Forex for Beginners
Forex trading provides a less risky option of trading for beginners. It requires a much smaller capital outlay than Futures, Options, Stocks and other derivatives. With most stock traders needing at least $50,000 to see a decent profit and standard Futures trading needing at least a $5,000 balance to start an account these other methods require a significant amount of outlay which is not always readily available for beginners.
Many Forex trading options can be started with $1,000 or even smaller amounts. Of course no-one wants to have losses but in the even that you make certain errors or some mistakes you stand to lose a much smaller amount of capital and have the ability to start again.
There are also fees and trading costs to consider. In stock trading a month data feed needs to be purchased for each exchange that you plan trading on. There can also be costs or fees associated with which ever trading platform you are using. This rate of commission can range from $1 for each 100 shares you purchase through to $65 per each transaction. These costs are similar with futures and options with costs ranging from $2 to $6 for each contract and each round turn. When this is added to data feed costs, it is clear that transaction expenses become very costly.
Forex has significantly lower costs of trading. Generally you will only accrue costs of the Bid/Ask spread and there may be an element commission for round-turn. Forex traders also have access to free trading platforms such as MetaTrader which can save hundreds of dollars on software costs.
Forex is readily available for members of the public to trade and it can be a fun way to learn the intricacies of trading without the financial risk associated with other derivatives. Beginner’s courses can teach the basics and provide a professional insight into the challenges and excitement of trading in the different financial markets. The courses can also nurture new talent and power your drive for success.
I am very happy that Forex is available to the public to trade. It is a lot of fun to work with brand new students who do not have much money. Many of them have a drive to succeed that pushes them to the top and therefore they are such a great group of people to work with. We are constantly looking for ways to extend a platform for new talents to rise to the top. If you are interested in learning to trade, Forex could be the perfect place for you to start.