If there’s something essentially needed to trade Forex, it is a trading
platform! If you are assuming that trading is ideal for absolute beginners, I’d
say yes, but you are not going to make millions overnight. If you look at
Forex trading like gambling, you will not be able to become a profitable
trader because greed will invade you. If you want to become a great trader,
you must have skills and patience. Also, you must keep practicing trading as
it helps to shape up your trading style into a better version. Once you do your
homework, you’d feel as if you are good to go. But then, Forex trading
knowledge can’t be accumulated into a few pages or days. It is a continuous
learning process. If you have just started with the basics of Forex trading, you
have a lot more to learn. I have already discussed selecting the right broker,
but remember when you are selecting a broker you must consider the demo
account option. A beginner should have access to a user-friendly platform
that can be easily handled when trading.
A beginner’s journey is already complex, so when the trader doesn’t select
the right platform, the difficulties increase. When the trading platform is easy
to understand, you will not have difficulties when trying out new strategies
and techniques on the demo account. There are many reliable brokers that
you can select when you are trading Forex, but the problem is finding the
ideal broker. To earn extra income, Forex is a good choice. But it doesn’t
mean Forex can be traded as the main source of income. However, either
main income or part-time income, you must find the ideal broker and an
excellent platform to keep going in trading. Even though there are many good
brokers, you must do your research to find the right one that offers the most
straightforward trading platform. I know, you will encounter difficulties
when selecting the right broker, so let me help you.
Before you settle for an ideal platform check whether the platform is reliable;
it is one of the most crucial factors that you must consider when selecting a
trading platform. You don’t want to lose all the money that you collected, so
make sure to find a platform that you can rely on. If you’re going to deposit
and withdraw your cash without facing any issues, the trading platform must
Another important factor is charges related to the platform. You must
consider the charges because your profits will disappear even before you
know it if the charges are high. Besides, you are just starting your journey so
your income will not be massive. The smaller income that you gain must be
protected, so for that, you must consider the charges related to the trading
You must next consider the licensing factor of the Forex platforms. If the
relevant authorities monitor the platform, they are unlikely to fool you. The
trading platforms will work according to terms and conditions, so you don’t
have to worry when you are trading through it. But to find whether the
platform is licensed, you must do some research even if it is tough. Along
with these, you must consider the simplicity in the Forex trading platform,
but due to the software used, eventually, almost all the trading platforms have
become easier to handle. In the meantime, don’t forget to consider the
leverage, margin, and other requirements that generally should be considered
when selecting a trading platform. Once you select the ideal platform, you
will be able to trade in a hassle-free way. However, there’s more to learn
about Forex trading platforms. So, keep reading!
There are two types of platform, such as commercial and prop platforms.
Before you pick any, you must ensure to understand the types in detail. Thus,
prop platforms are designed by Forex brokers, and specialized companies
develop commercial platforms. However, there are unique features for both
the trading platforms. Even though the prop platforms are considerable, there
are times when you might want to change the broker. But when you try to do
it, you have to learn the new platform from scratch.
Basically, prop platforms are not suitable for naïve traders because you might
have to struggle a lot to understand the sophisticated features. But, why do
these trading platforms include complex features? Well, a Forex broker’s
main duty is not to create and manage trading platforms. Hence, they don’t
spend much time to introduce better trading tools and features to prop
platforms. For example, if you consider Aplari or FXCM you might find it
difficult to handle because brokers develop these. Beginners like you need a
lot of time to get adjusted with the trading platform. But, I don’t say trade
execution speed is terrible because it is excellent in prop platforms, yet
beginners will have a tough time understanding this platform.
So, beginners like you can consider the platforms designed by professional
companies. One of the most common trading software is Metatrader. This is a
user-friendly and a high standard platform that you can consider even if you
don’t have experience. But if you are looking for a platform that includes
broker feeds, then this is not going to help because the commercial platform
has poor customization. These companies sell commercial platforms to Forex
brokers so the benefits may be biased towards the broker, but not the trader.
Yet, as beginners, you are not going to find anything better than commercial
platforms because they are extremely user-friendly and flexible.
So that’s about the types of platforms that you will come across. But, I’m
pretty sure you’ll have some doubts related to selecting the right trading
platform. Hence, I’ll solve some of the common questions below.
What to consider when selecting the right platform?
You already know this, yet let me provide a brief answer. As mentioned, you
must consider reliability, trading conditions, licensing, charges, and userfriendly interface. But, before you make a decision, it is better to read some
reviews about the platform so that you will make a solid decision.
Which Forex software will be ideal?
A technical trader must consider a comfortable charting platform. The
platform that you have selected must have all the necessary tools. Only if you
select the right trading platform will you be able to enjoy trading. A
fundamental trader must consider the news and analysis factor and check
whether it is accessible by the Forex software that the trader has selected.
Should you trust the platforms that provide exclusive offers?
You already know when something is too good to be true, we shouldn’t rely
on it. Just like that, if a platform is providing exclusive things that you cannot
fathom, then you must think twice before considering that platform. If they
are offering so much, they should have massive profits. If yes, then from
where do they get so much profit? Instead of falling for exclusive offers, you
can find a platform that is reliable and reasonable.
I hope these questions and answers cleared most doubts that you had about
trading platforms. However, it is better to get some idea about the famous
trading platforms. Let’s get started!
Both MT4 and MT5 were introduced by one company some time back. The
best thing about MetaTrader 5 is that you can use it to trade options and stock
trading. Most traders who trade on the stock market along with the Forex
market consider MT5 because it is simple and beneficial.
Currently, a higher percentage of traders use MetaTrader 4 to trade Forex.
Even brokers recommend MT4 as the best trading platform. Yet, certain fund
managers and professional traders don’t prefer MT4. Beginners like you can
benefit immensely from this platform because it is user-friendly. If you have
selected the right broker who offers MT4, you will be able to enjoy
comparatively cheap prices. Also, this is an old platform provided to Forex
traders. You must also note that this platform has a great team to solve issues
related to trading. But sadly, fund managers believe that trade execution is
not as fast as they want.
This is the oldest platform remaining in the industry. Even now, some traders
prefer using this trading platform because it is easy to handle. Also, this
platform has special features that can be enjoyed by traders.
This is for fund managers and professional traders because this platform has
speed and high-end technology required by professional traders and
managers. This platform has some issues with the user-friendly option, but
fund managers and professional traders don’t worry about it.
Finally, you must understand that the trading platform is all about how
comfortable you are with the platform. It should provide an easy path to enter
and exit trades while providing the user-friendly feature. If you select the
right platform, you will be able to make a solid trading decision. But, making
profits will depend on your skill, so you can’t entirely depend on the trading
platform. Of course, it is a supporting factor, but it is not a reason to make
profits. If you want to reach success in trading, you must not think twice to
get help from Forex mentors and professionals. Anyway, let me provide some
insights into some other factors as well.
Opening an Account
You must be excited about Forex trading. But, without learning the ways to
open an account, how will you even trade? With online Forex trading, the
excitement to trade Forex has increased immensely. However, to start trading
Forex, you must find a broker, select a trading platform, and then open an
account. But the part of opening an account is pretty easy. To open an
account, you need certain things including name, email, address, contact
number, account type, a password for the account, citizenship, date of birth,
employment details, Tax ID, and a few more financial questions. The steps of
opening an account will differ from one broker to another, yet the following
are the general procedures to open an account:
You must provide all the required information as mentioned. Sometimes, you
might have to fill the application with the details related to trading
Select the broker and check for the suitable and available account.
After completing the application, register with your username, and then
you’ll receive the credentials to your Forex trading account. Now, you’ll
have access to the broker’s client portal.
And then, transfer the deposit funds through any of the possible payment
methods to your trading account. But remember, you might have to bear
charges as per the payment method.
Once the funding procedure is complete, you can then trade Forex. But, your
broker will provide necessary guidance and ideas before you enter into live
Once you complete these procedures, you are good to begin your journey.
But, are you wondering why you have to follow all these hectic rules and
regulations? Well, Forex market wasn’t filled with rules and regulations, but
once the market allowed retail trading, the rules and regulations became
compulsory. If the market wasn’t strict, it would be easy for the market
participants to gamble on the market. The factor of reliability will become
questionable. Also, you will not find brokers who don’t require these details.
On the other hand, if you find brokers who don’t ask these questions, then
you have to think about opening an account. But, I’ve already discussed
finding the right broker, so you can find the right broker if you follow the
steps that I mentioned.
Well, an important thing about opening an account is risk disclosure. As a
beginner, you are likely to be mindless about this factor, but remember, this
is very important. If you are not aware of this, you might end up losing all
your hard-earned money. Hence, you must make sure to read and understand
everything before making a decision. I want to tell all new traders not to risk
the amount that you are afraid to lose. Once you risk more than you are
comfortable with, you have a constant fear. And in case one of the trades
becomes a loss you will be depressed and frustrated. You need to be
emotionally fit to become a profitable trader in the Forex market.
Making a Trade
Once you have opened an account, the next thing is making a trade. You
must begin with your trading platform.
Before you look at the chart, decide the currency pair that you are planning to
trade. And then, open the chart to find the timeframe.
Next, you must include indicators to your chart. You can decide the indicator
as per your trading style. Indicators will make your decisions easier.
And then, place the order by considering the price moment. You can consider
“go short” or “go long” by reading the market movements.
Next, consider the profit levels and stop loss placement. You can avoid this
and trade manually, but if you don’t want to fall into risks, you must consider
this step. Through stop loss, you can avoid risks and limit your losses because
it will stop your trade when the market moves against you.
And then, you have to wait until your order is confirmed. After the
confirmation, you will receive the ticket number. This number should be used
when you face any issues. You can reference this when you talk to your
broker about the order.
The step of waiting is the hardest of all. Usually, beginners don’t move their
eyes from the screen. Instead, they keep staring at the screen. But some
traders leave the market to do its part and get away from the market.
However, it is better if you have a proper risk-reward ratio.
Finally, if the trade moves as per your plan, you’ll receive a profit. If not,
you’ll have to accept the loss.
Remember, you can’t expect only profitable trades from the Forex market
because it is impossible. Hence, you must prepare your mind to digest losses
if you face any. It is better to be prepared, right? However, you’ll do great in
Forex trading if you plan accordingly but not without risk management. Most
naïve traders fail to manage risks in trading so that they end up losing a lot.
So, let me provide some ideas about risk management.
In order to minimize the losses faced by the naïve traders, it is important to
give enough importance to risk management. Each beginner must enter the
market with some understanding of the risks management techniques. Most
people enter the Forex market with the intention of making money. Of
course, you can, and it should be the intention. But, there is a thin line
between greed and passion. If your passion is to trade Forex and make
money, then you’ll achieve it. But if you are greedy to make money, then
things will not work as you want. You already know that the Forex market is
a constantly changing market, so you will not be able to remain in this market
without proper risk management techniques. Anyway, here are some tips that
will help you become better at risk management.
Learn to accept losses
Think about your life. Have you never faced a loss? Obviously, you would
have. In fact, some people fail in certain things that they are really good at.
Thus, you must accept that even in Forex trading you will face losses and just
because you face losses don’t mean you will become a loser. Even the
professional traders might have faced losses when they were amateurs.
Sometimes, the best trade can become a failure. So, Forex is all about being
persistent despite the losses and hardships. But, you can always minimize
losses by following the money and risk management.
Understand position sizing
This is one of the important concepts that every trader must understand. If
you fail to understand this, you will fail to manage risk successfully.
Basically, position sizing emphasizes the capital amount that a trader must
allocate for a certain trade. Your risk depends on the capital amount that you
risk in trading. Both professionals and amateurs must know the importance of
position sizing. There are different methods to calculate position size, so try
to learn about it before entering into a trade.
Learn to handle your risk
Of course, you have entered the Forex market with the intention of making
money. But, it is not the only duty that you have when you are in the Forex
market. You must become the one who controls your risks. It is vital for you
to prepare yourself to face risks when you are trading. You must have the
hawk-eyed vision about risks in trading. If you are clear about the risks in
trading, you would be able to protect your capital.
Greed isn’t healthy
The amateur traders are the ones who have this issue. But, even the
professionals would have been greedy about making money and then, learned
their lessons for life. And that’s why they have become professionals. Just
like that, even the naïve traders must understand that greed isn’t healthy. The
way a professional trader reaches the market is a lot more different from the
way a naïve trader reaches it. A professional trader is aware of the market and
will not fall into the traps. But, a naïve trader doesn’t have the experience in
trading, so he or she is likely to make mistakes. Thus, if you want to keep
your mistakes under control, you have to control your greed to make money.
Of course, if you are consistent in trading, you can make money, so don’t risk
a huge amount and face losses.
Get to know hedging techniques
Every naïve trader must learn hedging techniques before entering into the
Forex market. If you master hedging techniques, you’ll be able to protect
your account from potential risks. One of the common techniques is
diversifying the portfolio so that your risks get diversified.
Focus on the correlation technique
If you select currency pairs with similar correlation, then mostly the
movements of the currency pairs will be similar as well. Even if they are
moving oppositely, it will happen at the same time. If you make this mistake,
you must be ready to handle the doubled risks in trading. Of course, if you
have traded successfully, your profits will be multiplied too. But, as
beginners, you must make sure to stay in the safe zone. To avoid this
problem, you must learn the currency correlations.
Keep leverage in control
Leverage is beneficial until you treat it like a benefit. If you overuse it, you’ll
have to get through with the consequences. Basically, Forex leverage helps
you to trade positions that are more than your deposit. Definitely, this helps
to increase profits. Yet, you’ll have to manage risks equally. Most naïve
traders get attracted to leverage, and they end up trading more than their
potential. But, if you overuse leverage, you will not be able to go a long way
in trading. Hence, you must understand that a moderate level of leverage is
good for trading. And, this will help you control risks in trading.
Benefit from Stop-Loss
You can manage loss by placing stop-loss. This advance action will protect
the trader from facing higher risks. Once you place stop-loss, you don’t have
to worry about making a huge loss because the stop-loss placement will do
the needful thing. Even if the price doesn’t move in the right direction, you
will not be earning a further loss. If you cut losses short, you’ll be able to
utilize that money for some better trades.
I hope you’ll utilize these tips to manage risks in trading. Only if you manage
trading risks will you be able to become successful in trading!
If there’s something essentially needed to trade Forex, it is a trading