TRADING FOREX ONLINE
RECCOMMENDED BROKERS
BEAT THE MARKET MAKER
TIPS TO A SUCCESSFUL TRADING
Fill the form to get a free trading guide straight into your inbox
TRADING MATERIALS
- The Intelligent Investor: The Classic Best Seller on Value Investing,
- A Beginner's Guide to the Stock Market
- How to Day Trade for a Living
- Technical Analysis Explained by Martin Pring
- Encyclopedia of Chart Patterns by Thomas Bulkowski
- Trading: Technical Analysis Masterclass: Master the financial markets
Reading books help you clear and sharpen your mind. Although most of the information nowadays is online, it is good to have a paper on your hands when thinking of an investing strategy or a new angle. The most famous traders weren’t Googling, they have studied at least the theory with books. Do yourself a favor and pick any book, not even from this list and start reading it, make marks on it, send us a message to discuss some lines from it. It doesn’t matter as long as you keep reading new books, this will create a good habit. Some useful books for trading that we do not have in the above list are also psychology books, keep them for later, they are useful but can also be super boring.
FEATURED B00K
- Finance Magnates, London Summit 2022 | The best in class events for trading
- ICE London | Focusing on betting, but can have a hybrid audience
- Money Show and Traders Expo | We haven't tested, but looks good
- Sibos - The biggest event for banks, mainly for institutional players
- FX Markets APAC Week | Nice expo for Asia markets
- iGB Affiliate | Mainly for partnerships, but you can find also brokers
FEATURED EXPO
- Elliot Wave Trading Course
- Trading With Trendlines
- BTMM Trading Course
- ICT Trading Course
- Wyckoff Trading Course
FEATURED COURSE
WHY CHOOSE A BROKER WITH HELP FROM US
We are traders ourselves
Having someone reviewing a broker that has never traded with his own money would make sense? We have walked what we talk about.
Support Us
The best way to support our team is to open an account with our affiliate links. This way we will keep the site clean from Google Ads.
it's quality, not quantity
We are trying to keep our reviews’ word count to a number that someone can digest. We are not an online encyclopedia!
Selection of Brokers
Are there better brokers than the ones we recommend?Yes, since there are thousands of them. We remove the noise for you, so you can focus on trading.
We are here to help
Believe it or not, this website is curated by real traders. Feel free to reach out in case you believe we can provide a useful angle to your question.
We love communitties
We are a community of traders, exchanging ideas and sometimes we try to sync, you remember the GameStop case right?
6+1 reasons to trade with Zero Risk
- Global Regulated Broker
- Great tools and training
- Comprehensive support
- Advanced trading platforms
- Uncompromising security
- Educational video tutorials
- Zero risk with Demo Trading
FREQUENTLY ASK QUESTIONS
What is Forex trading in plain words?
Forex trading is the trading of foreign currencies. Currencies like the U.S. dollar (USD), Euro (EUR), Canadian dollar (CAD), British pound (GBP), Australian dollar (AUD), New Zealand dollar (NZD), Swiss franc and many others freely float in value against each other in financial instruments known as currency pairs. For example, a commonly traded currency pair is EUR/USD, which pits the Euro against the U.S. dollar. When the Euro goes up in value against the U.S. dollar, EUR/USD will go up. When the U.S. dollar rises in value compared to the Euro, the EUR/USD will go down.
Is a pip the base metric in Forex trading? What is a pip?
A pip is the smallest indivisible unit in the Forex market. You will often hear or read about a 20-pip move or a 50-pip move. Most Forex pairs are expressed with four digits after the decimal point. But those with Japanese Yen (JPY) as the second currency in the pair are expressed with only two digits after the decimal point. So, for example, a pip of USD/JPY is .01, while for EUR/USD, the pip is .0001
Who is Forex trading for?
Forex trading is for anyone who wants to make investments in the currency market. The features that distinguish the Forex market from the stock or commodities markets include:
24/5 market–doesn’t close except on the weekends easier access to leverage easier access to shorting since each pair is set up in opposition to another currency. Forex is well-suited for people who have limited time to trade, but can also be traded short-term using strategies like scalping or high-frequency trading. Scalping and high-frequency trading are very short-term strategies and not for someone who wants a passive income stream. The closest Forex comes to a passive activity is trading on a long-term timeframe, which in Forex can be a few months or years. You could earn a passive income on the interest difference between the two currencies. This is known as a carry trade.
How does Forex trading work?
To make investments in the Forex market, you must first set up an account with a Forex broker. A Forex broker provides you with access to the trading platform, usually with mobile or desktop options. Using the software provided, you can view charts, make trades, and view economic news events and financial reports. The charts allow you to see technical indicators, which are statistical signals to buy, sell, or hold Forex pairs.
How does leverage work in Forex trading?
Leverage is usually specified in ratios like 10:1 or 20:1. This means that for every one unit of currency you have in your account, you get 10 (10:1) or 20 (20:1) units of trading power. The money in your account must maintain margin requirements, or you will face margin calls. For example, if your account holds 1,000 USD and your leverage is 10:1, you have USD 10,000 in trading power. If you make a trade worth $9,500 and the value of the Forex pair drops below USD 9,000, it means you are over $1,000 in the hole. This means that you don’t have sufficient funds to pay your losses. You could receive a margin call at that point. This means that your trades will be immediately closed because you do not have enough margin to secure the losses.
What are alternatives there for Forex trading?
Alternatives to Forex trading include stock trading, cryptocurrency trading, and commodities trading. Stock trading is much stricter in its regulations. It is much more challenging to get approved to use leverage and to get approval to sell stocks short. The stock market is also closed overnight and on weekends.
The commodities market is open for trading even less often. Commodities include goods like crude oil, natural gas, corn, and metals. Signing up for an account with a commodities broker is similar to signing up to trade Forex. You will need to provide various information to the broker, and if they feel you are an acceptable risk, they will give you an account.
Cryptocurrency trading is in its infancy. The utility of cryptocurrency is low and price changes are mostly driven by hype and market sentiment as opposed to fundamental or technical factors. Some in the financial community does not consider them investments.
Who is the founder of Forex trading?
The modern Forex market began to take shape in 1971 when the Bretton Woods system of fixed exchange rates was eliminated. This is generally credited to Richard Nixon. Various other agreements prevailed until 1973 when the developed world began to allow their currencies to float against each other freely. Trading in Forex was limited to large financial institutions, and the rise of the Internet in the 1990s and Forex trades began offering the ability to trade online.
Where does Forex trading take place?
The Forex market is a global market whose orders route around the world. So if you are located on the east coast of America, your orders might go through New York during the day, but after closing time, your order would be routed through somewhere else, perhaps Tokyo or London. And since Forex is a global market with such flexibility, you can also trade Forex online from anywhere in the world.
Why invest in Forex trading?
The Forex market’s easy access to leverage and being able to easily enter a trade on either side of the market makes Forex trading very appealing to investors. The market is open 24 hours a day, 5 days a week, which means you can trade on a schedule that works for you. There are great opportunities in the Forex market. Even when stocks are flat, Forex is a volatile market that offers opportunities for profitable trading.
What are the 5 strictest regulators in Forex trading and how do they protect me?
Alternatives to Forex trading include stock trading, The five strictest Forex regulators in the world are the U.S. CFTC (Commodities and Futures Trade Commission), the U.S. NFA (National Futures Association), the U.K. FCA (Financial Conduct Authority), the FINMA (Swiss Financial Market Supervisory Authority) and the ASIC (Australian Securities and Investment Commission). These organizations set up regulations to protect the clients who trade with brokers who fall under their respective authorities. These regulations include limiting the leverage available to Forex traders, maintaining the separation of investor funds from those of the brokerage itself and ensuring that the broker maintains a certain minimum of funds on hand at all times.
When did Forex trading historically start, and by whom?
Early primitive forms of currency trading go back to the ancient Greeks, Egyptians, and Romans. It was the Romans who centralized the minting of currency and imposed a government monopoly on the trading of currency.
The first Forex market was founded in Amsterdam in the 17th century. Amsterdam was a crossroads of many different nationalities and was an enclave of not only social, but also economic freedom.
London was an epicenter of the Forex market around the time of World War I. It was also around this time that governments began to print more money than they had gold to back it, bringing the gold standard into question. During World War II, the Bretton Woods system was introduced, but it also failed. By 1973, most of the world’s currencies were allowed to float freely against each other, giving us the Forex market we know today.
How can you get started with Forex trading? What are the general steps to open a brokerage account?
The first step is to find a broker. Most brokers these days have demo accounts, so you can get acquainted with their trading platform. Using a demo account is a great way to learn without risking any money. Once you have signed up for a demo account and learned the ropes of Forex, the next step is to sign up for a real account. You will typically need to provide information about your identity, your e-mail address and a funding source for your account.
The best way to find a broker is through word of mouth from someone you trust. If you don’t know anyone who trades the Forex market, you could also have a look at reviews for Forex brokers. Do take reviews with a grain of salt. Some of them are fake and others are just overly cynical.
CFDs are a simpler alternative to Forex pairs that some brokers offer. These contacts for difference are simply contracts to pay and get the difference arising from a transaction
Why is Forex trading a zero-sum game?
Forex is indeed a zero-sum game in the sense that for the vast majority of trades on the Forex market, your gains are the losses of other traders and your losses are the gains of other traders. Every trade on the Forex market has a counterparty on the other side of the trade. Each side of a trade is the counterparty to the other side. Therefore, there is always a winner and a loser. But the broker always gets his fee and that aspect of the market is not a zero-sum game.
How much money do I need to invest in Forex trading to start? What is the minimum and the optimum?
It is possible to open an account for as little as 10 units of currency. While brokers do allow this, it is not recommended. It is difficult to practice good trading habits like proper money and trade management with this small amount. You would need significant leverage even to open one trade. And this one investment would consume your entire $10 (or EUR or whatever). To provide more flexibility to practice good trading habits, it is recommended to deposit at least 5,000 units of currency
Who are the 10 most successful investors and traders in Forex trading of all time?
The ten most successful Forex traders and investors of all time are generally considered to be George Soros, Andrew Krieger, Stanley Druckenmiller, Bruce Kovner, Paul Tudor Jones, Bill Lipschutz, Urs Schwarzenbach, Michael Marcus, Joe Lewis, and Michael Steinhardt. Soros is famous for shorting 10 billion GBP in 1992, forcing the U.K. to withdraw from the European Exchange Rate Mechanism and profiting USD 1 billion. Andrew Krieger joined Banker’s Trust in 1986 and was immediately rewarded with an increased capital limit of USD 700 million. One Black Monday (October 19, 1987), he shorted the New Zealand dollar at a 400:1 leverage, taking a short position larger than the entire New Zealand money supply. His trade made his company USD 300 million in profit, of which he received $3 million. Druckenmiller made a 60% return shorting the German mark in 1980. Kovner once purchased $3,000 worth of soybeans on his MasterCard and ended up earning $23,000 on the deal, saying the ordeal taught him the importance of risk management. He later founded Caxton Corporation, which generated $14 billion at its zenith.
Are unregulated Forex trading brokers any good?
Trading with Forex brokers who are unregulated opens you up to a higher chance of fraud or monetary loss. Forex regulators are constantly monitoring the exchanges they oversee for fraudulent and high-risk practices. These regulators also can compensate investors in case of monetary loss if the broker goes out of business. Furthermore, being regulated shows that the broker is serious about your financial and personal information and willing to abide by the laws designed for regulated to keep you safe. So, even if an unregulated broker has sterling reviews, there are still very good reasons to avoid it or at least accept that you take some risk. A common case is a well known broker to have also an unregulated entity to offer to clients higher leverages, deposit bonus and other promotional perks that are not allowed in various jurisdictions
Is Forex trading a scam?
Forex trading itself is not a scam. It is a global market that countless billions are affected by each day. However, everything in this world that involves money or has the potential for monetary gain also attracts fraudsters and Forex trading is no exception. Always investigate Forex brokers that you are considering doing business with to ensure that they are legitimate. Forex and Forex brokers are sometimes viewed as scams because many people in the general public are not familiar with Forex and the bad news is all the news they hear about it.
Sometimes you will read reviews that say a particular broker is a scam artist. There may be truth to this, but there are also angry traders who blame all their failures on someone else. Forex trading is difficult and failure is not uncommon. So consider this when reading reviews like this instead of blindly accepting them as an unbiased opinion.
Is Forex trading a good idea or is it a pyramid scheme?
Forex trading is NOT a pyramid scheme. This is not to say that there are not scams related to Forex. There undoubtedly are just as there are with any enterprise that makes money. There are many reliable Forex brokers and many millions of Forex traders and investors. Some people succeed at Forex and obtain a good income from Forex trading. Forex is the largest and most liquid market in the world and it is definitely not a pyramid scheme.
Can I make a living with Forex trading?
Yes, it is possible to make a living with Forex trading. However, most who try to do this do not succeed. Forex trading is not easy and it is not something that you learn how to do effectively overnight. Considerable practice is required to master it and a considerable bankroll is needed to make enough profit to enjoy a comfortable life. What constitutes a comfortable life in your particular region may vary, however. If you live in a region with a low cost of living or are willing to move to one, it will reduce the income you will need to earn.Forex trading is not generally used to generate passive income. Forex traders are generally active, especially those without a large bankroll to support the type of large carry trades that could provide a passive income.
Do I need a bank account to start Forex trading?
A bank account is required to fund your Forex brokerage account. You can fund your account with a credit card deposit. You will still need to verify your identity and fulfill all the KYC (Know-Your-Customer) regulations that the broker may require for investors. And if the broker does turn out to be a scam, you will be glad that they only have access to your credit information and not the information for your checking account. Also some brokers allow wallets like skrill, Payoneer, PayPal, Stripe and the new Revolut, Monese and Transferwise to fund your account up to limited ammount
Do central banks utilize Forex trading?
Central banks do participate in the Forex market by intervening in it. The goal of central banks, however, is not to make a profit. The goal is to influence the market to satisfy their monetary policies. These goals typically include maintaining stable prices and stimulating or curtailing economic growth. Central banks also manipulate the market by setting the interest rate, purchasing government securities and other means. The eventual result of all this manipulation is to increase or lower the value of the country’s currency in relation to another currency.
What is the risk with Forex trading? Can I hedge or control it?
The risk in Forex trading is significant. The monetary policies of central banks can often change depending upon the economic climate. Ordinarily volatile markets can expand very rapidly, moving in a short amount of time. 100-pip moves over a few hours are not at all uncommon. You can hedge your investments by opening a contrary order to an existing order. However, this type of hedge is not allowed by U.S. regulators and U.S.-based dealers will treat this second order as an order to close the existing transaction. Proper money and trade management can help you control the risk in Forex. Leverage is a powerful tool, but when used unwisely, it can increase risk exponentially.
Is Forex trading legal in all countries as of 2020?
Forex trading is more or less legal in any country that has currency. There are, however, many countries that brokers choose for legal reasons not to allow accounts from. The most common of these countries include: Belarus, China, India, Iran, Saudi Arabia, Canada, Pakistan, South Korea, Japan, Turkey, and the U.S. In the case of the U.S. and Canada, Forex is in no way illegal, but they do have very strong regulations on what is allowed. In the case of Japan, they have rules forbidding Forex traders from using brokers who are not registered in Japan. China, India, South Korea, and Turkey have similar rules.