What is forex trading online? - Can I Do It?

The Forex Exchange Market

Forex trading online is sometimes referred to as the forex exchange market , this is the biggest financial market in the world where over 5 trillion dollars is traded daily. Do not let the amount of trading volume that is in this market fool you almost 95 percent of the people that trade in this market lose money.

What does this mean?, it means only five percent of traders make money in this market. Yes you read that right only five percent of the people who trade in this market make money and almost everyone else loses money. I know this is contrary to all those youtube videos that tell you that forex trading is a make money quick scheme .

How do i trade forex online?

Forex is traded online using what we call a forex broker, these brokers are middle man that will open your trades on your behalf in the interbank market:

What is the Interbank Market?

The interbank market is the global network utilized by financial institutions to trade currencies between themselves. While some interbank trading is done by banks on behalf of large customers, most interbank trading is proprietary, meaning that it takes place on behalf of the banks' own accounts. Banks use the interbank market to manage exchange rate and interest rate risk.

Forex Broker

Forex brokers are firms that provide traders with access to a platform that allows them to buy and sell foreign currencies. Transactions in this market are always between a pair of two different currencies, so forex traders either buy or sell the particular pair they want to trade.

What Do I need To Trade Forex?

If you have an interest in trading forex you will only need a laptop and a trading platform downloaded onto your laptop , Some people use their cellphones to trade but i wouldn't advise this if you are a beginner.

Cellphones are mainly used to open trades and rarely for analysing the market. The trading platform which is mostly used by traders is metatrader 4

What is Metatrader4?

MetaTrader 4, also known as MT4, is an electronic trading platform widely used by online retail foreign exchange speculative traders. It was developed by MetaQuotes Software and released in 2005. The software is licensed to foreign exchange brokers who provide the software to their clients.

Trading forex online is not for everyone but the market has made quite a number of millionaires, like every business you need discipline and have to be willing to work hard.

Remember in this life nothing comes easy so you must be willing to put some hours of work to be successful in this business. If you have any questions about forex trading feel free to leave a comment in the comment box.

Innoe,