Once you have decided to become a foreign exchange trader, follow the simple steps on how to get into foreign exchange trading. You need to start by having some trading capital in your demo account — an account out of which you first trade. Generally, forex traders are low on capital since they are always trading on the margin. An ideal amount is $2000 to help cushion initial losses. However, you can start with a minimum of $300.
Your demo account is your training ground in the world of foreign exchange trader. It connects you to the live market but does not pressurize you the way the actual market would. Use the demo account to practice before you start trading with experienced traders. When you are working with your demo account, it’s a good idea to ask for guidance from a person with experience. Getting such grounding in places like the UFX Markets will help you evolve your own strategy when it comes to foreign exchange trading.
Don’t get into live transactions until you have begun to show a profit in your demo account. The ideal profitable time you should have behind you is six months with the minimum being a quarter of the financial year; anything less than that may not be a clear indication of whether you can handle the market.
Once you are sure of being able to tackle the live market, you can go live. There will be a visible difference having real currency online, but the trick is to adhere to all that you learned and the strategies you have developed during training.