Forex for a trader
Binary forex trading for beginners

Binary forex trading for beginnersBinary Options Trading Guide. Welcome To Our New Traders “Dummies Guide” On The Basics Of Binary Options Hi and welcome to the BinaryTrading. org’s New Binary Option Traders Guide. This page covers the basic but important facts about binary options you need to know before you begin trading. It is a good idea to bookmark this page as you will likely reference it in the future. Here is an outline of the things you will learn. What is a Binary Option? Types of Binary Option Trades Available Basic Strategies Tools You May Want List of “Things To Know” Example Trades Getting Started. What Are Binary Options Themselves. Binary options are very simple option contract with a fixed risk and fixed reward . These options are called binary options because there is a “one or the other choice” and a one or the other payout after the option expires. One or the other choices include up or down, or touch and notouch. In computer code binary means 1 or 0, or one or the other. scg_html_rbox_marketsworld The way a binary option works is from the traders perspective (yours) is that you choose whether or not a certain underlying asset (a stock, commodity, currency etc) is going to go up or down in a certain amount of time. You essentially bet money on this prediction. You are shown how much money up front you will earn if your prediction is correct.

If your prediction is wrong, you lose your bet and the money risked. If you predict correctly you get your money risked back PLUS a return. These returns usually are between 70-85%. A brief example would be that you predict the price of gold to rise from it’s current price of “$1612.75” one hour from now. The winning trade offers a return of 80%. You place a $100 trade on this idea. One hour from now the option contract expires (closes) and the contract is graded as a “win” or a “loss”, or “in the money” “out of the money”. Gold goes up to $1613, you predicted correctly. You get your $100 back and a return of 80% – or $80 for a total of $180. Even though gold only went up a tiny amount, you still earn the 80% return. Magnitude of price movement is not a factor in the amount of your return. Key Ingredients Of A Binary Option Trade All of the different binary option contracts have these three key ingredients that traders need to take note of. They are the expiry time, the strike price, and the payout offers. Expiry Time Strike Price Payout Offer. The expiry time is simply the length of time from the moment you ‘buy’ the option contract until it closes.

This can be as fast as 60 seconds or as long as a month. The majority of traders are trading the short term binary options, anywhere from 60 seconds to 30 minutes. The strike price is the price that you were able to enter the trade at and this is the price that determines whether or not your trade is a winner or a loser. In the brief example above, the strike price is $1612.75. This is the price that gold needed to close at above in order to win this trade. The payout offer is the return that binary option broker is offering to you. In the gold trade example above, the payout offer was 80% for a win and 0% for a loss. Some trades do have a return percentage for losses, typically up to 10% although this is broker and trade dependent. The payout offer is known up front before risking any money. Types Of Binary Options Available There are multiple types of binary options available to trade. The simplest and by far most common trade is the UpDown trade. You can learn about the different types of binary options available to trade here.

Beginner Strategies We have compiled a list of basic binary option strategies that will help you get started making higher probability trades. Tools You May Want To Use. I am going to beef up this section as new tools arrive on the market to help you make your trades. For now you can review some of the binary trading signal services on this page. Key Things To Know About Binary Trading. So now you understand the basics of trading binary options. Some key things you should remember before you dive in are these: Your risk is limited to your trade amount The minimum trade is as little as $10 You do pay for losing trades – you lose your trade amount (or the majority of it) There is plenty of risk involved. Never ever invest more with a broker than you can afford to lose. It’s risky! You never take any ownership of the underlying asset – you only “bet” on the direction of it’s price movement To make money over the long term you have to win the majority of your trades Up Down are only 1 type of binary option, there are many different kinds of trades available to make with binaries Trading binary options is designed to be easy to do. Your risk is limited to the amount you place on the trade. Your payoff is clearly stated before making the trade.

If you win a binary options trade you win a fixed amount of cash. Since there are only two possibilities, that’s the origin of the name “binary options.” Screenshot of a Binary Trading Interface – Choose Up Or Down, How Much To Risk and “Apply”. Up or Down aka ‘Call or Put’ Do you think the price of “x” is going up or down? In the screenshot above from Banc De Binary, we are looking at the current price of gold. Gold is “x”. The green line is the price movement of the gold over the course of time. The red section on the right hand side is the last moment you can trade this binary option. After that point, the option is closed for trading. It has not expired quite yet if you traded previously, however your window of trading is over. If you think the price of “Gold” is going up you place a “call”. If you think the price of “Gold” is going down, you place a “put”. Those are your only two options. Hence “Binary”. If you pick the right choice of the two you win the trade. If you pick wrong you lose the trade. There are two choices only.

‘Up or Down’. And two outcomes, ‘Win or Lose’. That is the very basics of binary trading for dummies. It is that simple, and it is designed to be that easy. Your return is clearly stated before hitting the ‘apply’ button. You will earn 72% on your investment if you finish the trade ‘in the money’. “X” can be any number of underlying assets. It can be a certain stock or it can be the price of gold or oil. It can be a currency pair or it can be the price of facebooks stock. You get to choose what underlying asset you want to trade. There is one more important factor left out of the simple illustration above and that is the expiration time or maturity date of the option. This is the point in time when the trade expires.

This is the point when the actual price of the underlying asset is determined and you find out if you finish the trade ‘in the money’ with a win, or ‘out of the money’ with a loss. If you chose ‘up, or call’ and at the the price expired higher, you win. The expiration times vary from as fast as 60 seconds to as long as hours, days and even weeks. Example Basic Binary Trade. The easiest way to explain what a binary trade looks like is to provide an example. Example Trade 1 – Trading Googles Stock With A High Low Binary Option. Screenshot From Google Finance of Current Price Of Google. Perhaps Google is doing well and you expect it to be trading above $672.10 by 3:30pm est this afternoon. A binary trade means you place a bet on that theory. Corresponding Candlestick Chart From FreeStockCharts. com For Google’s Stock Price. Above is the corresponding candlestick chart for Google, from FreeStockCharts. com. You can use this to read price action and find trading opportunities. Here is the Corresponding Trade From TradeRush. com – Risk of $1000, Return of $1700 If You Win – $100 Rebate If you Lose (10%) And here is the corresponding Binary trade offered by TradeRush. com – You risk $1000.00 that Google’s stock will be trading at or above $672.10 at 3:30pm later today.

Your return on this trade is 70% if you win and 10% if you lose. When 3:30pm rolls around and Googles stock is trading at or above $672.1.00 as you predicted, you’ll be paid $1700.00. This includes your $1000 you put up on the trade up front and the 70% return ($700). If you’re wrong and the stock is trading at less than $672.10, you receive $100, a 10% rebate, losing $900 total (Your $1000 investment amount minus the $100 return = $900 loss). In the example above, $672.10 is called the “strike price.” Since you bet in a positive direction, we would refer to this as a “call,” not a “put.” $700.00 is the “payoff value.” The date and time are called the “expiration date,” or the maturity date. The $100 is the losing return, or a 10% rebate offered sometimes on trades. Not all binary option brokers offer rebates on trades that finish out of the money. You could also have bet in the opposite direction, that the stock’s price would be trading at or below a certain lower value, which would have been a “put.” In that situation, you would need google to finish below the strike price. Usually, this would be a few pips below what the strike price would be if it was a call. This price is set by the individual broker along with the returns offered. It is up to the trader to take the trade or not. Example 2 – Tutorial on Trading The Price Of Gold With A ‘Touch Trade’ If you want to profit from the swings in the gold market, there are hardly any better ways to do so than with a binary option. With a one touch trade, the only thing that has to happen to win is that the asset hits the 1 touch price.

You bet $100 that the price of gold will touch $1617.40 by 3pm EST today. The payout for this trade is 70% if you finish in the money. If you win, you will get a payout of $170 which includes your $100 risked up front plus the $70 return (70% of $100 = $70). Since a 70% return is a bit low on the payout side, the broker offers a 15% rebate on losses. If you lose, you get $15 back and only lose $85 instead of the full $100. You can see how this can offset the lower than average return for wins. You place the trade and need the price of gold to reach the target price, or trigger price of $1617.40 before 3pm today. Luckily for you, there was a some negative news regarding the dollar’s value that drove fears of inflation. The price of gold and oil went up accordingly. When the news broke, the gold price spiked up and hit your target price. Triggering your trade to close in the money. You were paid $170 which includes your $100 bet up front plus the $70 return on your investment. You can trade one touch options at sites like marketsworld. com, not all brokers offer them even though they are the 2nd most popular form of binary trading.

A General Trading Example. Trade commodities like gold and oil with easy to buy binary options. Choose your underlying asset. IE gold, currency pair, stock etc. Decide how long until you want the option to expire. As little as 60 seconds up to a days or week. Common expiry times are 15-30 minutes. Choose the amount you wish to risk. As little as $5, as much as thousands. Decide which way you think the price is going to move (up or down). Click “Up or Down” and hit the “Apply” Button – just before hitting “Apply” you will see the exact payout if you win or lose. At expiry you have either won or lost and get the fixed payout offered prior to hitting the ‘apply’ button. You can not lose more than your risked amount and you can not make more than your fixed return, regardless of how far the price moves.

Binaries are one or the other choice with a one or the other payout or loss. Winning returns average 70-85% at the respectable brokers for most trades. If you lose, you get between 0-15%. Some brokers kick back some percentages on losses, that’s why their winning returns are sometimes a bit lower compared to the other brokers. Things To Remember Before You Begin Making Option Trades. Risk is known up front and fixed. You can not lose more than you put into any trade. You are not and can not get burned by leverage like you can with forex trading. You do not need to set ‘stop losses’. The return is the same whether you win or lose by 1 pip or 100 pips. Payouts are clearly stated and known exactly up front before risking any money on the trade. Most of the brokers we list have early closure feature.

This lets you close your option at a price they are offering any time up until the final closing minutes. You can lock in profit or minimize loss with early exit Executing the trade is easy. Choose your asset to trade, how much to risk, choose ‘up or down’ and click the ‘trade now’ button. Returns are 70-85% on average at the trading brokers listed here. No hidden costs – Your risk and full return are clearly listed. You do not have to be a financial “expert” to win. You never take any actual ownership of the underlying asset. You are just predicting what happens to the price of the asset. Your trade comes down to a ‘one or the other’ choice (hence binary ) The trading is simple by design. Getting Started. If you know what a binary option is but would like to learn how to get started trading binaries then jump back over to our page focused on the things you need to know to start trading. This page is more a basic overview of what is going on when talking about binary options. Trading Binary Options For Dummies. Anyone can trade binary options. Even a dummy can win any given binary trade, too. It is one or the other choice, it is hard to get it that wrong all of the time.

However, to be a long term winner you have to develop a method and strategy that works for you. You have to consistently profit by winning more trades than you lose. Since there is risk involved, that means that you need to create a method to succeed. You can do that by studying up on our tips and strategies to win and practicing with a no risk trading account. We also recommend learning the basics of candlestick chart reading in order to judge price action. If you are ready to take the next steps and learn more about binary trading then jump back to our Binary Trading Guide list of lessons. To continue reading through the lessons and tutorials. You certainly want to learn to read a candlestick chart as well as find the right broker to trade with. 3 Binary Options Trading Strategies For Beginners. Note!

If you are new to binary options and different strategies please go to our strategy page where we cover the topic comprehensively! If you’ve studied and understood my previous posts about the fundamentals of binary option FX trading and binary options indicators, you are now ready to trade for real. Here are 3 different strategies that I use, choose one based on your risk appetite. Good luck! Conservative Long-term Strategy. This strategy is for those who are new to this game and want to build up their capital slow and steady. The point of this strategy is to minimize risk and wait for the perfect setup on the chart. In this case the perfect setup is using the ZigZag’s last 2 points, and draw a Fibonacci between them in the direction of the trend. Draw your fibo from point 1 to point 2 for a down trend, and vice versa for an uptrend. Your target is 161.8 projection level. In order for the signal to be fully valid, there has to be a retracement to between 50 – 88.6. Higher the retracement goes, stronger the signal.

In the example above, the retracement happens next to the number 2 in the up left corner. They key here is to be patient until all 3 factors line up. The entry rule is: – Price hits Fibonacci projection level 161.8. – Price is inside or outside of the bounds of the red channel. – Value Chart hits level 8 or above. Your Expiry can be between 5 and 20 minutes. And your target is 1-2 trades per day. And money management suggestion for this strategy is to take 2 equal bids per day for 20 days. Increase your position by 50% next day. If you lose, start with the last set of bids: Day 3: 21 + 21… and so on. You should reach around 5k in profits within 20 days, and next month just start over or carry on from where you left. Top Brokers for Beginners. Semi-Conservative Strategy. The semi conservative strategy involves 4-6 trades per day. The rules are the same as for the conservative strategy, only with one exception: We take the trade at Fibonacci projection level 127 as well as 161.8. Now, for level 127 trades, I would advise not to take the trade with more than 6 minutes to the expiry. This is because usually level 127 represents a consolidation level to draw buyerssellers into the trend to get more liquidity and the price usually carries on in the direction of the trend within the next 3 candles. The rules for entry are the same as with the conservative strategy: – Value Chart hits level 8. – Price is inside the red zone. – Price hits the Fibonacci 127 projection level.

Use the same money management as with conservative strategy, but your earnings will increase faster. And remember, You have to stick with the entry rules. Now, the below strategy is a very aggressive one that defines the means of sane trading. This strategy represents the use of price cycles and Fibonacci sequence in fast trading. Trades are not only taken at levels 127 and 161.8, but also at breakouts. And Fibonacci levels are drawn for every cycle. This strategy also exploit the full potential of value charts. Above you learnt what you are hunting, where to find your prey, and how to bag some prey steady and safe. Now, we will go after the BIG 5. Look at the chart below, how many price cycles do you see? Yes, 9 cycles.

Now, change your zigzag indicator parameters to 2,1,1. How many short-term price cycles do you see now? Yup, 41+ short-term price cycles. In reality there are many many more, but let’s not make it too difficult. Each of these cycles is a Fibonacci sequence with a high-low-retracement-projection-reverse. Look at the chart below: Now it gets complicated and wonderful: The Fibonacci is drawn between points 1 and 2 (in light blue)and marked on value charts the last high and low, 1 and 2 respectively. Now we have the levels and wait for the retracement which can be a wick, or a full candle. Above the retracement area is the white box marked by 3, and the green candle underneath touches that box. The setup is ready when the retracement candle is followed by a red candle in the direction of the trend. Now wake up. The next red candle closes below the open of the green retracement candle, BUT it doesn’t touch value chart level 6 yet, nor the regression channels inner band. This is marked by the light blue rectangle. So this is our first breakout candle of this specific sequence. We enter PUT 10 seconds before the close of this candle, as the next candle WILL BE BEARISH, with 90% probability. This is marked by 3 PUT on the chart above. The next candle closes below our 100 Fibonacci level but DOES NOT TOUCH LEVEL 127, which means it closed below the low of our current sequence. We enter PUT 10 seconds before the close of this candle because it will be followed by a bearish candle, or 2-3 bearish candles which will reach level Fibonacci level 161.8. This trade is represented on the chart by 1 PUT. The last bearish candle hits Fibonacci level 161.8 and value chart level -8 and also the outline of the red zone, so we place a CALL. Within each price cycle between 3 points there are on average 3 ITM trade setups during normal volatility trading conditions.

And for this strategy it goes without saying that if you don’t ‘feel’ the trade or something about the setup doesn’t seem right, don’t take it and wait for the next one. This strategy will produce around 100 setups per currency pair per day, so use it wisely, and be very sure to learn it by heart before you jump in full steam. The 3 strategies explained here work for all currency pairs, commodities, stocks and indices. However, even with the conservative strategy, a trader can produce excellent results if they trade 5-6 assets, and take 2 high probability trades per asset per day. As usual leave comment below if you have any questions. Happy Trading! Binary Trading For Beginners. When becoming acquainted with binary options, beginners absolutely do not understand the principles of how to use them on the market or the processes to be carried out for making a profiti. In addition, this initial stage when the trader becomes a professional player on the binary market is accompanied by a ton of errors and problems that are the cause of the inevitable loss of trading investments. With this in mind, we present a brief set of recommendations for beginners of binary trading, which will provide the most efficient start to binary trading and stably making a profit from your very first trading contracts. Recommendation #1 – choose professional platforms for trading. The first task of any binary trading novice is to choose a partner to work with on the market. A lot of trading performance indicators depend on your broker: your general comfort level on the market, the outcome, a list of initial trading conditions and the range of binary trading strategies, as well as the security of your trading investments. In this regard, experts recommend choosing a company that is as systemically professional as possible.

The main parameters that distinguish a professional broker are the following: Licensed by a regulator The terminal is of a high professional level with sets of tools for analysis and stable trading A good choice of assets and a high level of contract liquidity Systematic training on binary options Highly professional analytics The most minimal conditions for access to the market and trading A quick and easy mode of withdrawing profit funds. It’s very easy to give an example of a systematic and professional broker: the Binomo broker, the market leader, which has a platform where you can find the whole range of conditions and tools for professional binary trading: An FMRRC license A terminal for working on the market with professional analysis tools Contract liquidity of up to 90% and more than 80 underlying assets A professional training system Several effective formats of analytics Conditions of market access – a 10 USD account, a 1 USD minimum cost of a contract Profit withdrawals from the trader’s account within 24 hours without conditions or verifications. By making the right choice, you save yourself from investment security problems and get the most productive conditions for trading processes and a steadily growing trading result. Recommendation #2 – compulsory education. Without a clear understanding of trading processes and modes of behavior on the market, profitable binary trading is impossible to carry out. For this reason, it is absolutely necessary to take an initial training course on binary options. This process does not take a large amount of time and utilizes the simplest yet effective approaches to providing information. For example, the Binomo company offers a systematic list of innovative educational materials that, in the shortest of training periods, make it possible to learn the basic principles of trading on the binary market: A term base Video lessons Interactive materials Instructions Webinars. This list of training approaches and materials has a rapid effect on the novice trader and allows you to quickly start earning real profit. In addition to this, the Binomo broker offers novices a simulator through which to conduct their initial practical experience in trading: Recommendation #3 – only trade on strategies. Without a clear format for market analysis with high-efficiency signals for contract registration, it is impossible to gain the profitable advantage of stable trading. Trading strategies, using a variety of approaches to the analysis of price fluctuations of financial instruments with the help of automated tools or market regularities, will help you identify on the chart the most favorable conditions and positions for opening binary contracts – as a result, you’ll see growth in your account and in the volume of trading profits. The choice of strategy can be made in a special department of the Binomo broker that provides the most versatile and effective trading systems.

By using our recommendations in the initial phase of working on the market, traders can – in a way that issafe for themselves and their investments – overcome a difficult period of working with binary options and, as a result, become highly professional financial market players. Best Forex Brokers for Beginners 2018. With new forex brokers coming online every day, choosing the best broker for you often requires a lot of research and patience. To save you time and help beginner traders we have identified some of the key things that every trader must evaluate when selecting a broker and we’ve compiled a list of the very best Forex brokers in the market. How to choose a forex broker? (As a beginner trader) The forex market is the world’s largest market with a daily turnover that easily exceeds $4 trillion. However even though it is the largest market in the world, there is no central exchange for it. Consequently, forex traders have to rely on the services of a forex broker to help them execute a trade. That is why it is so important to choose the best trading partner for you. So what do you need to consider when choosing a broker? Regulatory Oversight. Before all else, the first thing every beginner trader must check when looking for a trusted and reliable broker is to see if the broker is regulated. As the forex market is an unregulated market, having a forex broker that is regulated ensures the broker will operate with transparency and fairness.

It is important to note that regulatory oversight for a forex broker is only applicable for the jurisdiction that the broker is based in. For example in the U. S, a forex broker is required to be a member of the National Futures Association (NFA) and be registered with the US Commodity Futures Trading Commission (CFTC). For forex brokers that are based in the UK, they are required to be registered with the Financial Conduct Authority (FCA). These regulatory agencies main functions are to protect the interest of investors as well to develop the rules that dictate how forex brokers should conduct their operations. Most important of all, regulatory agencies constantly monitor the conduct of the brokers under their jurisdictions to prevent any kind of abusive practices, fraud and manipulation on the part of the brokers. By doing so, these regulatory agencies help to promote competition and instill trust in the forex market. So before you decided to open a trading account with a forex broker, ensure that it is regulated by one of the regulatory agencies listed below: Australia: Australian Securities and Investment Commission (ASIC) Canada: Autorite des Marches Financiers (AMF) Cyprus: Cyprus Securities and Exchange Commission (CySEC) France: Autorite des Marches Financiers (AMF) Germany: Bundesanstalt fur Finanzdienstleistungsaufsicht (BaFIN) Switzerland: Swiss Federal Banking Commission (SFBC) United Kingdom: Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) United States: National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC) Finally many regulators offer an investor compensation scheme which protects the investors deposits up to a certain level should the broker become insolvent and become overly exposed to the markets. The Forex Platform Software. The next thing that you have to evaluate in a beginners forex broker is their trading platform or software. The trading platform is the trader’s gateway to the forex market hence you have to ensure the trading platform is reliable and easy to use. It must also have a wide range of trading tools which you can use to help in the analysis of the market. Most useful tools for beginners are clear charts, a streaming news source and even an economic calendar, giving upcoming economic events. In addition, you must also ensure that trade entries and exits can be done effortlessly. This means that the interface of the trading platform must be well designed with all the functionalities clearly labeled and strategically placed. A trading platform with a poorly designed user interface can actually impede trading which can lead to costly mistakes. For example instead of closing a position, a poorly designed trading platform can cause you to add to a position. Or it can cause you to go long on a position when you really intended to go short. At the end of the day, all these mistakes will just cause you more frustration and drain you emotionally.

Make sure that the broker offers you a reliable trading platform such as the MetaTrader 4 platform or the Sirix WebTrader. As a beginner trader is also important to know that brokers usually offer mobile versions of their platforms. This is great when you are on the go, as you never need to lose trading opportunities. Commissions & Spreads. All forex brokers make their money through the commissions or the spreads which they charge their clients. For commission based trades, the commission is usually a fixed amount per lot traded or a percentage of the total volume traded. For spread based trades, the forex broker generally markup a few pips in the difference between the Bid and Ask price. It should be noted that the spread can be fixed or floating. For example for fixed spreads, a broker may specify that the spread for the EURUSD currency pair is 2 pips. With floating spreads, the spread that is payable depends on the market volatility. Take note that the wider the spread, the more difficult it is for you to make a profit. Nevertheless, frequently traded currency pairs such as the EURUSD or USDJPY often have very tight spread as compared to less frequently traded currency pairs. All leading forex brokers offer their clients a selection of trading accounts for their clients to choose from. These accounts are typically differentiated by the benefits which they offer the account holder but they vary between the different brokers.

For example, a micro or mini account which allows a trader to trade in an amount that is less than a standard lot usually comes with a low minimum deposit requirement. These trading accounts are designed for beginner traders and have higher leverage. But they also often come with higher spreads. Sometimes, the broker might limit the number of currency pairs which a trader can trade with a micro or mini account. Trading accounts can also vary according to the type of spreads which a trader has to pay. Some trading accounts have fixed spreads whereas others have variable spreads. Or they can be commission based trading accounts as well. Usually the trading accounts that are geared for experienced traders are ECN type accounts which allow the account to access the raw spreads provided by the liquidity providers. Deposits and Withdrawals. Another factor which you must take into account when evaluating the different types of trading accounts is the deposit and withdrawal methods supported by the broker. Every forex broker in the industry has their own policies on how they handle deposits and withdrawals. Some brokers may require their clients to fund their trading accounts by direct bank deposit whereas others may be more flexible and support a variety of payment methods. Regardless of the payment methods that are supported, always choose a broker which can provide you with a convenient and cheap payment method. The forex industry a 24 hours market where trading activities never ceases.

Because of this, it is possible for a forex trader to trade the market continuously. This means you can encounter a problem which requires the assistance of the customer support team at any time. Hence, it is essential that the support services are available on a 24 hours basis throughout the entire trading week as there is nothing more frustrating than not being able to get assistance when you need it most. Check the methods which are available to contact the support team with eg. live chat, localized phone numbers, email. In addition, review the response time of the customer support representative. Another often overlooked factor when reviewing a broker’s customer support service is whether the broker has provided you with a localized or toll free telephone support number. The reason is fairly obvious as the telephone charges that you rake up when calling the support lines can easily build up to a substantial amount. Our 10 Tips for the Beginner Trader. Below we have compiled a definitive list of the absolute best brokers for beginner Forex traders. We have considered all of the below points.

To verify a broker’s regulated status, we check the website of the regulatory agency that issued the authorization for the broker to operate in a particular jurisdiction. Sometimes, a forex broker can be regulated in several jurisdictions. The more jurisdictions the broker is regulated in, the most committed the broker is towards earning the trust of potential clients. On trading platforms, the more choices of trading platforms that are provided by the broker, the better it is for you as a trader. If you are the type of trader that is constantly on the move and doesn’t like being desk bound, consider a broker that is able to support mobile trading as well. To evaluate how the trading platform is able to perform, always try out the demo account provided by the broker. This will help give you an idea of the performance of the trading platform. Some brokers offer a demo account that works only for a limited period whereas some brokers offer an unlimited demo account. Of course an unlimited demo account is better since you will still be able to use the demo account to back test your trading strategies. For trading costs, we check to see if the broker offers a rebate on the commissions that you pay. Some brokers as a way of rewarding their clients’ loyalty offer rebates on the commission paid by their clients. In other words, the more the trader trades, the more he will get back in terms of rebates.

On the issue of withdrawals, we check to see if the broker has any restrictions or specific requirements. Some brokers require a minimum amount to be withdrawn before the withdrawal request is processed. In addition, some brokers may also charge their clients a fee on each withdrawal made. On customer support, we check to see if the support services can also be accessed through social media or through internet telephony. The more methods which the broker can support, the better it is for you as a client. We check the quality of their training academy. This is important for beginner traders as you want to learn as much as you can before you take the plunge risking your money in the forex market. Some brokers in their bid to differentiate their services from other brokers also offer value added services such as free market signals. These free signals can prove useful to you as a trading aid as well as an educational aid. Finding the perfect broker is not always easy, especially when you are a beginner trader and don’t really know what to look for. In order to help you out we have collated a list of the best Forex brokers for beginners, we hope it’s useful! Learn to Trade Forex | Forex Course for Beginners. Welcome to our Forex trading course, for those looking to learn to trade Forex. If you’re completely new to the world of Forex trading and want to understand how to set up an account then this course is for you. In this step-by-step course, you’ll learn about the Forex markets, terminology and how to prepare for your first trade. If you’re more interested in learning Forex strategies then see our Forex strategies course here. What will you learn?

Step-by-step lessons for beginners that introduce you to the world of forex trading Understand the basic forex terminology including spreads, swaps and currency quotes How to set up a demo account Setting up trades using stop-losses and limit orders Creating a trading plan and using money management. What is Forex Trading? Forex trading refers to the exchange of one currency with another in at least two opposing sequences in order to profit from the change in the rate of exchange between both currencies. When we say opposing sequences, it means that you must first be in possession of a currency of trade, use it to buy a certain amount of another currency, wait for the second currency to gain in value over the first currency held, then re-exchange the 2 nd currency for the first one, getting more of the first currency in the process. In online forex trading, this process is performed using certain technology such as trading platforms, is highly automated and occurs very fast. The process is a mirror of what goes on in the offline currency exchange market. It is also done on a much larger scale, as this process includes all players in this market on a global scale. Why Learn to Trade Forex? Life is a journey and so are the many aspects of our lives including careers. Therefore, learning to trade Forex is a journey on itself that requires traders to take specific steps before finally launching their activity online. You cannot just wake and decide that today you are going to start trading online. In order to success in online trading, traders must have a plan which involves establishing an entry strategy, a trading strategy, withdrawalreinvestment strategy, huge loss impact recovery strategy and most importantly, an exit strategy. As such, this implies the importance of learning to trade because traders must learn how to derive the strategies that suit them both personally and financially.

How to Begin Trading Forex: So what does a beginner who may have some faint idea as to how currencies are exchanged with a local Bureau de Change operator, have to know about the way the online spot forex market operates? Every currency listed in the spot forex market is a floating currency. That means that its value is determined by market forces and this is what makes the value of that currency subject to change. The change in value of floating currencies is a continuous process. The spot forex market is open 24-hours a day, 5 days a week. There are currencies whose values are either fixed to a single value or within a tight range by the government. These currencies are fixed currencies and are not suitable for spot forex trading. Examples of such currencies are the Chinese Yuan (CNY). Currencies are listed, priced and traded in pairs. This because what is traded in spot forex is the change in value of one currency relative to another currency. You cannot access the market directly.

Rather, a trader will need to open an account with a broker. The broker will provide the platform, provide a fair and balanced field for all participants and generally provide market tools for traders. Fixed vs Floating Currencies. A currency is said to “float” when its value is determined by forces of demand and supply for it. Change in value of a currency is what makes forex trading, and is a continuous process which occurs minute by minute, and second by second when the market is very active. You cannot make any money if the value of a currency is static, such as is the case with fixed currencies. Some governments either fix a set value for their currencies, or restrict its movements to a tight band. Various factors cause traders to have demand for a currency, or cause them to jettison it for others. Many of these factors are listed in the forex news calendar and form the basis of news trades. The relationship between these factors and the change in value of currencies is complex and demands careful study from the beginner trader.

Indeed, a beginner in forex should ideally not trade the news until these complex relationships are understood and mastered. Forex Trading Hours. The forex market is a 24-hour market. This is because there are three major trading hubs which do most trading activity over an 8 to 10 hour period. There are periods when the trading activity in at least two hubs will overlap, producing the periods of maximum market volatility. A situation where we have one zone opening for business in a day (Tokyo and Sydney - Asian session), followed by the London session (European market) and finally the New York session, gives an almost continuous state of forex trading activity over a 24-hour period, commencing on Sunday 9pm GMT and ending on Friday 9pm GMT. Currency Pricing and Pairing. Currencies are traded in pairs and have two sets of prices. There is a bid price, and the ask price. So a typical quote for the Euro against the US Dollar will be displayed as follows: In this example, the currency pair is EURUSD, the bid price is 1.0345 and the ask price is the 1.0347. Although the exchange rate price is determined by supply and demand, most of the volume of the market are attempting to preempt the direction of interest rates. A central banks decision on interest rate ultimately decides the money supply of that country. If they decide to increase rates, that will ultimately leave less spending money in the pockets of consumers. The knock-on affect is often felt by mortgage repayments increasing and decreasing accordingly. If a market believes the central bank is likely to hike interest rates soon, that is seen as the central bank needing to cool the economy down because it is doing well.

In turn this increases the value of the currency of that country. This speculation is a huge driver of currency prices and should be considered when taking a trade. You can also make money on different countries diverging interest rates, this is called a carry trade. Institutional investors will always have a good idea about a central banks position, for a view from a former Director of the FX technical Analysis research Strategy team at Credit Suisse, see fxexplained for up to date articles and charting. Market Access. Access to the forex market is obtained through a forex trading account. Apart from a brokerage account, there are other requirements the trader must fulfill: There must be an acceptable means of depositing and withdrawing funds from the account. Various methods now exist in addition to the conventional bank accounts: credit cards, Skrill, Neteller, etc. The new trader must submit a government-issued ID and a document acting as a proof of residence such as a utility bill or bank statement to verify the identity and the residence of the trader. The trader must have the required trading capital deposited into the trading account. Such capital must constitute the required margin for any trades placed on the account. The trading platform does not work in limbo: it has to work on a hardware device such as a laptop, desktop, smartphone or tablet device. So the new trader must own any of these devices to be able to trade forex. How to Trade Binary Options as a Beginner? Trading binary options is a popular way of trading online.

This guide will help traders to find out what binary options really are, how to find a proper broker, and finally, how to place a trade, and make a withdrawal with his broker of choice. This article can be seen as an overview of all important topics for binary options beginners. Already have some knowledge of binary options? Jump to the part you are interested the most: What are Binary Options? Binary options are also known as exotic options, which can be explained as an investment type with a fixed return in a predetermined period of time. With only two possibilities to choose from, will asset price rise of fall, traders can trade binary options. Beginners like this linear way of trading that is straightforward, but please bear in mind how this is not a game, but a real type of trading where money can be lost. There is a variety of binary options from which traders can choose from; they can be short term and long term options. The majority of brokers offer a selection of trade options, such as trading on 60 Seconds, HighLow, One Touch, Pairs, Ladder Options etc. How to Trade Binary Options? As already mentioned, binary options are not difficult to understand. You as a trader don’t have to own a certain asset to trade it, as you are placing a trade based on the price prediction. Every binary trade has several elements: Asset – currencies, stocks, commodities, indices Expiry time – it can be anywhere from 30 seconds to end of month, or even longer Trade amount – the amount you are willing to invest in your prediction Direction – will the price go up or down, usually market with Call and Put Payout – percentage you will make out of your investment in case you are right.

When trading binary options, you can select an asset, expiry time, trading amount, and direction, while the payout is determined by the broker. Simply follow all available information you can get from the broker and then make a prediction. You can use different tools and charts available on the platform to execute an analysis. These features are useful not only to professionals but to binary options beginners as well. Example of Binary Options Trade. Let’s say you want to trade binary options with Apple stocks. In the asset list, select Apple. Then, select the expiry time. If you decide to place the end of day trade, you will have to wait until the end of the day to see whether or not you managed to make money. If you choose turbo options, you will wait only a minute. It is up to you. For this example, let’s say you choose 1-hour options. Now that you have selected the asset and the expiry time, you should select the direction, based on your analysis and prediction. Let’s say that you will trade Call options because you think the price of the Apple stocks will rise or fall in the following hour.

The payout for this trade is 87%, and you decide to trade $100. In the case of a successful trade, you will make $187 (100 investment + 87). If you were wrong, you will lose your investments. In case you want to test your skills, make sure to find a broker who offers a binary options demo. Demo accounts are special accounts where you can trade virtual money and test the platform in every possible way. There is no risk involved in this type of trading, but also no real profit can be made. However, you get a unique opportunity to test the platform in every way you can imagine. How to Select a Binary Broker? In order to place a binary options trade, one must have a binary broker. Binary brokers are companies that are delivering platforms for binary options trading. There are several types of binary brokers, but the most popular categorization is based on the regulation status. Regulated binary brokers have a license provided by a regulatory agency. All countries have such regulatory bodies for financial companies that operate in their markets, but not all of them are keen to providing licenses at a reasonable pace. This makes some regulatory bodies more popular among brokers than other. Regulated brokers must obey a whole set of rules and standards in order to maintain their regulated status. Usually, regulated brokers are safer than unregulated, but that doesn’t mean that unregulated brokers are scams. It is always recommended to do a research of the binary broker you are interested in. This can be done by reading reviews and examine terms and conditions that should be available on every website.

If a broker has no terms and conditions, it is better to avoid it. Best Forex Brokers for Beginners 2018. With new forex brokers coming online every day, choosing the best broker for you often requires a lot of research and patience. To save you time and help beginner traders we have identified some of the key things that every trader must evaluate when selecting a broker and we’ve compiled a list of the very best Forex brokers in the market. How to choose a forex broker? (As a beginner trader) The forex market is the world’s largest market with a daily turnover that easily exceeds $4 trillion. However even though it is the largest market in the world, there is no central exchange for it. Consequently, forex traders have to rely on the services of a forex broker to help them execute a trade. That is why it is so important to choose the best trading partner for you. So what do you need to consider when choosing a broker? Regulatory Oversight. Before all else, the first thing every beginner trader must check when looking for a trusted and reliable broker is to see if the broker is regulated. As the forex market is an unregulated market, having a forex broker that is regulated ensures the broker will operate with transparency and fairness. It is important to note that regulatory oversight for a forex broker is only applicable for the jurisdiction that the broker is based in. For example in the U. S, a forex broker is required to be a member of the National Futures Association (NFA) and be registered with the US Commodity Futures Trading Commission (CFTC). For forex brokers that are based in the UK, they are required to be registered with the Financial Conduct Authority (FCA). These regulatory agencies main functions are to protect the interest of investors as well to develop the rules that dictate how forex brokers should conduct their operations. Most important of all, regulatory agencies constantly monitor the conduct of the brokers under their jurisdictions to prevent any kind of abusive practices, fraud and manipulation on the part of the brokers.

By doing so, these regulatory agencies help to promote competition and instill trust in the forex market. So before you decided to open a trading account with a forex broker, ensure that it is regulated by one of the regulatory agencies listed below: Australia: Australian Securities and Investment Commission (ASIC) Canada: Autorite des Marches Financiers (AMF) Cyprus: Cyprus Securities and Exchange Commission (CySEC) France: Autorite des Marches Financiers (AMF) Germany: Bundesanstalt fur Finanzdienstleistungsaufsicht (BaFIN) Switzerland: Swiss Federal Banking Commission (SFBC) United Kingdom: Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) United States: National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC) Finally many regulators offer an investor compensation scheme which protects the investors deposits up to a certain level should the broker become insolvent and become overly exposed to the markets. The Forex Platform Software. The next thing that you have to evaluate in a beginners forex broker is their trading platform or software. The trading platform is the trader’s gateway to the forex market hence you have to ensure the trading platform is reliable and easy to use. It must also have a wide range of trading tools which you can use to help in the analysis of the market. Most useful tools for beginners are clear charts, a streaming news source and even an economic calendar, giving upcoming economic events. In addition, you must also ensure that trade entries and exits can be done effortlessly. This means that the interface of the trading platform must be well designed with all the functionalities clearly labeled and strategically placed. A trading platform with a poorly designed user interface can actually impede trading which can lead to costly mistakes. For example instead of closing a position, a poorly designed trading platform can cause you to add to a position. Or it can cause you to go long on a position when you really intended to go short. At the end of the day, all these mistakes will just cause you more frustration and drain you emotionally. Make sure that the broker offers you a reliable trading platform such as the MetaTrader 4 platform or the Sirix WebTrader.

As a beginner trader is also important to know that brokers usually offer mobile versions of their platforms. This is great when you are on the go, as you never need to lose trading opportunities. Commissions & Spreads. All forex brokers make their money through the commissions or the spreads which they charge their clients. For commission based trades, the commission is usually a fixed amount per lot traded or a percentage of the total volume traded. For spread based trades, the forex broker generally markup a few pips in the difference between the Bid and Ask price. It should be noted that the spread can be fixed or floating. For example for fixed spreads, a broker may specify that the spread for the EURUSD currency pair is 2 pips. With floating spreads, the spread that is payable depends on the market volatility. Take note that the wider the spread, the more difficult it is for you to make a profit. Nevertheless, frequently traded currency pairs such as the EURUSD or USDJPY often have very tight spread as compared to less frequently traded currency pairs. All leading forex brokers offer their clients a selection of trading accounts for their clients to choose from.

These accounts are typically differentiated by the benefits which they offer the account holder but they vary between the different brokers. For example, a micro or mini account which allows a trader to trade in an amount that is less than a standard lot usually comes with a low minimum deposit requirement. These trading accounts are designed for beginner traders and have higher leverage. But they also often come with higher spreads. Sometimes, the broker might limit the number of currency pairs which a trader can trade with a micro or mini account. Trading accounts can also vary according to the type of spreads which a trader has to pay. Some trading accounts have fixed spreads whereas others have variable spreads. Or they can be commission based trading accounts as well. Usually the trading accounts that are geared for experienced traders are ECN type accounts which allow the account to access the raw spreads provided by the liquidity providers. Deposits and Withdrawals.

Another factor which you must take into account when evaluating the different types of trading accounts is the deposit and withdrawal methods supported by the broker. Every forex broker in the industry has their own policies on how they handle deposits and withdrawals. Some brokers may require their clients to fund their trading accounts by direct bank deposit whereas others may be more flexible and support a variety of payment methods. Regardless of the payment methods that are supported, always choose a broker which can provide you with a convenient and cheap payment method. The forex industry a 24 hours market where trading activities never ceases. Because of this, it is possible for a forex trader to trade the market continuously. This means you can encounter a problem which requires the assistance of the customer support team at any time. Hence, it is essential that the support services are available on a 24 hours basis throughout the entire trading week as there is nothing more frustrating than not being able to get assistance when you need it most. Check the methods which are available to contact the support team with eg. live chat, localized phone numbers, email. In addition, review the response time of the customer support representative. Another often overlooked factor when reviewing a broker’s customer support service is whether the broker has provided you with a localized or toll free telephone support number. The reason is fairly obvious as the telephone charges that you rake up when calling the support lines can easily build up to a substantial amount. Our 10 Tips for the Beginner Trader. Below we have compiled a definitive list of the absolute best brokers for beginner Forex traders. We have considered all of the below points.

To verify a broker’s regulated status, we check the website of the regulatory agency that issued the authorization for the broker to operate in a particular jurisdiction. Sometimes, a forex broker can be regulated in several jurisdictions. The more jurisdictions the broker is regulated in, the most committed the broker is towards earning the trust of potential clients. On trading platforms, the more choices of trading platforms that are provided by the broker, the better it is for you as a trader. If you are the type of trader that is constantly on the move and doesn’t like being desk bound, consider a broker that is able to support mobile trading as well. To evaluate how the trading platform is able to perform, always try out the demo account provided by the broker. This will help give you an idea of the performance of the trading platform. Some brokers offer a demo account that works only for a limited period whereas some brokers offer an unlimited demo account. Of course an unlimited demo account is better since you will still be able to use the demo account to back test your trading strategies. For trading costs, we check to see if the broker offers a rebate on the commissions that you pay. Some brokers as a way of rewarding their clients’ loyalty offer rebates on the commission paid by their clients. In other words, the more the trader trades, the more he will get back in terms of rebates. On the issue of withdrawals, we check to see if the broker has any restrictions or specific requirements.

Some brokers require a minimum amount to be withdrawn before the withdrawal request is processed. In addition, some brokers may also charge their clients a fee on each withdrawal made. On customer support, we check to see if the support services can also be accessed through social media or through internet telephony. The more methods which the broker can support, the better it is for you as a client. We check the quality of their training academy. This is important for beginner traders as you want to learn as much as you can before you take the plunge risking your money in the forex market. Some brokers in their bid to differentiate their services from other brokers also offer value added services such as free market signals. These free signals can prove useful to you as a trading aid as well as an educational aid. Finding the perfect broker is not always easy, especially when you are a beginner trader and don’t really know what to look for. In order to help you out we have collated a list of the best Forex brokers for beginners, we hope it’s useful!



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