What’s It Going To Cost For You To Start Trading Forex?

What's it going to cost for you to start trading forex?

Starting with Forex trading shouldn’t cost a thing in the beginning, as long as you don’t trade with real money, you won’t be spending anything.

  • We strongly recommend you start with a demo account for your first year, that way you can get a feel for it and won’t lose any money in the process. You’ll be able to make as many mistakes as you like, and that’s the best way to learn after all.
  • When you start feeling confident about trading, you can begin to take more risks and start trading with real money, in order to do that, you’ll need to make a live account.
  • Opening a live account is pretty cheap. Technically, the minimum amount you can start with is $1, and that’ll be the cost of the account. However, you’ll need to put more than a dollar if you want to start seriously. We recommend you start with $500.
  • Remember, the key to success is patience. You need to start slowly and build your balance from there. Don’t take significant risks from the start unless you insist on wasting your money.

You need to wait until you’ve started making consistent profits. That should happen around your first and second year of Forex trading. You’ll know by then if you can continue on using Forex more seriously. If you’re still not making consistent profits, don’t worry, you need to revise your strategy and figure out your mistakes. The time it takes to learn and get comfortable with trading tends to vary from person to person.

When you get the hang of Forex trading, you can start taking it more seriously. When the time comes, and you’ll know when it has come, you can open a serious account.

Now, depending on your financial situation, the amount of the money you put into it will vary. A good rule of thumb would be to only invest in it as much as you can afford to lose. That way it’ll save you a lot of trouble. There are those who are gifted and can start with only a $1000 and still make it big afterward. However, don’t try to jump the gun and be a hero. That is a sure-fire way to lose your money. We recommend you start with $5000; then again, it all depends on how much you can afford to lose, so you should take that into account.

What you should take from all of this is that the starting cost of Forex is extremely low. The barrier of entry is set in a way that enables everyone to give it a shot and figure out whether or not Forex trading is for them with a minimal amount of risk.

Currency Trading?

  • “Currency Trading” is just another phrase used for “Forex Trading”.
  • Now that you know what Forex is and how you can start trading in it, it’s time to delve into the inner workings of the whole thing; by that, we mean what you’ll actually be trading with, which are currency pairs.
  • We’ll be starting with the three most commonly traded currencies, which are the US Dollar, the British Pound, and the Euro. Now, when it comes to notations, banks and brokers use an ISO code to refer to each currency for the sake of simplicity. ‘What in tarnation is an ISO code?’ you might be wondering. Well, an ISO code is simply an abbreviation of the currencies’ name. An example of that would be referring to the US Dollar as USD, or the British pound as GBP, or the Euro as EUR.
  • ISO codes were made to be easy to remember and easily distinguishable from each other. However, there are always exceptions to the rule. For example, the Swiss Franc is ambiguously assigned the ISO code that is CHF.