The foreign exchange market has been a preserve for major players, such as multi-national companies and national banking institutions. However, in the 1980s new rules came into effect that permitted small investors to gain access to the market with a leverage account. Getting Into The Lucrative World Of Forex Trading Articles a Margin Account allows you trade using more money that you currently have in your Trading account https://www.fxcm-markets.com/forex/. As an example, with a 100-1 margin account you could trade up to $100k for just $1,000.
Forex is not an easy business and there are many potential risks. It is important that a novice trader sits down to carefully study foreign exchange markets and the intricacies of the market before investing any money.
It is important to note that all trades must be carried out through an agent. Start with a personal suggestion, but if not, look for a Futures Commission Merchant who is registered under the Commodity Futures Trading Commission. This gives you some protection against fraudulent practices as well.
Opening an account is usually a straightforward process. As soon as the account is opened and your funds have been added, you can immediately begin trading. Brokers typically offer various accounts tailored for each individual client. They will also have “mini-accounts” which let you start trading from as little as $25. From one account to another, the margins on which traders are allowed to make trades will differ.
It is important to choose a broker that allows you to practice your trading skills by simulating or doing paper trades. This facility is offered by many brokers and allows for trading to be done in the same way as usual, only on paper. You can trade on a simulated account for as long as 30 days.