Since setting up this blog, many people have as me about how they go about Getting started in currency trading, and it is relatively easy to do. However, before starting it is important to have some risk capital. Risk capital is basically money you can afford to lose that would not hurt you a great deal financially. In other words, don’t bet the farm!
Many brokers have very low minimums and a few have no minimum at all, so you can get started with a very small amount, even $100. Personally, I would advise against starting with less than $1,000 and would strongly recommend you get a micro account for any amount less than $10,000, especially for new traders. This is an account that allows the trading of $1,000 lots. Most new currency traders lose a large proportion or even all of their trading account by depositing a very small amount and trading positions that are far too large. Many brokers do not seem to mind traders doing this, as in some cases it can be profitable for their clients to lose money. For me, this certainly leaves a big question mark in regards to them being irresponsible. I made a post on the responsibility of brokers here.
Opening an account with a currency trading brokerage is relatively simple, you just need to fill in a form and submit some form of government issued ID and usually within a few days (sometimes even sooner) you can begin trading.
Most new traders begin with intraday trading and this usually results in big losses. Personally I only trade the longer time frames, as I find trends tend to be much more stable.
There are many different forex platforms that brokers use. Some brokers their own trading platform, unique to them. Others use the popular Metatrader platform.
It’s a good idea to make sure you are confident you know everything about the workings of your trading platform before you begin trading live. Most brokers offer a demo account so you can spend a few days or weeks getting used to it before you start trading live with it. A mistake in your trading orders could be costly and must be avoided!
So as you can see getting started in currency trading is relatively straight forward. Firstly, assess the amount of risk capital you have for trading, then find a broker.
Some brokers that offer low minimums are:
Please note, I have provided this list for informational purposes only. I am in no way endorsing the quality of these currency trading firms.
Happy Trading
