Many people from Asia, Africa, and the Pacific have been looking at Forex as a secondary income source. However, in the past years, more chose to start Forex in India and other countries when faced with the economic challenges from the covid-19 pandemic.
In this beginner’s guide, we’ll cover the basics on how to get started with fore trading, including
- What Forex is
- Starting your research
- Finding the right broker
- How the market functions
- And how to get started
What is Forex Trading?
Forex stands for foreign exchange. When trading Forex, you purchase one currency and sell it as a different currency, known as a currency pair. Generally, the trading process is similar to the way you’d exchange currencies when traveling abroad. However, actual trading calls for more strategy and research.
Learning the Basics
The foundation of forex trading is knowledge, research, and analysis. Therefore, the trade comes with a never-ending learning curve. Start educating yourself with the basics, such as understanding the currency graphs, choosing your currency pair, and the best day trading strategies.
You should also read up on your local forex trading regulations. While forex trading is legal in most countries, there are different rules and restrictions you may need to follow.
Finding a Broker
Once you think you’ve done enough studying, it’s time to get hands-on. Your first goal is to find a legitimate and reputable broker.
A reliable broker is a trader’s best friend. When looking for a broker, pay attention to the following aspects:
- Proper licensing
- Third-party user reviews
- Trade software compatibility
- Mobile compatibility
- Customer service hours
- Account fees
Unfortunately, there are plenty of scammer brokers out in the world. Therefore, make sure you’ve done enough research before opening an account.
Hours of Operations
Unlike the stock market, the forex market is open 24/5 from 5 p.m. EST on Sunday until 4 p.m. EST on Friday. This means traders are less affected by time zone differences, which is another reason why Forex is now one of the biggest trading markets in the world.
Meanwhile, your broker should provide you with 24/7 access to your account and customer service. This allows you to monitor your account over the weekend and plan for the next week.
Opening a Demo Account
Don’t feel comfortable with investing real money yet? No worries. Most forex brokers will let you open a demo account where no monetary gain or loss actually happens.
A demo account is a great way to familiarize yourself with online trading tools, general trading processes, and building a basic workflow for yourself. A demo account is also beneficial for trial-and-errors since it takes actual loss out of the picture.
Start Trading
Whether you want to start forex trading in India or any other country where you believe there is a profit to be made between currency value differences, now is the time!
Start with learning the basics and invest in a few good books that will teach you beginner’s strategies. Then, once you open a demo account with a trustworthy broker, just stay calm and learn as you go.
Source: https://smartyindian.com/
