Are you looking to trade forex but haven’t got enough funds available? Or perhaps you are scared of losing your investment and do not wish to invest in forex? In either case, you can start forex trading for free. There isn’t a single penny needed to start forex trading right away. Many brokers around the world offer demo trading accounts for users to start forex trading for free. Here, a question arises that what do you really want to achieve by trading forex for free? Do you wish to gain some experience before investing your real money in the forex market? Or you are simply looking for a good forex broker and doesn’t want to open a live trading account with a scam broker.
Today, we discuss how to start forex trading for free. However, before we go into detail, we would like to give you a quick short review of the forex market so you may know what forex trading is all about, and how does it work? Forex trading refers to the trading of currencies against one and another. However, the market is not limited to trading currencies, rather it offers a wide range of tradable instruments including stocks, indices, commodities, CFDs, and cryptocurrencies. It is considered to be the most liquid market of the world. As a general estimate, forex market undergoes a trading volume of around 5.3 trillion dollars daily. Due to its high volatility levels, sometimes it becomes difficult for even professional and experienced traders to hold their grounds.
Anyhow, coming back to our topic which is how to start forex trading for free, let us mention some important factors that you must consider before you start.
Choose a Regulated Broker To Start With
The market is almost full of legit and scam brokers, you need to be very careful while selecting a broker to open an account with. The best thing you can do is to check if the broker you are considering to open an account with is regulated by some reputable regulatory body such as ASIC, CySEC, or FCA etc. Regulation makes brokers follow a certain set of rules in place by their respective regulatory authorities. At least, you can rest assured that your investment will not be manipulated by your broker.
Look If Demo Account or No Deposit Account Is Available
Often scam brokers do not allow you to start forex trading for free. The reason is quite obvious, they may not wish to get exposed. All they want is to make you start by opening a live trading account which follows real deposits. Think for a while, why a broker would not wish to let you try it for free? Is it trying to conceal something? Or it fears to lose a potential client because of their incompetent trading services. Well, you must not consider a broker to start forex trading with that doesn’t offer a demo account or no deposit account.
Read Term and Conditions Prior Accepting a No Deposit Account
As mentioned above, some brokers even offer no deposit accounts just to encourage traders to start forex trading and help them gain confidence. However, sometimes, they intend to play trick with innocent customers and trap them by offering no deposit accounts. When customers are “In” they are informed to fulfill certain trading conditions before they can actually withdraw their amounts. Therefore, you must always read terms and conditions applied prior you accept any such offer.
Communicate With Customer Support Of Your Prospected Broker
After opening a demo account with a regulated broker, try communicating with the customer support team of your broker. Legitimate brokers are expected to provide excellent customer supports to their clients. Your broker should be fast enough to respond to your queries. If you find your broker be responsive, then there is a good chance that you will be facilitated in other aspects as well.
Asses Deposit and Withdrawals Efficiency
Remember, a profit made in your account is of no use unless you are able to withdraw it. This is an unfortunate situation that most of the forex traders have to deal with. Some brokers offer such a high “payouts” that customer can’t resist investing more and more to make bigger profits. However, when it comes to withdrawing funds, the broker drives you nuts before releasing your money. So the best idea is to assess the efficiency of your prospected broker in terms of deposit and withdrawal. You can do so by opening a micro or mini account by depositing only a few bucks. This is almost free as compared to the associated benefit with opening such accounts.