During many decades, foreign currency trading was exclusively the province of major players such as national banks and multi-national corporations. The 1980s brought new regulations that allowed small investors to gain access to forex trading by opening a Margin Trading Account. To put it simply, margin accounts let you trade with more money than what is in your account. A 100-to-1 margin account allows you to trade $100,000 using only $1,000, find more help.
Risky Forex Trading is not suitable for everyone. It is important that any new trader first studies and fully understands the Foreign Exchange Markets.
Newcomers must find an experienced broker to trade with, since trading can only be done through brokers. It is always best to get a recommendation from a friend. However, in the event that this isn’t possible, the Commodity Futures Trading Commission will register a Futures Commission merchant. You will be protected from fraudulent or abusive business practices.
Open an account quickly with any broker. Once you’ve done that and added funds to your trading account, you can begin to trade. Brokers provide different types of accounts for their customers. Most brokers offer mini accounts that let traders start trading with just $250. Margin requirements differ between accounts.
It is important to check if the broker has the ability or not to do paper trades for a specific period. This is a service that most brokers offer. You can continue to trade normally, only on paper. There will be no money exchanged before you are comfortable. Paper trading is usually free for up to 30 days with most online brokers.