Q&A for How to Trade Forex

Here we're talking about using one national currency to purchase a second national currency and trying to do so at an advantageous exchange rate so that later one can re-sell the second currency at a profit.

No. The brokers are the ones with the pricing, and execute the trades. However, you can get free demo accounts to practice and learn platforms.

Not unless you really know what you're doing. For most people, Forex trading would amount to gambling. If you can find an experienced trader to take you under his wing, you might be able to learn enough to succeed. There is big money to be made in Forex, but you could easily lose your whole stake, too.

It's common to begin with several thousand dollars, but it's possible to start with just a few hundred dollars.

During the process of opening a trading account, electronically transfer money to it from your bank account. The broker will tell you the minimum amount with which you can open an account.

Forex trading is not easy, even for experienced traders. Don't rely on it for income until you know what you're doing.

fbs.com is a forex trading site. You can register with a demo or bonus account.

For an inexperienced trader, yes, it's gambling. Even experienced traders sometimes have to rely on luck, because there are so many variables at play.

It is neither a good strategy nor a bad one. Holding a position for a particular number of days does not guarantee you a profit.

No. Your trading account will be at a brokerage, but you can link it to whatever bank account you choose.

First of all, re-read Part 2 above. Then do an online search for "Forex Brokers." One good review site is TopTenReviews.com, where you can search for "Forex Brokers." Pick someone well known and well established.

Absolutely not. If you don't want to do the work to educate yourself, hire a full-service broker to do the thinking for you.

In forex there are no guarantees. Generally speaking, no currency pair can offer a novice a guaranteed profit. Successful traders are simply good at recognizing economic and political conditions that lead to increasing or decreasing currency values.

A currency pair is any two national currencies, such as US dollars and British pounds, or Japanese yen and Mexican pesos.

Most brokers will require you or a co-applicant on the account to be at least 18.

The price of the currency pair. They are a more complex version of a line that shows highs and lows for the pair.

At a recent exchange rate, $1,000 was worth 13,420 Rand.

It is typically very quick and easy.

You will get all the online classes once you have enrolled in Forex program.

This depends on whether the broker is a scam or not. Scam brokers will never process withdrawals. On the other hand, regulated brokers will process your money no matter what profit you make. Before you deposit, do some thorough research on that broker; read a lot of reviews and make sure it is a reliable broker. There are brokers that are not licensed, but they still offer good services; to be on the safe side, always invest with regulated brokers.

Forex brokers don't charge a commission. They make their money by taking advantage of the "spread" between "ask" price and "bid" price (which they do not control).

A trading course is priced at what the market will bear. In other words, it's expensive because many people want to take the course.

If you are a beginner, it is recommended that you start with the minimum balance required by your broker.

Wait until the market has settled after the announcement.

You can start a trading account with as little as $50.00. However, this is not generally recommended. You'd be better to start with a $1000 account with a broker that offers a nano or micro account. This is a good place to get a feel for the market and trading with real money. Generally speaking, in the world of Forex, a $10,000 or $20,000 account is considered a small trading account.

Different brokerages have different minimums. Some $0, some up to thousands.

No, first you need to find a broker. Open a account, then you will need a bank account to deposit or to withdraw.

It's easy to place a market order with Trading Station. All you have to do is locate the product you want to trade, then click on the buy price if you want to go long or the sell price if you want to go short. After confirming the remaining order details, click OK. This is how it's done on FXCM.

It's a trading indicator that oscillates on a scale from 0 -100 to help us determine if the market is overbought or oversold. Above 80 is overbought and below 20 is oversold. Ideally you want to buy when the market is overbought and sell when the market is oversold.

Yes, but there is a limit and you will have to pay a fee to the bank.