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FX / Forex, with a smaller budget?
Question : FX / Forex, with a smaller budget?
Hi, Everyone! I am a FX beginner.
I am now taking a FX online course, and learn how to trade without making too much risk (definitely day trade). Right now, I am practicing with a Demo account.
This online course is introducing us a website for our practice, which has a contract of 100,000 of the base currency . With my budget, for me to be qualify for this, i have to use a high leverage, I was hoping to use only a couple of thousand dollars to start with (like a mini account). I dont want to use a high leverage.
Do you know and recommend any reputable/reliable online websites which you have actually used, and where someone like me can start (with
smaller amount money ) ?
Thank you in advance.
I did not know that Anyone knows a site called Oanda ?
I could not find a mini account service at FXCM ..
Thank you very much for all your feedbacks.
I am still reading your posts, so please add more information if any. Thanks!
Oh, also.. What currency combinations do you recommend? I will be starting with USD as my base. I have practiced with my practice site, with Australian, New Zealand, Euro, & Pound.
Thank you so much for all your input.
I only can choose one best answer. ;-(
fx forex
Best answer:
Answer by FirePips
Let me start with being very honest with you. You will lose those couple of thousand dollars in first few weeks of trading. Sorry if that sounds harsh but this is the reality of 95% trades who starts in Forex.
However what you will learn from this experience is invaluable. I’ll not spoil that for you right now but I would recommend reading Trading Psychology books. Mark Douglas – The Disciplined Trader is a must read.
Back to your original question, There is nothing wrong with higher leverage as long you use Money Management. Try not to risk more than 2% of your capital in one trade and overall 9% at any time.
Regarding brokers look for the ones that are regulated and offer tighter spreads on Mini Account. FXCM is not bad to start but feel free to ask around. You may also want to consider brokers that offer MT4 charting. Oanda is also quite good with their flexible trade size.
Hope this helps.
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#2 written by SS Fin 1 year ago
Oanda lets you start with just $ 1 though obviously that’s too small. Anything from $ 250-500 is a decent start with trading forex as long as you follow money management and don’t risk more than 2% (maximum 5%) on each trade.
Stick to the major pairs for now (EUR/USD and GBP/JPY are my favorites). The spreads will be small on these pairs and there won’t be delays in dealing desk execution.
At the same time, avoid using a leverage more than 1:20 or 1:30 as you risk losing your trading money on a couple of losses.
Trade on longer term charts (1hr / 4hr / daily) and stick to a method that works for you. Good luck!
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#3 written by Suzane P 1 year ago
Hi there…
Thats good to know that you are so keen in learning forex trading. The online trading environment for foreign exchange encompasses the largest, most dynamic capital market in the world with more than USD 3 trillion traded daily. The Forex market is a continuous, 24/5 marketplace open from Sunday afternoon (4 PM EDT) through the close of the US markets on Friday (5 PM EDT). The Forex market is where investors can trade one currency against another currency
As forex traders we can never know what price is to “low” and what price is to “high”. Don’t be afraid to join a trend. I know that psychologically this can be difficult sometimes. You are always afraid that you will be entering the trend at it’s end. This rule is important but must not be followed blindly but rather smartly. Suppose you are day trading the EUR/USD. You know that the average daily range of the pair is 90 or 100 pips. If your system is telling you to go long at a point where the market has already moved 80 pips and place a profit objective of 50 pips, would that be a smart move? Obviously not.
All the best!
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#4 written by Elliott 1 year ago
I have been trading forex for years and found a few brokers that are much easier for new traders to use. They have simple and easy to use platforms with low minimum deposits and the option to trade smaller lots. You can find the review at http://www.forexlane.com/brokers.html
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#5 written by Zaki 1 year ago
you may check on this source. they enable their traders to trade with small amounts plus they have innovative tools exclusively for use only by their traders which aim to make online trading easier and more transparent. these tools provides traders a clear and complete picture of all profit/loss scenarios, see what the other traders are trading, see the popularity of a currency pair, the deal direction and structure of an open deal. they even give special privileges and terms to frequent traders. all the best.
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#6 written by Rutu M 3 1 year ago
Hello Kitty,
You may check trading forex online website like http://tradingforexonline.info/ ,etc . - Comment Feed for this Post
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