Forex Account Choosing the right forex account to conduct your foreign currency exchange trading activities seems relatively easy on the surface. Unfortunately, when you look a little deeper, you’ll soon find that it’s important to choose the right account to suit you, or you could face problems later.

You’ll need a forex trading account if you intend to generate profits from trading foreign currencies, and an online forex account can give you a significant amount of freedom. When you trade online, you have the ability to place trades at any time of the day or night from anywhere in the world with an internet connection. Here are some other considerations to think about before signing up for your forex account. Trading Costs Most forex brokers don’t charge any trading fees or commissions. Instead, they charge a ‘spread’. This is the difference between the bid and ask price. They add the spread onto the price of the trade and keep this as their fee for your trade. Spreads can vary greatly between brokers. It’s important to understand how these things are calculated, as you may find that the bid/ask price represents a spread that is higher than other brokers may charge and could impact your profitability. You could also find that the type of forex trading account or online forex account you choose can impact the trading costs associated with trading. This means some brokers will charge a much lower spread for high-volume traders and charge a higher spread for those traders who place trades less frequently. Spreads

 

                 

Even though you might think one single pip (or point of currency value) might not look like much, consider trading on a 5 pip spread instead of a 4 pip spread. One tiny pip worth of currency value looks so incredibly small. Yet it still could represent a 25% on your overall trading costs. When you multiply this amount by the amount of high leverage available through most forex trading accounts, those tiny pips suddenly multiply into vast amounts of money. This is especially true with leverage available of ratios up to 200:1. Demo Account Before signing up for a forex trading account, be sure you have access to a demo version. This can allow you to see how the spreads are calculated, how the platform works and what kind of analytical information is available on your online forex account. You also have the opportunity to place trades within your demo account that can show you how quickly each trade is facilitated and executed. You’ll be more aware if that particular forex account is the right one for you before you commit any of your own money into the deals. Trade Sizes There are plenty of forex accounts that accept standard sized trades, but if you’re a little more cautious about how much of your own money you want to spend, you might consider opting for a micro trading account or even a mini trading account. These can allow you to place trades for significantly smaller amounts, which can limit the amount of capital you expose during each trade. You will also find that the amount of deposit needed to begin trading is also substantially lower, ranging from just $25 to get started up to around $200. These types of online forex accounts can be an excellent way to get a feel for forex trading, Be the first to comment - What do you think? Posted by admin - September 27, 2011 at 10:50 pm Categories: Forex Trading Account Tags: Can Forex Forums Help When people are just starting out in forex trading, they are often looking for hints and tips from other forex traders. Forums can be a great place to go to get some interesting information and advice from others who are investing and working in the forex currency market. Forums are also a good place to get a review of the latest software program or book that is available on the market. It can be very helpful to hear other people’s experiences with these products so that you can make a good decision on whether they should be used in your own trading. It is also a good way to avoid the mistakes that others have made when forex trading. With the current rate of ninety five percent of forex traders failing, you will need all the help that you can get. There is nothing wrong with taking the advice of others, but you should use your own common sense as well. Forums are not necessarily filled with successful traders and the advice that they are giving might not be appropriate for your situation. Take the advice with a grain of salt and include your own research and education with it to make the best decisions about your trading business. You can also pose your own questions to the forum to get a diverse group of answers and a healthy debate which will ultimately give you the information that you are looking for. Whenever you are taking advice from these forums it is always a good idea to take a balance of opinions to make the best choices for your own business. There is a danger of getting too involved in the forex forums, however. Your time is a valuable commodity in your business. If you spend too much time participating in discussions or debates, you are not spending enough time researching your own trades and information. Spend more time with your simulated forex account than you do in the forums listening to others discuss forex trading. You will gain more knowledge from your own experience than you would by hanging out in a discussion forum. Remember that you really don’t know the people on the forum. You may have seen their answers frequently on the forum and they have developed a reputation for giving good advice on forex trading, but in reality, they have nothing to lose by giving advice. Keep this in mind when you are learning from the discussion forums. The key to success in forex trading is education and experience. There is a role to play for the discussion forums where others who are doing the same thing as you to get together and discuss the problems and successes that they have had. You can also pose a few questions if you are having difficulty understanding your own forex trading. Most people are happy to help and the forums are mostly a friendly place to connect with others who are going through the same thing as you