Tuesday, May 14, 2013

Tips on Learning Forex for Free with a Practice Account

If you’re a frequent traveler to foreign countries, then you must have the basic concept of foreign exchange or forex. The conversion of one currency (your currency) to the currency of that country you’re visiting needs a particular exchange rate. Every currency floats against others throughout the globe. Forex traders speculate the movement of one currency’s relation to another. According to a leading forex website, a very few percentage of traders can make money by trading in the foreign exchange market. So if you want to belong to that category, you must take advantage of online resources like practice accounts, online trading classes, self-instruction course books, e-books etc. for free. 

Here is how to start off with forex trading for free.

  • Create a practice account – At the outset, you need to create a forex practice account, also referred to as a virtual account, for free. There are a number of online companies with which you can open your free simulator account. As a new trader, you must be accustomed with how to make trades and to the mistakes prior to investing real cash to transactions. Since forex training comes up with high leverage, you must check your account balance and account information regularly. Companies like Forex Loft offer real-time news and quotes on forex market. They also offer free practice account by creating which you can download online tools, graphs and charts. Such accounts can be accessed for free for as long as 30 consecutive days. However, sometimes extension is also possible on request. 
  • Practice with a paper account – You can do it until your transactions make profit. You need to use spreadsheets to review the transactions. Since many currencies can be traded with a few cents or even less in a single trading session, you must learn how the traders utilize borrowed amount to increase their return on investment. For instance, a trader controls 100,000 USD/GBP and believes that the dollar price will rise against the pounds. If his trade moves just a few cents in his favor, then he may earn thousands of dollars. Since he can borrow up to 50 times of the amount he has in his account, the return on investment will be huge. 50 times’ equity is often offered to most forex traders. This leverage magnifies profit and/or loss of a trade and so may not be suitable for all forex traders. 
  • Go through online classes – You may go through online classes as well as training courses for free. You may also get course books at free of cost through your regular library’s Internet system. Any reputed library allows their members to access their Internet system. For free online training session, you’re required to have prior registration. You can use free online course books to implement foreign exchange trades in a virtual forex practice account. 

Discussed above are some useful tips with which you can get a hold over forex trading for free.

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