Learn Forex Trading With Our Free Trading Guides

There are several ways to learn Forex trading:

Traditional Classes:

It is possible to learn Forex trading in a formal setting by attending classroom trading courses. These are often completed on an intensive basis over a short period of time with small classes that allow for attentive tutoring.

That said, there is a huge amount of learning to become proficient at trading including understanding technical and fundamental analysis, learning how to use technical indicators, getting to grips with risk management, the list goes on.

These traditional classes will usually focus on the more generic trading methods and may not be particularly suited to your trading needs.

Prior to registering to a Forex trading class it would be worthwhile preparing a trading plan that sets out your objectives and goals. Once this has been completed, time can then be spent researching which Forex trading classes match your criteria.

» For more on trading plans visit our guide why a trading plan is important.

Online Learning:

It is also entirely possible to learn Forex trading by completing your own research. Once a well considered trading plan has been drafted research can commence on developing your chosen trading style.

If for instance a fast past trading style is attractive and time can be dedicated, a scalping strategy may be the chosen route. By researching scalping strategies and best practice it is possible to learn all you need to know to progress trading with confidence.

» Visit our scalping hub for more information on developing a scalp trading strategy. 

Before can begin Forex trading, an online broker account will need to be opened, the process itself of opening an account is very similar to opening an online bank account. A simple account opening form will need to be completed that will require some personal information and details of employment, once complete, a deposit will need to be made and you can commence.

What is important though is to make sure the chosen broker offers facilities that suit your Forex strategy. The following factors should be considered:

1. Levels of leverage available
2. Margin requirements
3. Broker spread sizes

It is recommended that a demo account is first opened. Most reputable brokers will offer a demo account pre-funded with demo funds. This is a great opportunity to familiarise yourself with the broker platform prior to opening a full account.

Trading using a demo account will also provide the perfect opportunity to learn Forex trading and how to implement your chosen strategy.

Forex trading comes with levels of risk to capital invested, but it is inexpensive to enter and exit a trade. Opening a Forex broker account is necessary to trade online and the account facility offered by the reputable brokers is free.

The only cost that will be incurred to a trader is via the broker spread. Spread is a essentially a small cost built into the buy and sell prices of a currency pair and acts as commission earned by the broker for placing a trade on behalf of a trader.

The level of spread offered varies in line with market conditions. Wether a spread is offered as tight or wide, will depend entirely on market conditions i.e. changes in volatility and fluctuations in demand and supply.

» Understanding spread is essential to your Forex trading learning. Find out more in our guide what is spread in Forex trading.

Most people will have traded the Forex markets, but probably without realising it! Consider travelling abroad and the money that is used. Let's say for example that a traveller is going on holiday from the UK to Europe. The domestic currency is Great British Pound (GBP) and this will need to be changed in Euro's (EUR), so that when the traveller arrives in Europe, they are able to pay for the taxi from the Airport to the hotel, in the currency local to the taxi driver.

Previously travellers would use Bureau de Change services at airports, nowadays most people simply withdraw money from a cash machine upon arrival at the new destination, but the theory is still the same. We will use a physical exchange as it is easier to imagine. A traveller has £100 in his pocket and needs to exchange this for Euros, takes this to the exchange and receives €120. This is the basis of the Foreign Exchange; the GBP is a higher value than the EUR and the exchange rate between the two currencies is 1.2.

Exchange rates however are changing constantly, the Forex market is open 24 hours a day and price fluctuations are occurring constantly and can be large drastic moves or slow and predictable, plus everything in between!

The likely hood is that when the same traveller returns from their holiday and looks to exchange the €50 that they didn't spend, they will not get what they were expecting. €50 being exchanged into GBP using the 1.2 exchange rate the was available initially, would return £41.67. Let's assume however that the EUR weakened over the holiday period and the exchange is now 1.25. The €50 would now mean that it will exchange for £40.00.

» Read our beginners guide to Forex trading.

This is a common question, unfortunately there is no definitive answer as there are many variations of many different strategies, each tailored to the individual.

Which trading strategy is chosen will depend entirely on the traders chosen style which is determined by a considered trading plan. A strategy will be determined by a variety of factors including time that is available to dedicate to trading, risk appetite and whether trading will be based on technical or fundamental analysis.

By means of example, if a trader is looking for high probability trading with limited time able to be dedicated, they may be more suited to trading on a longer term time scale. This will mean that a trading position will remain open for several days looking for large pip gains but with low usage of leverage.

» Read our guide on what are Forex pips.

» If you are not familiar with leverage visit our leverage hub for more information.

If a trader is looking for a fast paced form of trading and is able to dedicate several hours a day to trading, a scalping strategy may be more suitable.

» Visit our scalping hub for useful guides on creating and implementing a Forex scalping strategy.

Trading can seem like an extremely attractive activity filled with potential. There is the belief that for only a few hours trading a day, there will be plenty of potential. However, trading is like anything else that is worthwhile, it needs research, considered decision making and discipline. All common trading mistakes made by those new to trading can be avoided by spending time before the first trade is placed developing a trading plan and a defined strategy.

» See our guide avoid these 3 common trading mistakes for more information on the key pitfalls made by new traders.

Trading the Forex markets is increasing in popularity year on year with speculative traders gaining access to the marketplace. Only a few years ago, trading currency markets was available exclusively to only large financial institutions and professional traders. However, the advances in technology and the growing sophistication of online broker platforms, means that we are now in an environment where Forex trading is accessible to everybody. 

More and more online brokers are appearing in the market place and it can seem quite daunting to make the decision to choose an appropriate broker.

It is important to make sure the chosen broker offers facilities that suit your Forex strategy. The following factors should be considered:

1. Levels of leverage available
2. Margin requirements
3. Broker spread sizes
4. Range of currency pairs

All reputable online brokers will offer a demo account, these are pre-funded accounts that are a great way to learn Forex trading prior to opening a live account.