Forex trading is a lucrative business

For many years, foreign exchange was a market that only major players could access. These included national banks as well as multinational companies. In the 1980s, however, new rules allowed smaller investors the opportunity to participate in the forex trading calculator market using a Margin Account. Simply put, Getting Into The Lucrative World Of Forex Trading Articles A margin account allows traders to use more funds than they actually have on their trading accounts. You can invest $1,000 and trade $100,000 on a margin account.

Forex trading has many risks and it isn’t easy. The first step for any novice trader is to study carefully the foreign exchange market and to learn all the ins-and-outs of trading.

As all trading has to be done through a brokerage, the novice will need some training and also find an appropriate broker. In most cases, a recommendation from a friend is the best way to get started. However, if this is not available, then you can choose a Futures Commission Merchant registered at the Commodity Futures Trading Commission. The CFTC will give you protection from fraud as well as abusive trade practices.

Trading can be started as soon as you open an online account. Brokers usually offer multiple accounts, and many of these are “mini”, which allow for trading to be started as low as $2,000. Each account will have a different trading margin.

If you are looking for a good broker, one thing to look out for is the option of doing paper or simulated trades. Many good brokers allow you to use this service to learn the ropes of trading. Some online brokers will allow free trades on paper for up 30 days.