Learn Forex Trading – Buy Forex Online With Tips, Strategies & Experience Reports

throttll
October 4, 2021
What exactly is forex trading, which terms you need to know, how you can learn forex trading, what the currency market definition is - we explain this in detail on this page.
learn-forex-trading

There are more than 160 different national currencies worldwide. The most commonly traded currencies are the US dollar, the euro and the Japanese yen.

They derive their relevance from the economic strength of their countries of origin. Currencies are also known as foreign exchange. These are traded on the so-called Forex market.

Among the many different investment instruments, forex trading is an attractive opportunity to increase saved capital from the comfort of your desk.

What exactly is forex trading, which terms you need to know, how you can learn forex trading, what the currency market definition is – we explain this in detail on this page.

Table of Contents

Forex Trading Explained: What Is Forex Trading?

The acronym Forex is made up of the English terms Foreign and Exchange. In SouthAfrica, the forex market is referred to as the foreign exchange market. In the forex market, the supply of foreign exchange and the demand for foreign exchange collide.

Exchanged (or traded or traded) takes place at the negotiated forex rate. Forex trading, therefore, describes trading in foreign currencies.

This is how forex trading works – trading with currencies

On the forex market, you can exchange domestic currency (euro) for foreign currency (e.g. US dollar) – and vice versa (currency trade). If you look at it closely, there are always 2 opposing FX trades being made. Currency trading is trading in foreign currencies according to exchange rates on the forex market.

In addition to credit institutions such as banks, the most critical participants in the forex market are the more prominent industrial companies, forex brokers and trading houses, and finally, the private forex traders.

Central banks, motivated by economic policy, also intervene in the foreign exchange market to restore the equilibrium of the foreign exchange market with the help of an intervention, if necessary. The Forex-trading hours begin on Sunday at 22:00 (CET) and end on Friday at 23:00 (CET).

Most of the currency trading or currency trading does not occur on the stock exchanges but directly between the credit institutions. This is where the interbank name market comes from. This is where the internationally established credit institutions trade in foreign currencies. There were also dedicated foreign exchange exchanges in SouthAfrica, but these were hardly involved in foreign exchange trading and have therefore been largely abolished.

First Step in Forex Trading: Choosing the Right Broker

 

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Choosing the right broker is the most important step in Forex trading. Because forex trading software is a prerequisite for online currency trading, you should make sure that the broker offers cheap fees, an exemplary user interface and, above all, a demo account. With the demo account, you can find out whether the broker suits you.

You can also test and refine your Forex strategies. In

SouthAfrica, for example, ETFinance, has established itself as a popular and leading social trading broker. As an alternative to ETFinance, Roinvestingis also very popular as a web trader. 

What are foreign currencies: Foreign currencies have a currency designation that indicates their country of origin. Foreign currencies can only be traded on the Internet and only in currency pairs, for example, as currency trading pairs forex EUR USD or forex USD YEN.

For example, the exchange rates or exchange rates for the Forex EUR USD trading pair show the value relationship between the currencies traded in a currency pair. It arises from the relationship between supply and demand.

What is the Best Forex Broker?

Forex trading is done through a forex broker on the internet. You can only get access to the FX market through a broker. There are many FX brokers. Their offers and benefits vary greatly. Which one you can use for yourself depends on the one hand on whether you meet the requirements that are susceptible to the various brokers.

On the other hand, your personal preferences are decisive – some of the big brokers also offer to have the account fully managed. The editors recommend the social trading broker ETFinance for Forex trading.

In the next section, you will find our currency market definition, everything about forex trading hours, forex or forex rates and currency calculators.

Second step to successful forex trading: learn terms and technical language

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The rate denotes the current price of the currency. Thus, in English, we speak of the exchange rate.

Purchase price

With the purchase price, the trader determines which rate he will accept to purchase a currency.

Currency pair

Currencies are always traded in pairs, e.g. EUR / USD. The first mentioned currency is the base currency, and the second mentioned is the quote currency. The price is therefore always given in the quote currency.

Spread

The process of examining current charts to predict which way the market will move next.

Commission / fees

Brokers make money through commission. It is either a fixed amount or a percentage. Other fees are also conceivable.

Market order

The market order is based on the current price set by the market. If you give such a buy or sell order, you will be able to get to the trade as quickly as possible.

Limit order

The limit order enables the trader to set a price limit for which assets can be bought or sold. This enables planning security and avoids overpriced purchase prices or over-priced sales prices.

Stop Loss Order

With the stop-loss order, the trader can minimize his losses if prices plummet. The order is activated when the asset reaches a certain price level. The trader sets this manually when placing the order. Thus, the stop-loss order is one of the basic instruments of any risk strategy.

Leverage

Leverage allows experienced speculators to move larger trading volumes than the capital employed would allow. As a result, potential profits multiply, but the risks also increase significantly. If prices are unfavourable, traders are compelled to pay back lost funds.

Margin

The margin is the “gap” between the official market price and the price paid. From the trader’s point of view, it should be as low as possible. After all, the difference is attributed to the broker as profit.

pip

Pip is a unit in forex trading. It indicates the price change of a currency pair. One pip corresponds to a price change of 0.0001.

Lot

In currency trading, a lot is understood to be 100,000 units of the base currency. Modern brokers also offer investors with lower capital mini lots with 10,000 units and mico lots with 1,000 units.

Exotic couples

Exotic pairs are not traded as often as the majors. Rather, they are weaker currencies that can be combined with EUR, USD or JPY. Due to more unstable financial systems, such exotic currency pairs are often significantly more volatile than the more stable majors.

volume

Volume denotes the number of units moved through the trade.

Go “Long”

Those who go long or “long” with their position are speculating on rising prices. The order becomes profitable when the prediction comes true, and the base currency becomes more expensive.

“Go short” / “Shorten”

To “short” a base currency means that you are betting that prices will decline. Depending on the financial product, a short position is significantly riskier than a long position.

No swap account

With a no swap account, traders are not required to pay interest on their principal. On the other hand, however, you cannot receive any interest either. This applies in particular to overnight fees for positions held for a longer time.

Standard account

The online forex broker market now offers all sorts of account types. If you have no special requirements or wishes, you can keep the standard account.

Mini account

A mini account allows forex traders to trade mini lots.

Micro account

A micro account allows Forex traders to trade micro-lots.

Forex Account Manager

A forex account manager takes care of the currency account, depending on the assigned skills. While some managers only offer advisory services, there are also active managers in individual cases.

Mirror trading

Mirror trading is the practice of copying investment strategies or trades from successful forex traders. Then, you use it as a mirror to make successful trades yourself.

Slippage

Slippage refers to the price difference resulting from the duration of a transaction. After all, every transaction must be sent and confirmed via the server. But even within milliseconds, there can be price differences. So you can pay a little more or a little less for order through slippage.

Scalping

Scalping describes a perfidious investment strategy used by influential investors. They buy stocks or exotic currency pairs to advertise them afterwards publicly. As a rule, this results in a price increase, which the investor takes advantage of to generate profits.

Third step: choose the right forex strategy

In our forex trading tips for beginners, we have laid down several important basic rules. The central keyword here is self-discipline: only those who do not indulge in impulses and stick to a clever strategy need not fear severe losses in the long term.

Also, we talked about risk management and how you can ensure that you will hold your Forex trading strategies continuously.

Now it should be a matter of choosing the right strategy for you. All strategies listed here are only suggestions. Our listing does not claim to be complete. You can find out more strategies through extensive internet research.

Or you can try social trading with online brokers like ETFinance, where you can observe the strategies of other traders and even go along with them.

In any case, we recommend that you thoroughly test a strategy you have chosen before investing your money. Then, in simulations, you can test your strategies and ideas under realistic conditions in some brokers (such as ETFinance) without any risk to take it.

A coherent Forex strategy comprises four points: defined entry signals, position sizes, risk management, and the exit from a trade. The strategies are influenced by their timeframe, i.e. the time frame that is set and monitored for the individual trades. We introduce you to four of the most popular forex trading strategies.

Scalping

With so-called ” scalping “, the positions are particularly short. As a rule, they have closed again within a few minutes of opening. When scalping, traders are satisfied with low income per trade. The constant repetition can lead to high returns in the long term.

With scalping, traders often use tick charts to observe excerpts of foreign exchange rates that last for seconds to minutes. A fast and stable internet connection is therefore essential for scalping. (This is also a considerable advantage for the other strategies.)

Learn Forex Trading: Day Trading

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In day trading, trades are opened and closed again within just one day. The day trader tries to profit from short-term fluctuations in a highly volatile forex market. In this way, the day trader can avoid the risk of serious price changes occurring during his absence.

Because they have to make very quick decisions, day traders typically use bar charts with a timeframe of just a minute or two. You can find more information about day trading, for example, in the Forex-forum of Admiral Markets.

Learn Forex Trading: Swing Trading

In swing trading, positions are opened and then held over a period of several days until they are closed again at a convenient time. The trader “swings” or “swings” from one price position to the next. It is crucial to keep a close eye on value changes to determine the right entry and exit times.

Swing traders use bar charts with a timeframe of 30 minutes or one hour. You can find a more detailed look at swing trading in this forex forum from CMC Markets or in our article.

Position trading

In position trading, traders follow long-term trends to get the maximum potential from a price movement. Charts that show the closing prices of a trading day are mostly used for position trading.

So only a few trades are carried out, but they promise larger individual profits.

Among the strategies presented here, there is a suitable one for every type of trading. So, try the strategy to see which one works best for you.

Fourth step: open the first trade

In this step, we explain how to open your first trade. Hopefully, you have already registered with a broker for this purpose. If not, here are the quick instructions again:

Using the example of ETFinance, buying a foreign currency works as follows:

In the search menu in the top bar, we are looking for our currency pair, in our example Euro / US Dollar (EURUSD). We click on the option, after which the trading window (see right) opens.

In the trading window, we now have the following options:

  • Sell ​​/ Buy: We can set whether we want to buy or sell a position in the top bar. In our case, we choose to buy.
  • Amount: Here, we can choose how much money we want to invest
  • Stop Loss: Here, we set the Stop Loss, i.e. the amount at which the position is automatically sold in the event of a loss
  • Take Profit: The opposite of Stop Loss, here we set the amount at which the position is automatically sold in the event of a profit
  • Lever: Here, we set the lever.

Once we have selected all parameters, we click on “Open trade”. The position then appears in our portfolio.

Learn Forex Trading – What Tips Are There For Beginners? What forex experiences are there?

As already written, earning money with Forex requires your intensive examination of the topic and regular reading and first trying out. The more Forex experience you already have, the better. For gaining Forex experience, simulations are recommended as they can be used free of charge by some brokers – including ETFinance.

Our tips and tricks for beginners should help you as a beginner to learn forex trading, recognize forex signals, avoid typical mistakes and prepare yourself for your first trades.

Pay attention to Forex signals

Forex trading is about recognizing and exploiting trends in good time – regardless of whether they are positive or negative. Because both falling and rising foreign exchange rates can benefit you in Forex trading if you can predict them correctly, so learn to recognize and read the forex signals.

In the second step, the trader has to decide whether he should follow a trend or not. Going against the trend can sometimes be beneficial. Investors who invested in Bitcoin in the winter of 2017/2018 know why. For this to work, the first requirement is essential:

Regularly follow the news from the major newspapers and the trends on social media. Learn which information is relevant for your forex trading strategy and keep yourself up to date.

The ups and downs also give forex traders important signals to trade on. For example, if the market approaches a low, many buyers will sense an opportunity to buy cheap. Then the course will increase again.

If, on the other hand, it approaches a high, traders already invested will think about safeguarding their profits – then the price can fall again. Therefore, recent highs and lows are a good yardstick for assessing the current price.

Learning forex trading: quality over quantity

It is good to invest a lot of time in online forex trading. Nevertheless, traders should be careful not to overuse themselves and take regular breaks. Also, too many trades tend to lead to mistakes: those who trade constantly are less focused and less cautious.

As with any investment, forex trading also means that you should avoid losses as much as possible from day one. So find a healthy dose. Unfortunately, the so-called overtrading or “overtrading” is one of the most common mistakes that forex traders make.

Your greed can also stand in your way. Who does not dream of great wealth that comes overnight without a lot of personal effort? But those who are greedy and give in to such unrealistic wishes often take risks, including unnecessary ones.

Therefore, it is advisable to create a trading plan and record how much you are willing to lose at most per day and what profits you are aiming for. When you get the profit you want, it’s time to take a break. Even if you reach your loss limit, you should stop trading.

The trading diary

By recording your trades in a journal, you can analyze your performance afterwards. You may come across patterns in your behaviour that may be helpful or harmful. In this way, you can continuously learn from your forex trading and adapt your approach.

Apply Forex Strategies

You should plan forex trading as a long-term endeavour. Continuity and discipline are the keys to investing successfully in the forex market. Accordingly, you should develop a strategy that you can use as a guide but – as described above – remain open to new insights, regular learning, error analyses, and adjustments.

Chasing after supposedly easy wins and breaking with your strategy can easily become your undoing here. Instead, you should set realistic goals and follow them consistently.

You can – and should – put your strategy to the test in a simulation before putting it into practice – for example, with ETFinance’s demo mode. Then, if your strategy is well thought out and has proven itself to others or in your tests, you can assume that it is a successful strategy. Then it will be easier for you to follow the rules of your strategy.

Which forex strategy is the best, of course, cannot be said in general terms. It depends a lot on your personality. What works for others doesn’t have to be good for you.

Suppose you are looking for a good forex strategy that suits your personality and risk tolerance. In that case, you can look at the strategies of other investors in social broking at ETFinance, for example. In this way, you may become aware of strategies that you were not yet familiar with.

Stop-Loss, Take-Profit and Forex Chart Analysis

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A useful tool for strategists is the stop-loss function. If you do not use stop-loss in trading, you risk losing your entire capital in just one single trade.

With the stop-loss function, on the other hand, you can specify that your position is automatically closed at a certain point in time if a certain loss volume is reached. This is especially important if you are unable to close your positions manually.

The counterpart to the stop-loss function is the so-called take profit function, in which you predefine that a position is automatically closed when your forex reaches a certain rate. Your winnings will then be realized automatically.

With the help of stop-loss and take-profit, you keep control of your orders. We cannot emphasize enough how important this is, especially with financial instruments with a leverage function such as CFDs: Here, your loss can exceed the amount originally invested.

It is also helpful to use forex charts. Forex charts offer you quick access to a wide range of information and present it clearly. However, in order to be able to read the forex charts and interpret them correctly, a closer examination of the chart analysis is necessary.

Using CFDs for Forex

Leverage products like CFD Forex have a decisive advantage for short-term positions that you close again on the same day you open them : the leverage increases your chances of winning considerably. However, the same applies to your risk of loss: Your loss can exceed the amount originally invested when trading with leverage.

Here, too, it is important to find a reasonable level and not let greed mislead you into taking too high a risk. It is therefore essential to be able to react quickly when day trading with CFDs. The stop-loss strategy mentioned above is also definitely recommended for CFD trading. If you follow our tips conscientiously, this can save you from great harm.

One of the benefits of CFD trading is that you can go short (sell) if you think the price will fall and go long if you think the price is going up. So you can make profits with CFDs even if the currencies you have chosen lose value.

When trading CFDs, you are only investing a small percentage of the total value of a trade. This is in fact multiplied by a loan from your broker. Thus, trading CFDs is often referred to as “trading on margin” or “margin requirement”.

In leverage trades such as CFD Forex, the trader does not have to buy a currency but acquires an abstract right to a foreign exchange position.

How can I learn forex trading – how to trade currencies?

If you want to participate in forex trading, you have to choose one of the numerous FX brokers. The editors recommend the online broker ETFinance for FX trading. ETFinance particularly stands out from the broad broking offer on the Internet thanks to its social trading.

In social trading, mechanisms of social networks are linked with stock exchange trading. As a result, the users mutually benefit from their knowledge and exchange strategies and specialist knowledge. That is why more and more private investors are using social trading brokers like ETFinance. Our box explains how you can start FX trading with ETFinance.

Learn forex trading with the right broker

Investors must exercise particular caution when choosing their broker. Fraudulent offers are not uncommon in this segment. If someone wants to give you something or offer it on outrageously good terms, you should be suspicious.

You are well-advised to turn to one of the established platforms. The online broker ETFinance, for example, is subject to European supervision to protect investors.

Forex trading in a demo account

We recommend a demo account with which you can first try out forex trading without any risk. So you can gain your own FX experience without risk. You can also test other forex trading functions in this mode.

Select currency pair

Forex trades are only done in currency pairs. So you have to decide which currency pair to invest in. As a rule, majors and minors are available to you. However, good providers convince with more than 160 currencies worldwide. The most popular currency pairs are probably EUR USD, USD JPY and EUR GBP.

Buy currencies

To buy forex, sign up with a forex broker. The overview clicks on “Markets” in the account and then selects the menu item “Foreign exchange” from the header. Now choose your currency pair. If you then want to apply leverage, you can also set this. Finally, with a click on “Open Trade,” you open your position.

CFD forex trading has its risks. Please familiarize yourself with these before using CFD Forex trading. You should only invest what you can take to lose. The information on this page does not constitute investment advice. It is for your guidance only.

How does currency trading work?

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Forex trading takes place exclusively on the Internet. Unlike stock exchange trading, which is only possible during the opening hours of the respective stock exchange, Forex trading takes place around the clock. As a result, forex traders regularly speculate on rising or falling prices of a currency pair to realize profits with the foreign exchange.

For some time now, private investors have been able to participate in foreign exchange trading through so-called forex brokers. The basis is the leverage transactions, in which the trader does not have to buy the currency but rather acquires an abstract right to a foreign exchange position. As a result, only a small fraction of the volume traded is used by the trader, resulting from the leverage determined by the broker.

Using the leverage, the broker lends the trader a multiple of his stake for trading. With a leverage of 1: 100, one hundred times the amount used is actually traded. The broker grants the trader a loan via leverage. This is a double-edged sword as leverage increases not only profits but losses as well.

When trading forex, forex traders can choose to open a long or short position. With the long position, you are betting that the price of a currency pair will rise. With the short position, on the other hand, you are betting on a falling price.

Forward foreign exchange deal

Often forex trades are carried out as futures. Forward exchange transactions are the buying and selling of foreign currencies that are only available later (= forward currencies). The fulfilment of the business, i.e. the delivery of the foreign exchange, is therefore in the future.

Banks carry out forward exchange transactions as proprietary transactions. They can be used to hedge exchange rates but also for speculation. The forward foreign exchange transaction is also known as the outright foreign exchange transaction.

Depending on the date on which a transaction is valid, a distinction is made between two things in forwarding currency transactions: the spot rate and the forward rate . The spot rate describes the foreign exchange exchange exchange rate valid at the time of consideration, while the forward rate describes the exchange rate that lies in the (considered) future.

The difference between these two rates is what is known as the swap rate. If the forward rate is higher than the spot rate, the swap rate is referred to as a report. On the other hand, if the forward rate is lower than the spot rate, the swap rate is referred to as the deport.

In the currency futures markets, expectations about the appreciation or depreciation of currencies are less important than the differences in interest rates between the investments in the various countries. Higher interest rates have a report, while national currencies with lower interest rates have a Deport.

Forex trading tax

The withholding tax applies to trading transactions. However, most online brokers do not automatically deduct any taxes if the broker’s headquarters are not in SouthAfrica. Accordingly, there is no automatic deduction of capital gains tax. It is the customer’s responsibility to determine the tax certificate as part of the tax return and pay it in one lump sum.

If you need documents for the tax return, you can create them yourself at any time, for any period, directly via the trading software. You then add this to your tax return. It is important to note that brokers do not send annual certificates themselves. The broker must create these.

Forex outright futures

The forward exchange deal is primarily used to hedge against exchange rate risks in the case of obligations arising from capital movements (or the movement of goods and services) abroad if the payment obligations are made in a foreign currency.

When concluding the contract, the business parties agree on a binding forward exchange rate for a foreign exchange purchase or sale, which will only be carried out after the agreed term on the so-called fulfilment date (also known as the date or due date).

Since the forward exchange rate already determines the currency exchange conditions at the time of the transaction, the underlying trade or capital transactions can be assessed independently of the foreign currency risk. This is referred to as the foreign exchange outright forward transaction.

What are foreign currencies?

What are foreign currencies? The term foreign exchange comes from economics. Foreign currency is understood to mean foreign means of payment denominated in a foreign currency. The official currency in SouthAfrica and other member states of Africa is, for example, the SouthAfricanRand. In the USA, it is the US dollar, and in Japan, the Japanese yen.

Especially in banking, foreign exchange denotes foreign currency receivables payable abroad. Foreign currencies refer to all currencies that are used outside of one’s own currency area. In individual cases, however, a distinction is made between different cases in forex trading.

For example, in foreign exchange trading, a distinction is made between foreign exchange, i.e. the accounting size, and the types, i.e. the specific presence of a currency in coins and bills. Unlike sorts, foreign currencies also refer to means of payment in foreign currencies, such as checks or bills of exchange.

Forex trading worldwide

As a private person, you may already have had contact with foreign exchange trading if you exchanged your euros for your host coulets currency in a non-European country. So, for example, if there is a transfer from South Africa to the USA, in which the invoice amount has to be converted from euros to US dollars, it is based on the forex rate or exchange rate.

If a vacationer changes euro bills for US dollars at the bank counter, the conversion takes place based on the exchange rate. Foreign exchange trading indicates a payment obligation in a foreign currency. Foreign exchange ensures that receivables can be settled in a foreign currency at short notice.

Earning money with Forex is not child’s play : Forex trading or currency trading with currency rates is considered the supreme discipline on the international financial market. With no other financial instrument do traders turn over larger sums. The daily trading volume in Forex trading regularly amounts to over five trillion US dollars. Even stock trading does not come close to these numbers.

What’s the Best Forex Trading App?

After numerous criteria, we decided on the forex trading app ETFinance as the test winner . ETFinance  is available for iOS and Android. The app is clear, available in many languages , ​​and there is a tutorial to introduce new users in the best possible way.

The company can look back on twelve years of corporate history. ETFinance is also the  initiator of  social trading . This allows users to get in touch with one another.

New users can learn from experienced users and thus have the opportunity to participate in their success.

ETFinance offers more than 1000 different investment opportunities including CFD stocks, forex, commodities, indices, ETFs and copy portfolios . The notification within the app takes place in real time. The minimum amount for entry is € 200.

ETFinance also offers the option of  creating a  free trial account to familiarize yourself with the functions. So the user can experiment with the numbers without having to spend real money. In principle, ETFinance has a very good trading app.

Forex Trading Fees: What Is The Cheapest Forex Broker?

To make the purchase fees comparable, let’s take the following example:

  • We want to buy a crypto value worth € 1,000 with PayPal
  • We would like to hold the cryptocurrency for a month and then pay it back to our account in euros
  • For the sake of simplicity, we assume that the course does not change in the 30 days

With these assumptions, we now go through the fees of the largest providers:

providersETFinancePlus500
Deposit with Paypalfreefor free
Purchase feesfree3.08%
Holding feesfree0.05%
Sales chargesspreads3.08%
Total feesReasonable€ 92.32

Basic requirements for buying foreign currency

Anyone who has a computer and an Internet connection has already met the most important requirements for participating in forex trading. In order to earn money, you will also have to do one thing above all else: Learn. You should read up on Forex trading in detail and experiment with this financial instrument.

Many helpful tutorials are available free of charge on the Internet. Those who speak and understand good English have an advantage here. You can experiment, for example, in the demo mode of the Forex broker ETFinance.

Getting into forex trading without thorough preparation would be naive. Trading involves risks that you should definitely take seriously. Anyone who joins without prior knowledge will most likely lose their investment.

Also, trading can be a huge waste of time. For example, anyone who practices as a day trader will have to invest several hours a day in Forex trading while executing dozens, if not hundreds, of trades.

Because the Forex market is an incredibly volatile market, with changes happening in seconds, Forex traders are usually very active, opening and closing trades in minutes. But, of course, you are free to try forex trading occasionally instead. When and how often you participate in forex trading, you alone decide.

Minimum age for Forex trading

If you want to take part in online forex trading, you must be at least 18 years old. Some providers even require a minimum age of 21 years. The conditions are subject to the country’s laws in which the Forex broker has its place of business.

Earning money with forex is not a piece of cake; if you are not yet of legal age but interested in Forex trading, you should use your time to familiarize yourself with the theories.

Minimum bet when trading forex

Most forex brokers require minimum capital. As an investor, you should bring at least 1,000 euros. If you can spare 5,000 euros, all broker doors are wide open to you. But you should only use what you can really cope with losing – because currency trading is associated with various risks that you should not underestimate.

There are brokers where you can even get into online currency trading for as little as 50 or 100 euros for beginners. So it is well to collect the first concrete Forex experience.

Learn Forex Trading: What Software Do You Need?

There is no software that you have to use when trading. With many forex brokers, you makecrucial your trades directly in your internet browser, i.e. via Firefox, Chrome, etc. Other FX brokers provide you with specific software or app. Most brokers support the popular MetaTrader tool.

If you use the internet through a less common browser, you have to assume that your FX broker does not support it. To still be able to use a forex broker, you will have to use an app in this case – or install one of the usual browsers on your computer.

Forex market definition

The foreign exchange market is a market in which different currencies are exchanged for one another. From a domestic perspective, foreign currencies are foreign currencies. The exchange rate is formed on the foreign exchange market. The exchange rate is the exchange rate as the equivalent of a foreign currency in relation to the domestic one.

Trading objects on the foreign exchange market are the assets in the common freely tradable currencies. Therefore, the convertibility of the currencies traded is a necessary prerequisite for the functionality of foreign exchange markets.

Forex trading hours

Unlike stocks, which can only be bought and traded during the opening hours of the stock exchanges (i.e. within the trading day), there is also a time limit for Forex trading.

This is because Forex trading does not take place on the stock exchanges but mustbroking platforms on the Internet. So you can participate around the clock and are not limited by any forex trading hours. But what about the forex trading hours at Christmas and on public holidays?

There are always some peculiarities when it comes to holidays. Sometimes newcomers to forex trading ask themselves whether there is even an opportunity to trade on Pentecost, Christmas or other holidays actively. Even if there are only a few internationally valid holidays, the national holidays considerably influence trading themselves.

Usually, forex trading takes place through a broker. This broker usually reliably informs its customers if only limited trading takes place on a public holiday. There may be breaks in trading on public holidays.

On larger public holidays, which affect several trading venues, liquidity can then be restricted. This lower liquidity is then the reason why the trading opportunities are not fully available.

Major holidays in Forex trading include New Year, December 24th, December 31st, Easter, July 4th in the US, July 14th in France and the Moon Festival in Asia. With these significant data, one can expect less liquidity and correspondingly less intensive trading.

Most trading platforms close on regional holidays or automatically reduce the trading volume.

Forex trading does not come to a complete standstill even on public holidays. However, currency pairs that refer to Asian currencies may not be available on the Asian Mid-Autumn Festival. The market trading times do not normally change for the other trading venues, even if the liquidity of the various trading options is sometimes limited.

Exchange rates

The exchange rates arise on the one hand depending on the supply and demand of the foreign exchange. On the other hand, official exchange rates are set daily. The European Central Bank determines these. At around 1 p.m., a total of 17 banks report the mean values ​​of the currencies traded on that day to the Bundesbank.

In a subsequent telephone conference between the European Central Bank and the individual central banks, the exact exchange rates for the euro are determined. As a rule, the exchange rates are published around 2 p.m.

Currency calculator

In the foreign exchange calculator from boerse-online.de, the calculation of euros and US dollars can be carried out on the basis of the current exchange rate and historical rates. Simply select the course date you want. Today’s date is always present on the computer. In addition to the current rate, the result box also shows the closing rate of a selected currency from the previous day as well as the high and low of the day.

You can use the foreign exchange calculator from boerse-online.de to call up the exchange rates for over 160 currencies worldwide. To calculate, you simply enter the desired amount in the respective source or target currency of the foreign exchange calculator and, if necessary, determine a point in time in the past.

Final Forex Broker Comparison: Where Should I Trade Forex?

 

Select broker

valuation

5.04.94.7

Mobile app rating

9/109/109/10

account

Min. Trade

25 €N / A0 €

lever

1:301: 2001:30

Margin trading

number of stocks

2,000+24251000+

Number of ETFs

150250+105

fees

Cost per trade

€ 0€ 0€ 0

costs per month

€ 0€ 0€ 0

ETFs

0 €0.01-2%0.01% – 2%

Funds

from 0.09%0.01-2%0.01% – 2%

CFDs

from 0.09%0.01-2%0.01% – 2%

Savings plans

N / A

Crypto

from 0.45%N / A0.01% – 2%

Bonds

from 0.09%N / A0.01% – 2%

Trading fees

SpreadsSpreadsSpreads

Withdrawal Fees

5 €0 €0 €

Inactivity charges

10 €N / A10 €

Deposit fees

0 €0 €0 €

Overnight CFD position

var.N / A0.5%

Payment options

Credit card

Giropay

Neteller

Paypal

Sepa transfer

Skrill

Instant bank transfer

Conclusion – learn forex trading online

Online forex trading promises investors high returns but demands a lot from them. Therefore, only those ready to prepare for online forex trading properly and to deal extensively with forex trading strategies should venture into the forex market.

With our advice and tips, you are well prepared to have your first own Forex experience and can finally start learning Forex trading.

4.9
4.9/5

Our recommendation: Trading at Investby

Our recommendation: Trading at Investby

  • The broker provides an Islamic Account
  • It provides a dedicated account manager
  • Receive customised investment news
  • Trade with a variety of assets
  • There’s no deposit limit
ABinvesting Review
4.5
4.5/5

Our recommendation: Trading at ABInvesting

  • Acknowledge the financial markets through education material 
  • Free VPS is available 
  • Get a swap discount of 50 per cent 
  • Islamic Account is available to traders 
  • Select account types of your interest
4.9
4.9/5

Our recommendation: Trading at PrimeFin

  • Fifth decimal available 
  • Spreads begin from 0.03 pips
  • Commission is zero  
  • Full 10-hour support  
  • News alerts and VPS for traders

FAQs

Like any investment, there is always a risk of losses in Forex trading. You must create a suitable forex trading strategy that corresponds to your trading personality. Those who invest wisely can achieve high returns from Forex trading.

We present some brokers where Forex trading is easy to learn, even for beginners in our ranking. The choice of platform depends not only on usability but also on other factors, such as fees, trading tools or licensing

Undoubtedly, it takes some practice actually to make money from Forex trading all the time. Therefore, in addition to choosing the right currency pair, constant training is an essentialactor in becoming a successful forex trader.

The most important dates have been summarized in the article. However, if you want to learn more, you can fall back on the various academies of the online brokers or visit the relevant forums that deal with the topic.

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