Forex is the largest financial market with an astonishing volume. Every day, over 5 trillion US dollars circulate between its participants. Until the 1990s, only institutions were allowed to make a profit through trading. Now, anyone with an internet-connected device can do the same. All you need is the right software and knowledge of the market. Here is where to begin.
In 2021, trading is defined by digital technologies. Sophisticated apps and platforms connect users to the gigantic marketplace. Currencies are bought and sold online, and the system is decentralized. Unlike the stock exchange, it does not have a physical center. To get started, you need a registered account with a brokerage.
Step 1. Open a Demo Account
It is the first step for every Forex novice. Theoretical knowledge alone will get you nowhere. You need safe practice. Regulated providers allow their clients to train as long as necessary. For instance, an Olymp Trade demo account comes with a virtual deposit and unlocks all the features of the trading software.
Today, there are trading systems for desktop computers and mobile devices. They work on all popular OS: Windows, Mac, Android, and iOS. Usually, you only need to submit the basic contact details to register. The broker will email your password and login straight away. Use them to unlock the terminal, and you are all set.
Step 3. Build Your Skill Set
On average, traders spend between 2 and 3 months working in the simulator. It imitates real market conditions, but no money is deposited or withdrawn. The demo is indispensable, but it still feels different from live trading. When your own capital is a stake, making the right decisions is always more difficult. This is something to bear in mind.
Step 4. Go Live!
To access the biggest financial market, you need another type of account — live (sometimes called ‘real’). To create it, the broker will need a few documents to conduct an identity check. Popular companies make this process as speedy as possible. Once the new credentials are ready, you can fund your account and get down to business!
Start small and avoid leverage until you feel perfectly confident. The market may always move against you, so risk management is a must. Use Stop Loss for every position and never risk over 1% of capital per trade. Finally, remember that learning never stops — even seasoned traders continue to explore new strategies and tools.
How to Choose Your Brokerage
It is a crucial decision for every beginner. A broker does not only provide access and tools — it processes financial flows. If you trade through an unscrupulous middleman, you will never withdraw any cash. Do not be naive.
Look for a regulated provider in your area. In India, there are local and international firms. The biggest global brands are licensed, and they serve millions of clients worldwide.