Trade Forex Online – How to Trade and which brokers to use
UK Share Trading understands that Trading Forex online is one of the most popular forms of trading. Choosing the best online Forex Broker can be as difficult as trading Forex itself!
Forex brokers usually offer high leverages. A leverage of 1:200 would mean if you deposited £1000 you could actually be trading with the equivalent of £200000. With this in mind you can buy into large amounts of currency cfd's. This is why trading Forex online is regarded to many as a high risk. Buy at the wrong time and you can quickly lose your whole deposit. If you are not an expert and just started trading Forex online, we highly recommend that you have some kind of training, or begin using a demo plus500 account before you start trading for real money. Never trade with more money than you can afford to lose. This may all sound very negative, but when buying leveraged products care must be taken.
A good tip is to always do your background knowledge, do not just randomly buy forex cfd's and hope for the best, this is no better than sticking your money on a roulette wheel. Pick a recommended forex broker, read up on currencies and how they fluctuate, before you place your orders.
Oh and before I forget, start reading the financial times rather than the sun or the daily star!
One of the most traded pair of Forex trading online is the EUR/USD. Another one that day traders like the most due to its high volatility is GBP/JPY. This is very similar to trading gold and silver, as gold is more predictable but silver can be much more volatile. Many traders buy silver as they prefer the bigger percentage rises, but be aware, they are as volatile when they crash. Please take a look at the different currency cfd's you can trade in. They are always in pairs. We advise you pick no more than three pairs, study them and get familiar with them. You have a better chance of being successful by having great knowledge on 3 pairs, than having little knowledge on 10.
Don't rule out some training! The best online Forex Brokers in the UK offer some form of training. There are some great courses available both online and through established forex trading brokers, such as plus500. There is lots of free information out there, your reading some now! people are more willing to help than you might think. We are always here to offer support and advice, should you want it. Our strongest bit of advice is to have a go with the demo account, you have nothing to lose and can learn quickly by being hands on. It will give you a good feel for how quickly prices can jump up and down, and how that affects your equity.
So if I have not empathised enough already, pick one of the best online Forex Brokers that offer a demo account and try the demo account first as mentioned above. Trading Forex is a risk and you would be wise to try before you buy. Once you feel more confident deposit the minimum amount required to trade so you are only risking what you put in. Once you become comfortable with how it all works, you can then increase your deposits.
Make sure you utilize and Learn how to enter and exit trades. The best online forex brokers have the appropriate tools and system, which demonstrates and teaches you. Following the markets on various charts is a popular method that professional traders have been using for over a hundred years.
Decide on the currencies cfds you want to buy and sell, and stick to them. Prices are live on the brokers trading platform, and you can monitor them online using one of the best online Forex brokers trading software. An example of how a countries currency may jump up is, there may be strong demand for a particular currency due to traders wanting to trade in the country's stock market. If the country suffers an economic downturn, the opposite will happen and people will lose confidence and sell.
Learn to Determine your margin. When you start Forex trading online, trade with a small amount of money which still enables you to buy more with the high leverages offered.
Find what works and stick to what works well for you, everybody is different. If you wish to trade small amounts and you enjoy it, buy and sell on a frequent basis (daily). This can be better than trading over a long period of time. Of course try new things, but why not utilize the demo account first? Its all about trial and error, the more experience you have the better chance you have of being a successful trader. They say content is key for websites, where trading shares online, knowledge is key.
One last tip is to keep a trade journal to track your trades. Follow your trading plan. If you have already picked the trading tools in your plan, do not go against your trading strategy. Always stick to your plan, and stick with one of the best online Forex Brokers if you want to succeed in this field.
A reliable trading platform – Plus 500 is authorized and regulated by well-regarded financial regulators: The Financial Conduct Authority in the UK and the ASIC in Australia. Plus500 is also listed on the London Stock Exchange and so follows best practice corporate governance.