Thanks to Forex brokers, it is now also for private investors possible to trade currencies online with real money. But first things first. Compare a few Forex brokers and choose one of the providers. Virtually all brokers allow you to trade currencies online with a free demo account without having to deposit own money. With a demo account, you get a fictitious capital of e. We recommend you to test this out. With a demo account, you can gain experience without risking your own funds.
Only after you got know the trading software well and after you might have developed some own trading strategies, you should get into currency trading with real money. A first step with a low risk is the deposit of a small amount of real money, which you could lose without getting into any financial problems. Deposits can usually be made via credit card or by bank transfer.
While with a deposit with a credit card the money is immediately available to trade, it may take a few days when you deposit money by bank transfer until you can start real money FX trading. Some Forex brokers also accept deposits from online payment services like Paypal, Neteller or Moneybookers.
When using one of these so-called e-wallet services, you can instantly start trading with the deposited amount. Be sure to stick to the money management guidelines also when you only trade for small amounts of real money. Do not make trades with your whole balance. Set yourself a limit such as two or five percent of the account balance that you invest in a single trade. This way, you can gain plenty of Forex trading experience, even if you are unlucky and lose money in the long run.
Test with your broker if withdrawals work smoothly. Some Forex brokers require you to already submit electronically a proof of identity, such as a scanned passport copy, when applying for an online trading account. Other FX brokers require this verification of your identity only after your first real money withdrawal request. Wait and be patient before you start trading with bigger real money amounts.
Only when you have carried out hundreds of trades and when you have developed a successful trading Forex trading strategy, you should consider whether you want to increase your trading capital with an additional deposit of real money in order to possibly achieve greater profits.
But remember to deposit only so much money as you could easily afford to lose without getting into any financial trouble.More...