Forex Trading - How to trade Forex in 2020?

Foreign exchange trading is often the preferred market for beginners, for many reasons. Among other advantages, forex is an easier market to trade than others. It is also where one can learn and train more easily.

Are you an absolute beginner in forex? Do you want to learn how to start? Do you want to know everything about forex?

If you wish to start trading in foreign exchange, you must first equip yourself with a trading account that will allow you to place your foreign exchange orders. Find a step-by-step tutorial below to take this first step smoothly.

Choose a Currency Broker

The term currency market, or foreign exchange market, comes from the contraction of the English language currency market terms. Forex refers to the exchange of currencies whose exchange rates fluctuate constantly. For a long time, the foreign exchange market was reserved exclusively for professionals, i.e. institutional investors, banks, companies and fund managers.

However, with the advent of the Internet in the early 1990s and retail trading platforms, the foreign exchange market opened up to a new type of investor.

They are usually people who go through online brokers to invest in currency pairs. They usually cannot place sums as large as institutional investors, which is why online currency brokers, also called currency dealers, provide individuals with trading accounts of only 50 or 100.

The first step in getting started in forex is to find a reliable and well-regulated online broker. There are several to choose from, but eToro is our recommended broker.

eToro: The Best Broker to Get Started in Forex

eToro is a foreign exchange broker regulated by CySEC, FCA and ASIC that was established in 2007. It has over 10 million customers worldwide.

The eToro online broker offers a particularly intuitive and easy-to-use forex platform for beginners. EToro’s CopyTrader feature gives beginners the ability to copy the best forex traders on the web and share tips and strategies for success with them.

Its platform offers 47 currency pairs for low margin trading with no deposit fees. eToro also accepts several deposit methods, including Paypal, Neteller and Skrill.

From 1 August 2018, there are legal limits to the leverage that brokers can offer.

At eToro, this means:

Maximum leverage of 30 for major currency pairs such as GBP/USD
Leverage of 20 for minor and exotic currency pairs
Types of accounts
The eToro online broker offers two account types: the private client account and the professional client account.

The retail customer account gives you access to the limited leverage mentioned above, but offers you protection against negative balances. That is, in the event of exceptional market conditions where your losses exceed the amount in your account, eToro will absorb the losses and set your equity to zero.

The account for professional clients, who must complete a file justifying their desire to access this account, also offers protection against negative balances, but allows them to benefit from much greater leverage than 400.