Open an account with SimpleFX for free

SimpleFX is an online Forex and CFD broker, which provides traders the Simplest and the Most Powerful Trading Platform.

To start trading Forex and CFDs, all you need to do is log in to SimpleFX’s web trader.

There you can trade currencies, commodities, equities, crypto-currencies and many more, all that via your laptop or mobile, while you’re at a café, on a bus or anywhere in the world.

You probably think it requires lots of money to start?

Thanks to leverage you can trade with much more than you actually have.

You’re not sure when to buy and when to sell?

SimpleFX offer features which help make a trading decission: market news, market sentiment data, a variety of tools for technical analysis and a chat where you can run your idea by fellow traders.

You’d like to stay anonymous?

Open a bitcoin account that guarantees it. On top of that all the bitcoin deposits and withdrawals will be completely free of charge.

Go to SimpleFX Official Website and start your online Forex and CFD trading today.

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Know the basics of Forex trading

Before we talk about how to get started with FX, let’s check the big premise of “how can you make money with FX”, because if you do it before you understand how to make money, you are likely to fail.

For example, let’s say you have a buy position of 100,000 USD for a “US$/Japanese Yen” currency pair at 110 USD = 110 yen.

This means that you made a transaction of “110 yen x 100,000 currencies = 11 million yen” (*you can leverage up to 500 times in the case of individual accounts with SimpleFX, so actually you only need to put in a smaller amount of money).

And if you settle this position at the timing of 1 US dollar = 112 yen, “112 yen × 100,000 currency = 11.2 million yen” will come in, so the difference of 200,000 yen from the invested 11 million yen Occurs.

This is called the exchange gain.

On the contrary, if you settle this position at the timing of 1 US dollar = 108 yen, it will be “108 yen × 100,000 currency = 10.8 million yen”, a loss of 200,000 yen will be generated.

This is called foreign exchange loss, and it occurs when the value of the yen rises (the yen strengthens) compared to when the buy position was established, and it occurs.

Before start trading FX, at least you need to understand the mechanism that makes a profit from this fluctuation in the exchange rate.

With SimpleFX, you can also learn how to trade Forex and how it works with their videos.

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What do you need to start trading Forex?

To start trading FX, you first need to open a trading account.

And when opening an account, in addition to entering personal information from the prescribed application form, it is also necessary to submit identification documents.

In addition, since FX is an online transaction, a communication environment that can be connected to the Internet, and an operating system (OS) are also essential items.

However, due to improvements in communication environment and specifications, trading applications downloaded to smartphones can now be used for full-scale trading.

With SimpleFX, all you need to do to start trading Forex and CFDs, is to access to SimpleFX’s web trader from SimpleFX Official Website.

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Choose the right Forex broker

What you need to do before you start opening an account, is to find a Forex broker that offer more favorable conditions and respond to any of your requests.

This is because each broker has different settings for swap points (interest rate difference between currencies) and spreads (equivalent to exchange fees), and there are differences in the ease of use of trading applications.

You can see the list of online Forex and CFD brokers in the page here.

In that respect, SimpleFX is always striving to present the industry’s highest level swap point, and the broker is committed to minimizing the spread cost for investors and maximizing profits with the narrowest spread in the industry.

Furthermore, SimpleFX has recorded one of the highest order execution rates in the in-house back test using a high performance system.

The execution rate is the probability that a transaction will be completed at the rate you want, and the fact is that there are differences between brokers as well.

What’s more, SimpleFX has a 24-hour support center so you can rest assured in case of emergency.

If you have any troubles or have any questions about a transaction, you can always feel free to contact SimpleFX’s support tea.

In addition, you can practice by using a demo transaction using virtual funds at SimpleFX.

Before actually trading with money, it is good to familiarize yourself with the operation of the trading platform and learn how to place an order.

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How does Forex market work?

Certain exchange rate applied when different currencies are exchanged (bought and sold).

For example, Japanese yen “yen” and American money “US dollar” are exchanged at a rate such as “1 dollar = 100 yen”, but these exchange rates fluctuate day by day.

The reason is that the transaction will be completed when the exchange ratio requested by the both parties: the person who wants to sell the Japanese yen and buy the US dollar and the person who wants to sell the US dollar and buy the Japanese yen.

In the exchange market, investors with various thoughts present their desired selling and buying prices, and the exchange rate changes day by day according to that trend.

Then, what is the phenomenon that the exchange rate changes, such as the appreciation and depreciation of the USD that are often reported in the news?

Simply put, a strong USD means that the value of the USD is high for a particular foreign currency, and a weak USD means that the value of the USD is low.

Speaking of the relationship between the Japanese yen and the US dollar, if the rate at which the transaction had been completed until a while ago was “1 dollar = 100 yen”, this would be less than 100 yen, such as “1 dollar = 90 yen”.

Until then, 100 yen was needed to obtain 1 dollar, but it is now possible to use a smaller amount (= the value of the Japanese yen against the US dollar is high).

From the dollar standpoint, it can be said that the dollar is weak.

The yen’s appreciation and the dollar’s depreciation are in a relative relationship, and are made up of supply and demand.

On the contrary, if the rate of “1 dollar = 100 yen” exceeds 100 yen such as “1 dollar = 110 yen”, the yen is depreciating.

Then you are able to get one dollar for 100 yen, but now I need more Japanese yen.

From the dollar standpoint, it can be said that the dollar is strong.

On SimpleFX’s web trader, you can trade various Forex currency pairs, not only USD/JPY.

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Why do Forex market prices change constantly?

First, let’s consider a company that imports and exports products through foreign trade.

Importers have the advantage of being able to purchase many imported products when the USD is strong because they can purchase products imported from abroad at a low price, but on the other hand, when the USD is weak, the cost of imported overseas products goes up.

On the other hand, for exporters, when the USD is strong, the price when selling overseas will be high, making it difficult for domestic products to sell overseas, but when the USD is weak, the price when selling overseas decreases.

Therefore, there is an advantage that domestic products can be sold easily overseas.

Next, how about an overseas trip that requires a local currency?

When the USD is strong, more foreign currencies can be exchanged, which is advantageous, but when the USD is weaker, only a few foreign currencies can be exchanged, which is disadvantageous.

Consider the case of foreign currency deposits.

When the USD is stronger than when it was purchased and deposited, the value of the foreign currency will decrease, which causes a loss, but when the USD depreciates, the value of the foreign currency will increase, which causes a profit.

In other words, it is profitable to make a foreign currency deposit when the USD is strong and withdraw the deposit when the USD is weaker than when depositing.

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Political and Economic Factors

As mentioned earlier, the exchange rate fluctuates depending on the speculation of the investors participating in the market.

And each investor makes his/her own expectations such as “the USD will move to a stronger trend” and “the USD will tend to weaken”.

So what’s impacting investors’ expectations? There are various possible factors, but the most influential of these is the global political economy and central bank monetary policy.

For example, if the US side commented that the yen’s depreciation is unfavorable because it would be a disadvantage in trade, more investors would speculate that some sort of pressure would exert a positive effect on the exchange rate.

In addition, if the employment statistics, which are important economic indicators in the United States, are higher than expected, it may be judged that the economy is continuing to boom, and the US dollar buying (Japanese yen selling = yen depreciation) may be activated.

Moreover, as the FED (Federal Reserve), which is the central bank of the United States, raises interest rates as Japan continues its zero interest rate policy, the difference in interest rates between Japan and the US will widen.

Then, there is a tendency to think that “Japanese yen selling/US dollar buying” will proceed in search of higher interest rates than Japan.

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Example of Forex trading

Then, what kind of influence will the strong USD and the weak USD have in the Forex market?

Let’s look at a few more examples of trading Japanese Yen and US Dollars.

If you trade Japanese yen and buy US dollars at “1 dollar = 110 yen”, the yen will depreciate, and if you settle your position (open interest) at “1 dollar = 111 yen”, you will get 1 yen per dollar, thus the exchange gains will occur.

If you had traded for 10,000 dollars, you would get a profit of 10,000 yen with “1 yen exchange gain x 10,000 dollars”.

On the other hand, if the yen strengthens and you close the position at “$1=109 yen”, you will suffer a foreign exchange loss of 1 Japanese Yen per dollar.

If you had traded for 10,000 dollars, you would lose 10,000 yen for “1 yen exchange loss x 10,000 dollars”.

If you settle when the yen becomes weaker than when you entered it, you will get a foreign exchange gain, but on the other hand, there is a risk of a foreign exchange loss when the yen is likely to rise, so you should avoid trading.

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When you should place Forex orders?

In the transaction of selling USD and buying foreign currency, it is profitable to settle when the USD becomes weaker than at the time of entry.

In the case of FX trading, it is not only that pattern that gains foreign exchange gains.

It is also possible to sell foreign currencies and buy USD.

In this pattern, if the USD appreciates more than at the time of entry, a foreign exchange gain will occur.

In other words, in FX, not only the USD value depreciation phase, but also the USD value appreciation phase will be a profitable opportunity.

Even in a competitive market where prices fluctuate in a narrow range, it is possible to accumulate profits with FX that allows flexible trading at its own discretion.

While you buy near the low price and sell near the high price, you sell it near the high price and buy it back near the low price.

With such frequent entry opportunities, many investors will have high expectations for FX market.

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Open a Forex account with SimpleFX today

Now, how did you feel when you saw the flow from opening an account to starting trading?

The work itself seems not to be particularly difficult, but it may be anxious for people with zero investment experience.

However, if you have any questions about the application procedure, you can contact SimpleFX’s support team and they will answer your questions, and the account itself can be opened for free, so it’s a good idea to take your first step with SimpleFX.

It takes some courage to try anything for the first time, but opening an account with SimpleFX does not incur any cost, so the hurdle is not so high in reality.

Moreover, you can complete the account opening application procedure from your smartphones too.

Even if you are not confident of actually starting a transaction, you can create an account anyway, at the beginning you do not invest funds, you can operate the trading application all the way and learn how to use it by experience.

SimpleFX also has a number of educational videos that explain how you can start trading on the web trader.

If you observe the movement of the exchange rate on the chart screen, you will gradually get the knack of trading.