka, you may find yourself losing when you start trading for real without a heavy quant background).

If someone else answers this question who has traded FX on the buy-side or has years of experience on an IB desk, rate any of their conflicting recommendations over mine. And for the love of all things holy, do not trade on the margin until you really know your stuff. That’s how the guppies get wiped out in FX.

One last note: there are a TON of schemesters that will try to sell you their ebook, class or product to teach you how to trade their winning strategies. They may even try to show you their returns (which is usually selective at best, fraudulent at worst). Don’t buy that stuff, and discount anyone who tries to give you advice promoting a proprietary strategy. It’s generally a waste of money and if you mindlessly trade on it you most likely will incur big losses.

DO however seek out theories and formulas that are accepted in the academic community for calculating proper valuations and if you can, try to get a mentor to help you learn the ropes. I avoided a lot of pain because my friend helped me understand the asset class (he once prevented me from trying to trade Polish Zloty/GBP where I would have lost a ton of money).

I trade with [Link removed]
 

Dujin333

Junior member
42 3
From the technical point of view, it is no more difficult to start trading on the market than to understand mobile banking. In fact, you just need to register on a website or a mobile app. Some companies ask you to download a terminal (a special program) to your computer.
Then you should transfer money to your trading account and you can start trading. Then the money can be just as easily transferred back to your bank card.
The minimum amount required to start trading may vary from one company to another. But as a rule, we are talking about small amounts of money. Sometimes it can be $10 or $100, and in some cases even less.
The very first step you need to take before you start trading in a real account is learning. And you need to study in detail all the aspects and nuances that you will have to face, leaving as few unknowns in your knowledge as possible. Then you need to develop your skills by practicing on a demo account.
The success and decision to trade or quit is up to you. As in any other business, there are some difficulties in trading. But there are also pluses.
Online trading on markets is one of the few options for real and fast enrichment. Such trading is available to each of us. It doesn't require any capital expenses - there is no need to rent offices, no staff, and no pile of equipment. All it takes is the Internet and a computer or a smartphone.
 

StopTrading

Newbie
6 0
Some great tips from the OP there. I've no doubt that it's been suggested thousands of times already, but BapyPips really is a fantastic free resource for anyone getting started. It really helps a new trader grasp the fundamental concepts before ever committing to a real trade.
 

Drekk

Junior member
24 1
Some great tips from the OP there. I've no doubt that it's been suggested thousands of times already, but BapyPips really is a fantastic free resource for anyone getting started. It really helps a new trader grasp the fundamental concepts before ever committing to a real trade.
Babypips is good, right!
Even I use it a lot.
 

kimhughes

Newbie
2 0
There is a lot of learning and practice involved when you are entering the forex market for trading. You should always keep yourself updated.
 

Pat494

Legendary member
14,447 1,527
Good advice above.
Download a free to use platform like MT4 or MT5. They do a free as long as you like demo too.
Loads of indicators. The most widely used platforms with lots of brokers supporting them.
 
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