How and Where to start online Forex trading?

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When you invest online you have to be aware of all your options and be ready to act fast to changes that occur.

You have to use the market to your advantage and learn how to think ahead in order to achieve your goals.

It’s a fast-paced, exciting environment, and you need to face it with a broker you can trust.

With 20 years of experience in the financial services industry, the iFOREX group understands the needs of modern traders and will help you discover market opportunities with valuable information and the most advanced trading tools.

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Start becoming a trader with iForex!

The first and most important step in becoming a trader is learning the basics.

Here are a few important financial terms that you should know before you step onto the financial field and start opening deals.

Financial Instruments

Any of the financial products available to invest in (e.g.: shares, currencies, commodities, indices).

Contract for Difference (CFD)

A contract that allows investors to speculate on the changing values of underlying assets without having to take ownership of them.

The contract exists between “buyer” and “seller”, stipulating that the seller will pay to or gain from the buyer the difference between the value of the asset at the time the contract is agreed and the value at the time it expires.

When investing in CFDs, you can buy (or go long) when forecasting a rise, and sell (or go short) when forecasting a drop in value.

Leverage

Leverage allows you to open large deals with a relatively small investment.

This is one of the main advantages of investing in CFDs as opposed to taking ownership of actual instruments.

FOR EXAMPLE: you can open a deal with $100, but that deal could be worth up to $40,000.

Bid Price

The price at which an investor or institution is willing to sell the CFD.

Ask Price

The price at which an investor or institution is willing to buy the CFD.

Spread

The difference between the Bid price and the Ask price. It will vary depending on the instrument you invest in.

Symbols

An arrangement of letters abbreviating a particular currency, which is globally recognized. The symbol is usually three letters, for example: EUR / USD (Euro / United States Dollar)

In the Forex market, one currency is always traded against another currency. For instance, the EUR/USD. In order to buy Euros, you must sell the equivalent in U.S. Dollars.

Pip

Pip stands for Percentage In Point.

For most currency pairs, it corresponds to the movement of one unit of the fourth decimal digit in a rate, but there are exceptions like the Japanese Yen pairs and even shares and other instruments, where it corresponds to the movement of one unit of the second decimal digit in a rate.

For example: EUR/USD moves from 1.1050 to 1.1051, this .0001 rise in value is one Pip.

For the list of MT4 and MT5 brokers, please visit the page below.

List of Forex Brokers