The international foreign exchange market, Forex, is a place where you can quickly earn money by investing in selected currency pairs. However, you cannot start investing unless you have an account with a brokerage firm or a brokerage office, i.e. actually with a broker who acts as an intermediary in such transactions.
For your convenience, brokers provide various trading platforms that allow you to trade on the Forex market online, and much more than this. These platforms give you access to analytical tools to help you make decisions about your short and long Forex positions and about which currency pairs to invest in at a given time.
First steps on the Forex market
First off, before you start trading online on the Forex market, you should acquire information about it and understand what it is all about. While the Forex is usually understood as a foreign exchange market only, in fact it offers more investment opportunities, especially for experienced traders.
To start with, however, it is sufficient for a trader to have basic understanding of the Forex market and currency pairs. Knowing how they are divided into majors and exotics, that it is easiest to invest in major currency pairs, and how to recognise Forex trends online, leads to the first prudent investment decisions. There is nothing worse than trading offhand, without first analysing data from global economies, without even analysing the historical valuations of currency pairs. There aren't many cases where such actions might prove to be effective and bring real profits to the trader. The inherent risk of losing some or all funds is so high that it is advisable not to take it at all, unless on a demo Forex account.
It is an account for demonstration purposes which may be your passport to real Forex trading. Its functionality is similar to that of a real account, but the funds to transact with are virtual. A demo is a test account for demonstration and practice purposes which teaches you the basics of online Forex trading without the risk of losing any money.
What's after the demo account?
Once you have gathered the first valuable experience on the Forex market with use of brokerage platforms and demo accounts, you will be able to decide whether it is a good way to invest your savings or that the international currency market is not your thing. It costs you nothing and no broker should force you to open a real account or make a margin deposit.
Should you decide that the online Forex is a market with a wide range of trading opportunities, you can move on to select a particular brokerage office or firm through which you will place orders to buy or sell foreign currencies – in other words, assume long or short Forex positions.
Selecting a trading platform
Selecting an experienced and reputable broker with a convenient trading platform for its clients is a very important initial step toward Forex trading
XTB Online Trading is one of the most popular brokers both in Poland and worldwide. It provides trading platforms such as xStation 5 and Meta Trader 4 both to corporate and private customers. Both platforms ensure a comprehensive choice of analytical tools to help you make prudent decisions. On Forex platforms of this type, you may assume Forex positions online without leaving home; you may initiate orders with Stop Loss and Take Profit limits, keep up to speed with market trends, and test automatic trading strategies.
xStation 5 is a browser-based platform which requires no installation on your computer disk. Meta Trader 4, in turn, needs to be installed, but it allows you to trade with all your XTB Online Trading brokerage accounts.
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