is one of the most popular ways to make quick money on the internet. Many
people use Forex trading as a way to bolster their bank accounts, and, with a
little practice, virtually anyone can be an expert Forex trader. If you have a
basic understanding of the concept, then you can start Forex trading on a free
demo account in relatively short order. You can build up your skills and
tactics and ensure that you are giving yourself the best chance for
profitability. But, what about the logistics of Forex? Where do you find Forex
trading markets and how do you get started working with real money?
Forex Brokers
There are a number of different
Forex brokers who effectively provide you access to the Forex markets. Some
popular Forex brokers include:
- FXCM
- Alpari
- Oanda
- FXOpen
Of course, this is far from an
exhaustive list of Forex brokers as there are dozens throughout the internet.
Every Forex broker has different benefits and disadvantages. They all have
different account options and tools, some of which can work better with your
trading style than others. For instance, if you don’t want to put a lot of your
own capital into an account, then it’s possible to use a different, limited
account that keeps your monetary investment low. Likewise, if you want to be a
big spender, you can open up an account that allows for that.
Forex Trading Platforms
While Forex brokers get you to the
actual action of Forex trading, they generally offer a number of different
trading platforms. Trading platforms are essentially the software programs
(whether in-browser or on your own computer) that bring you the Forex market.
These trading platforms are where you see the live updates of currency rates
and where you will do all of your trading. If you lack any familiarity with
Forex trading or trading platforms, then it’s probably a good idea to open up a
free demo account with a broker so you can practice on their trading platforms.
Some brokers have their own native
trading platforms that they operate. For instance, FXCM offers three different
trading platforms, including:
- Web
- Desktop
- Mobile
This gives you a range of different
options to choose from. A web platform allows you to trade inside the browser
itself so you don’t have to download anything. A desktop platform gives you the
ability to download software to your computer’s hard drive. You also have much
more customization options and a more robust feature set because your computer
is hosting all the data rather than the broker’s website. A mobile platform
gives you the ability to trade Forex on the go. Whether you have a smartphone
or a tablet, you can download an app and start trading in the palm of your
hand.
Other brokers will provide you with
third-party trading platforms that are not operated by the brokers themselves.
Some of the most common third-party trading platforms include:
- MetaTrader 4 (MT4)
- ZuluTrade
- Active Trader
- Mirror Trader
- Ninja Trader
All of these platforms offer
different sets of tools and options to their users. For instance, MetaTrader 4
is one of the most commonly used platforms because it can be used in
conjunction with the Expert Advisor (EA) software. The EA software essentially
indicates when users should make a trade.
Zulutrade, by contrast, is an
automated trading platform that will literally make decisions and execute
trades for you. This is good for traders who don’t have the time to develop
solid trading tactics or who would rather keep their emotions out of the
picture entirely. Active trading platforms and automated trading platforms are
the two major characters that you’ll find with most brokers.
If you’re not sure what trading platform to use,
don’t worry. Most of these trading platforms are available in free demo
versions, so you can always test them out beforehand.