March 24, 2013
The very best definition of an online Forex trading platform is an FX company which provides international currency trading through their online or downloadable program. There are a wide variety of Forex platforms for United States users as well as other users around the globe. For those new to this type of trading, Forex stands for foreign exchange, and is a non-traditional investments market on which currencies are traded 24 hours a day, making it different from the average stock or bond market which are more conventional investments and are well known.
If you want an easy introduction to Forex dealing, look for a company which offers demo accounts. A demo account is a free practice account that lets you pretend to trade Forex and see how you do. Often these demonstration accounts come with as much as $50,000 in pretend money to play around with. If you find that the international currency exchange market is something you have a knack for, you can start small by opening a micro account with anywhere from $25 to $200 depending on the brokerage and platform you choose.
Like everything you would shop for and spend money on, take time to compare features of different currency trading platforms before deciding on a particular one. You may even want to join some message boards and forums about leveraged currency dealing and ask experienced traders which currency trading platform they prefer. Also, networking on these boards and joining online foreign exchange investment groups can be a great source of education from those who are more experienced such as professional traders of managed forex accounts. There are Forex groups that give advice and tell you what to buy and sell and when to do it – some of these groups are free and some require a membership fee.
No matter what Forex trading platform you end up choosing there are some basic rules of thumb you should be aware of. First of all, you need a firm technical and practical grasp on world currency, which includes past trends, future projections and current events that may move the currency up or down. Also, do not invest money you cannot afford to lose, as Forex is a risky market. Trades are often short term or medium term as opposed to holding them for long periods of time. However, if you are like many investors out there you might enjoy a risky investment strategy as opposed to a long term conservative approach.