How to Make Money Forex Trading Online
If you are planning to learn how to make money Forex trading online, you are reading the right page. It’s no secret that the foreign exchange market has gained a lot more popularity thanks to its high volatility. More interestingly, it is possible for traders to start with a little capital only to gain high profit in this financial market.
The Best Way to Earn Money by Trading Forex Online
If you want to earn money by trading Forex, here are a few ways that you can do to get the most of it. First of all, you have to trade only with money that you can afford to lose. Similar to other online trading options out there, there is nothing risk-free in the financial market. So, be watched out!
Next, you should learn how to master your own emotions beforehand. It means that you must be in conscious control when you are trading in the market. In this guide on how to make money Forex trading online, you are recommended to use your logic than your emotions when trading Forex. Creating a comprehensive trading plan can be helpful.
After that, you need to master at least one effective trading strategy. Instead of being confused because of using too many trading strategies, it is better for you to master one trading strategy which is really effective for your trading personality. For example, you can focus more on price action strategy or any other strategy that you like the most.
The last not least, you shouldn’t forget to get a good Forex trading education. In the ever-changing Forex market, continuous learning is important for every trader. Luckily, there are numerous sources to get high-quality Forex education. You can also learn from some successful Forex traders. That’s all some ways on how to make money Forex trading online.
Update January 18, 2020
What is Forex Money and How to Make Money with Forex?
This explanation is for the Forex money / Forex trading level beginners.
Forex money stands for the word foreign exchange money. How to understand foreign exchange? The following is an explanation of the phrase forex money/forex trading.
- When you go on vacation to another country, you need to exchange your money for the money of your vacation destination country.
- When you exchange your money with other countries’ currencies, in fact, you have participated in forex trading or can also be called forex trading.
- A bigger example (than your vacation cost) is a company buys large quantities of goods from another country. The company needs to get the seller’s country currency. Currency buyers and sellers certainly have a big difference. If there are many transactions against one currency, the currency will increase in rate. From the differences in the value of these currencies, we can make a profit or commonly called make money on forex.
A Real Example of How Forex Trading Money Work?
- You live in Germany. Germany’s currency is the Euro.
- On January 1, 2020, you are planned on vacation in Hawaii. Hawaii’s currency is Dollar.
- When you go on vacation, you will bring 1000 Euros. Then you exchange your Euros for US Dollars.
- When you exchange money from Euros to US Dollars, the exchange rate is 1.3 dollars for each Euro. Then you will get 1300 US Dollars from this money exchange.
- Now you have 1300 US dollars in your pocket.
- Your vacation must be postponed for some reason until January 2, 2020. Your vacation postponed for 1 day only.
- On January 2, 2020, the exchange rate between the Euro to the Dollar changed to 1.2 per Euro.
- From this condition, you can exchange your US$ 1300 (step 5) for Euro. When you do this you will get 1083.33 Euros.
- You’ve gained 83.33 Euros for only 1 day easily. Very easily.
- That’s how forex money or forex trading works. I hope you understand my explanation.
The Easy Way Forex Money/Trading Money Online
In the example of the illustration above, you are planned to vacation then exchange money to local currency. Your vacation is canceled a day, later you sell dollars and buy euros when the dollar exchange rate rises. You got 83.33 euros.
Now there is an easier way to trade currency only from home, even from anywhere and at any time. You can buy and sell currencies through online exchange offices called brokers. With brokers, you can buy and sell currencies quickly when the currency fluctuates.
And now, you can take a vacation while buying and selling forex through brokes. Very easy right? The forex market opens 24 hours a day, 5 days a week.
How to Select Best Forex Broker – Trusted Forex Broker
To choose a broker that can be trusted is easy and difficult work. Quite confusing. But do not worry, here I will give good tips on how to choose a reliable broker.
1. Choose a Registered Forex Broker
To find out whether a broker can be trusted or not, check with the regulatory agency. Here are some regulatory agencies that can be used as a reference for you.
- The United States; National Futures Association http://www.nfa.futures.org/
- United States; Commodity Futures Trading Commission http://www.cftc.gov/
- Australia; Australian Securities and Investment Commission http://www.asic.gov.au/
- United Kingdom; Financial Conduct Authority http://www.fca.org.uk/
- Canada; Investment Information Regulatory Organization of Canada http://www.iiroc.ca/about/governance/Pages/default.aspx
- Germany; Bundesanstalt für Finanzdienstleistungsaufsicht http://www.bafin.de/
For bodies in other countries please find out. The point is to make sure the broker you will trust for your money is registered there.
2. Choose Broker with Cheapest Rates and Most affordable Transaction Costs
Every transaction you make with a broker will be there a transaction fee. So please choose the transaction cost is the lowest.
3. Choose a Broker whose Deposit and Withdrawal Process is Fast and Easy
This is one reliable broker indicator. Choose a broker like this.
4. Choose a Broker Whose Trading Platform Can Help You
Please note, when trading activities are running, all trading activities are carried out on the platform provided by the broker that we have chosen. Choose a broker that offers a user-friendly platform.
Several Platform As Your Reference:
- TD Ameritrade
- Merrill Edge
- Interactive Brokers
- Charles Schwab
- Ally Invest
- Interactive Brokers
5. Choose a Broker That Provides Customer Service
If you face difficulties during forex trading, you can ask for help from the customer service provided by the broker.
Those are five tips when choosing a broker that is reliable and trustworthy.