What is copy trading?

What Is Copy Trading

What is copy trading?

Copy trading is a segment of social trading where the primary trader’s positions are copied by another traders account when opened or closed.

To limit risk and prepare for any losses it is really important to do your own technical analysis on a position, financial instrument or particular market before you commit your real capital to the trade. Remember that when you are copy trading it is your capital that is at risk even though you are following an experienced trader.  There are various copy trading platforms and social trading platforms available. 

So how does copy trading work?

Copy trading works based on social networks and social trading platforms.  This was formerly known as mirror trading but has evolved into social trading.  Mirror trading is exactly as it sounds; you are mirroring another persons trades.  Copytrading and social trading are much the same.

 You can set up an account and then search the copy trading network of your platform for a trader that you like.  When those traders open a position they broadcast that information to other traders on the network who then can decide if they want to open the same position – or if you choose the automated, more hands off approach – the automated trading systems do it on your behalf without any further input from the trader.

Due to price movements being so small and frequent forex copy trading is very popular and constant monitoring is required. Copy trading in forex means that an inexperienced trader can copy another professional forex traders positions as opposed to having to scan the fast moving forex market themselves.

There are many trading platforms available that offer software for trading such as MT4 and MT5 for social trading.

One great benefit of copy trading

If you are a trade copier and want to get into forex social trading one great benefit is that the markets are open 24 hours a day.  So, you can make money (or lose money) at any time of the day. 

Here is a quick explanation from Investopedia:  Although markets in many foreign countries are closed when North American markets are open, trading on foreign currencies still takes place. While the majority of trading on a particular currency occurs when its main market is open, many other banks around the world hold foreign currencies enabling them to be traded at times when the main market is closed. For example, the North American markets are open when the Japanese markets are closed, but North American traders are still able to buy and sell Japanese yen through their brokerages and banks. However, the market for Japanese yen is more liquid at times when the Japanese market is open.

Example of copy trading

Let’s say you are based in the United States but there is a domestic market crash in Spain and you wanted to take advantage of this unfortunate situation and make some money.  If you have no experience with the Spanish market you could simply find a professional trader on your forex social network platform that is located in Spain and then rely on the expertise of that professional trader and copy their trades.

By finding the best forex traders to copy this allows you to make some money in the market but not have to know too much about the market.  It is really a nice way to break into markets that are unfamiliar to you.

Pros of copy trading

You can enter into markets with little to no experience in those markets.

You can choose to follow forex traders and assess their expertise then rely on their knowledge of the seasonal trends, political climate, etc.  This way you don’t have to know or understand exactly what is going on but can enter the market somewhat comfortably.

You don’t have to learn about any of the technicals indicators such as relative strength index (RSI), moving averages (MA), Fibonacci, MACD, oscillator or Bollinger Bands.

With copy trading you are really researching the best forex traders to follow by viewing their traders profile and making a decision based on their social trading profile and their proven track records.

Cons of copy trading

While copy trading allows you to cut a significant amount of the learning curve it provides no incentive for the copy trader to do their own research and technical analysis.  You can always copy a professional trader but in the end are you really taking a shortcut or are you truly learning a skill?

As with trading any financial security you still have risk.  Sometimes there are boards that are trying to influence a markets price for their own good.

Copy trading is alluring and can provide someone a quick entry into the market.

What should you do before copy trading?

  1. Do your own market research.  Especially if you are unfamiliar with the market.
  2. Choose a copy trading platform here.
  3. Find a social trading board on the platform.
  4. Copy the trades and open a position.
  5. Be sure to monitor your position and set stop limits to manage your risk.

If you want to learn more about copy trading forex you can sign up to our free forex trading course here.

6 Best Forex Indicators – Forex Strategies

RSI Learn Day Trading Featured Image

6 Best Forex Indicators

These 6 best forex indicators can be very valuable tools to analyze the charts in-depth details. Indicators are used by beginners and experienced traders. Using the indicators can be a simplified way to analyze the markets and find higher successful entries or exits. 

Besides that, indicator tools can be used to identify potential market reversal points, divergences, support and resistance levels, and more. From the indicators, you can choose indicators based on your forex strategies.

In this article, we will list the best forex indicators such as RSI, Moving Average, Fibonacci, MACD, and Oscillator and these are the free forex indicators that work.

Relative Strength Index (RSI)

The relative strength index is one of the most used indicators in trading and easily the most popular forex indicator. The indicator has been around for decades and it is used by thousands of traders. Using the indicator on your charts can be very helpful as it assists traders in finding “overbought” and “oversold” conditions. 

These conditions are known as uptrends and downtrends in the market. RSI uses different periods of movement such as 14-days, 30-days, and more. Then, the past price during these periods is shown on a small chart at the bottom of the MetaTrader software. 

Besides the average movement during the past days, we also have the levels on the right side of the indicators chart. These levels are known as 70 and 30 levels act as oversold and overbought zones. However, the levels can be configured to other values, but these values are most popular amongst other traders.

Best Forex Indicators

When the price hits the 70 levels, that’s considered as an overbought zone. RSI indicator predicts that when the price reaches 70 levels, that’s considered as an overbought. This would give us a sign to sell, as a possible bearish momentum could occur.

In the other forex strategy scenario, when the price touches the 30 levels, that’s considered as an oversold zone. The best scenario with the assistance of the RSI indicator would be to go long (buy). RSI predicts that oversold is about to end so a bullish momentum could occur.

Besides the predictions of bearish and bullish trends, RSI can help you with “divergence”. In the market, divergence can occur often and it may be hard to find a divergence without indicators. RSI is considered one of the best metatrader indicators because of the many benefits that it has on predicting the markets. Divergence occurs when the price on the charts doesn’t match with the indicator’s chart.

As we mentioned, the RSI indicator helps to detect bullish and bearish trends. The indicators can find the potential end of a bullish or a bearish trend. For traders, this can be very informative and useful information on their trading decisions. Using RSI can help you to spot potential reversal zones on the market. And, it is one of the simple forex strategies that work. 

Wanna learn more about forex indicators for free?  Sign up for our forex trading strategies here.

Moving Average (MA)

The moving average offers a comprehensive way to analyze the price using different periods of time. The MA is one of the best leading stock indicators. This technical analysis tool uses a period of time in days, weeks, or minutes. During the trends on the market, for e.x on an uptrend or downtrend, using the moving average tool can be very useful. 

The moving average measures the average price of the current currency pair over a specific period of time. You can set up the moving average in any period of time you want. If you set the period for 10 days, the chart of the moving average will show the average price during the past 10 days.

Moving average is the best indicator for scalping as it can be used in shorter periods such as minutes. Honestly, many traders make a living from scalping as it is one of the simple trading strategies that work. MetaTrader platform supports the moving average on the chart. So, you can easily set up the moving average tool and analyze the market on specific periods of time. 

Besides the 1 line of the moving average, you can add more than 1 line of the moving average. Adding more than 1 line of moving average can be helpful if you want to analyze the market on different periods. The moving average lines on the chart are shown in different colors and you can spot them easily.  This combined with the RSI compliment simple day trading strategies.

Support and resistance can also be found with the moving average. The lines on charts from the moving average help you to spot potential support and resistance zones. Moving average can be considered as one of the best mt4 indicators.

Fibonacci

One of the best technical indicator for trading is Fibonacci and it is an old tool that’s used very often on the market, especially in support and resistance zones. It is one of the best technical indicators for day trading.  The tool uses retracement levels that can act as support and resistance zones. Besides these zones, Fibonacci can predict potential market reversal zones. 

You can use the Fibonacci tool on an uptrend, downtrend, and consolidation (sideway) trends too. Fibonacci uses the 23.6%, 38.2%, 50%, 61.8% and 78.6% levels. These levels are the most popular and used levels when traders use Fibonacci. Other levels can be used and added to the Fibonacci levels, but the levels that we mentioned are the most popular ones.

The percentage levels on the numbers that we mentioned are very crucial zones. These zones could act as reversal zones or continual zones. In these zones, when the price breaks a value that can be considered as reversal zones. In scenarios where the price touches the values that we mentioned and cannot break it, that could be considered as support or resistance.

 Besides the potential reversal zones such as support and resistance, Fibonacci levels can be used with stop-loss and take profits. When you set a stop-loss price on the charts, using the Fibonacci with its levels, allows you to find potential retracement or reversal zones. So, to avoid the price hitting the stop-loss, you could set the stop-loss level below the retracement or reversal zones.

You can also place your take profit target on the Fibonacci levels. Fibonacci levels can be ideal levels to place your take profit target on the correct levels. 

Fibonacci levels can be drawn on trading platforms such as MetaTrader or TradingView. To find the Fibonacci retracement levels, all you have to do is find the recent swing high and swing low on the current time frame. Then, you need to connect these swings by using the Fibonacci line.

Using Fibonacci in your trading analysis can be a plus to “boost” your predictions on the market. There’s no limitation on the time frames that you can use. Fibonacci can be used for different trading styles such as scalp trading, swing trading, or day trading. The indicator can also be called as the best volume indicator forex.

Moving Average Convergence Divergence (MACD)

MACD indicator it’s used mostly to analyze the strength, momentum, direction, and duration of the trend. The indicator calculates the price from past days and calculates them mostly on the closing price. MACD values can be chosen based on your preferences, but the most popular period values are 9, 12, and 26.

MACD average values are shown on horizontal curved lines. Divergence can also be found and it’s shown on the bar graph at the bottom of your chart. MACD it’s not used often typically to identify potential oversold or overbought zones. The indicator appears on the chart with two horizontal lines. If the MACD chart shows the crossing line above the zero, that’s considered as a bullish signal. This gives a hint to buy or exit if we’re on a sell order because of a potential upcoming bullish momentum. 

When MACD crosses below zero, the momentum of the market is considered bearish. In this scenario, a sell order would be the best option or if you’re in a buy position, the indicator suggests closing that order. When the two lines on the MACD chart narrow with each other, the trend can be reversed. Besides the uptrend and downtrend, the MACD indicator it’s also used on a sideways trend. 

Oscillator

The oscillator indicator is a short-term indicator that focuses on lower time frames. The indicator provides predictions with overbought and oversold to get us the best forex trading signals. The oscillator indicator combines with the moving average tool to identify potential market breakouts or reversals.

Using the Oscillator can serve us to identify divergence, overbought or oversold confirmation, scalp trading, swing trading, and day trading. When the oscillator’s chart reaches the top, that gives a signal to a potential end of the bullish trend. This would allow us to exit from any buy positions and open sell orders. 

Similar to the overbought, when the oscillator’s chart reaches the bottom, that could give a signal to buy. The bearish trend can end soon and jump on a buy position according to the oscillator would be a good idea. Oscillator is also on the list of the best trading indicators.

Bollinger Bands

Bollinger Bands indicator serves mostly as an indicator to identify support and resistance zones. Besides the support and resistance, the indicator can help to identify most profitable chart patterns

The indicators use two lines, the upper and the bottom line. These lines can tell the strength and weaknesses of a trend. If the upper line goes up, that indicates bullish momentum. This could also tell a possible strong uptrend coming in the market if the prediction is correct.

If the bottom line goes down, that’s a hint of bearish momentum. Closing a buy position would be a good decision if the indicator manages to predict correctly. Besides the uptrend and downtrend, the Bollinger Bands can help to find a sideways trend which could tell us that the market’s trend will not change. 

However, if the price touches the bottom, that warns us for a potential market reversal. This could mean that the market uptrend is losing its strength and a potential bearish momentum could occur.

If you’d like to learn more forex trading strategies you can sign up for our free forex trading academy here.

Best Forex Broker – Best Forex Trading Platform

Forex Trading Platforms

Depending on where you are in the world may have an effect on what company you choose as your brokerage.  We have assembled what the best forex trading platforms from all over the world and made an online forex brokers comparison.  Have a look!

  • Oanda – The best US Forex Brokers
  • Tradersway – US Forex Broker
  • Pepperstone – The best forex broker in Australia
  • IG – The best forex broker in the United Kingdom
  • Plus500 – The best trading platform
  • FxPro– The best cTrader forex broker
  • eToro – The best copy trading forex broker
  • AxiTrader – The best MetaTrader 4 forex broker

Oanda – Best forex broker in the United States

best forex broker in united states

Founded in 1995, Oanda is a USA forex broker and one of the oldest forex brokers. The broker offers competitive spreads that start from 0.6 pips on major currency pairs. Powerful trading tools are available and compatible with MetaTrader 4 trading platform.

Oanda is a regulated broker that’s licensed to offer its service in the United States, Canada, Europe, Australia, and Asia-Pacific.

Trading Products

Oanda offers the following financial products to trade on their platform:

  • Forex
  • Indices
  • Metals
  • Commodities
  • Bonds

Account Types

Standard and Premium accounts are the available account types to choose from Oanda broker. Both account types are similar, except for minimum account balance, priority service queues, and open order indicators.

Standard account requires no minimum account balance and is a great platform for forex trading for beginners. Premium account types require a minimum account balance of $20,000.

Spreads & Commissions

The commission fee per 1 standard lot is $3.50 or $7.00 per 2 standard lots. Besides the transaction costs, Oanda charges an inactivity fee. A fee of $10 per month if you do not trade for at least 24 months (12 months in the US).

Spreads start from 0.6 pips on EUR/USD. Cross-pairs and exotic pairs have a higher liquidity on the market, so the spreads can shift very quickly.

Oanda Minimum Deposit

There is no minimum deposit for Oanda. However you can only deposit up to 50% of your net worth.

Trading Platforms

Oanda broker offers 4 options of trading platforms that you can choose to trade. Trade web, Trade desktop, Trade mobile & tablet app, and MetaTrader4 are the available platforms.

The platforms are available on many devices and offer a full trading experience. With one-click currency trading, you can open and close trade, use analytics tools, protect your trades against unexpected price swings, and more.

Besides the trading platforms, Oanda offers a variety of trading tools. The list of trading tools include:

  • Tools overview
  • Advanced Charts
  • Forex open position ratios
  • Forex order book
  • MT4 open order indicator
  • Technical Analysis
  • Trading performance portal

 

TradersWay – Best forex broker in the United States

best forex trading platform united states

The best MetaTrader 5 forex broker

Tradersway broker offers the best experience for the MetaTrader 5 platform. You can choose 4 account types to trade on different trading platforms. Tradersway broker offers access to 4 trading instruments like forex, metals, energies and cryptocurrencies.

There’s no limitation on the minimum deposit amount and you can trade with tight spreads. The maximum leverage is allowed up to 1:1000 and you  can also enjoy bonuses and promotions.

MetaTrader 5 platform

Tradersway forex is one of the best online brokers when it comes to the MetaTrader 5 platform. The platform allows several tradersway account types for trading on multi instruments including forex, crypto, metals and energies. You can use the trading platform to analyze forex charts on a full experience. Many tools are available to draw support and resistance zones, use fibonacci tools and more.

From the time frames, Tradersway platform supports up to 21 time frames and a long list of indicators. Expert advisors (EAs) are allowed so you can set up robots to trade automatically for you. The platform supports all types of orders with a quick  expected speed. With a single click you can open buy or sell positions immediately. Tradersway platform supports up to 100 charts in the platform, so you can monitor multiple financial instruments.

Social Trading

As we mentioned, the platform supports multiple time frames including the seconds, minutes, hourly, daily, weekly, and monthly. MetaTrader 5 platform provides access to over 80 technical indicators and analytical objects.

Additional indicators can be added on the platform easily with not a single issue.

The economic calendar will inform you with the latest financial news on the platform itself. News reports from international news agencies and forecasts on currencies and stocks are available too.

Besides the features and many benefits that you get with Tradersway MetaTrader 5 platform, there are other tools and features available. Social trading is available too with a simple platform that allows you to copy trades from other traders.

The copy trading process is very simple, all you need to do is choose the signal provider and complete the process by subscribing to the trader. Once you do that, all the trades will automatically open on your trading account too.

Tradersway App:

Tradersway offers metatrader for iPhone and Android.  Using mobile terminals in daily activities offers a way to keep up with your accounts when you don’t have access to a desktop computer.

Tradersway Minimum Deposit

There is no minimum deposit to get started.   For ECN accounts the minimum deposit is only $10.

Bonus

Tradersway bonus offers a 100% deposit bonus when you deposit funds. The bonus will be automatically credited to your account once you choose the deposit bonus from the drop down list and accept the terms and conditions. 100% deposit bonus is limited to $5,000 per account and cannot be withdrawn.



Pepperstone forex review- Best broker in Australia

best forex broker australia

Next on our list of best forex brokers is Pepperstone fx. Pepperstone is one of the top forex brokers in Australia. The broker was founded in 2010 and it has more than 50,000 traders registered. Pepperstone is regulated by the Australian Securities and Investments Commission (ASIC) in Australia and Financial Conduct Authority (FCA) in the United Kingdom.

Trading Products

From the trading products, Pepperstone offers a variety of financial products to trade including:

  • Forex
  • Index CFDs
  • Stocks
  • Commodities
  • Cryptocurrencies

Account Types

Traders can choose from 2 account types to trade, Standard, and Razor. Both accounts offer almost similar features, the main difference is on the variable spreads and commissions. Standard account provides spreads that start from 1 pip, although the commission does not apply.

Spreads & Commissions

Razor account offers tight spreads that start as low as 0 pips, however the commission applies on trades. A commission fee of $3.50 per 1 lot will apply to all positions opened with the Razor account.

Trading Platforms

The most popular online trading platforms, Pepperstone MetaTrader4 and Pepperstone mt5 are available on both account types. Besides MetaTrader platforms, Pepperstone also offers a cTrader and web trading platform. MetaTrader 4 and 5 come with pre-installed indicators and many features.

cTrader is an advanced trading platform that offers a unique design and outstands other trading platforms. WebTrader is an online web platform that allows trading through web browsers such as Chrome, Firefox, Edge, etc.

Pepperstone Deposit

The recommended pepperstone minimum deposit to trade is AUD$200 or equivalent. However, you can deposit less than this to get started.

See our Pepperstone sign up below.



IG – Best forex broker in the United Kingdom

Best forex broker in the United Kingdom

IG forex broker has operated since 1974 and it has more than 239,000 clients worldwide. The broker offers over 17,000 markets to trade and with multiple trading platforms supported. IG Group is regulated by the UK’s Financial Conduct Authority (FCA).

Trading Products

IG forex trading offers more than 17,000 financial markets to trade. As a client of IG broker, you can trade:

  • Forex
  • Indices
  • Stocks
  • Commodities
  • Cryptocurrencies

Account Types

IG offers only account type but some of the products are limited in some countries. Trading products are fully available to United Kingdom clients. If you’re from the United States, then, you cannot trade CFD products.

Spreads & Commissions

Spreads on forex pairs start from 0.6 pips and can go above that when you trade other currency pairs. When it comes to commission fees, IG applies a price that’s higher compared with other brokers.

Per each standard lot position opened, you’ll be charged $10 per position. Besides commission fees per open trades, IG also charges inactivity fees. Clients that do not trade in a period of 24 months will be charged with a monthly fee of $18.

Trading Platforms

IG broker of faster and smart trading platforms. One of the most popular trading platforms, IG mt4 it’s available for IG clients. Besides MetaTrader 4, there are other platforms available including custom mobile and desktop trading platforms.

Other tools are available such as technical signals, that give you indicators whether to buy or sell. Algorithmic trading it’s available to use, so you can trade based on your created algorithms. You can also set up alerts when your target prices reach the configured level.

IG Forex Leverage

IG offers a relatively low maximum leverage of 50:1, whereas many other forex providers offer leverage of up to 500:1.



Plus500 – Best trading platform

Best forex trading platform UK

Plus500 broker based in the UK offers more than 1000 financial instruments to trade. Plus500 offers competitive pricing spreads with no commission and a unique trading platform. The broker is known for its custom advanced trading platform and its features.

Over 2000+ products available

Plus500 provides access to over 2000+ products such as:

  • Forex
  • Indices
  • Commodities
  • Crypto
  • Stocks
  • Options
  • ETFs

Notifications & Alerts

Plus500 trading platform alerts in real-time with notifications. You can configure notifications so you will receive notifications on your phone via SMS, email, or push notifications. Alert notification will let you know when a certain price of the forex market reaches the price that you’ve configured to alert you.

Risk Management

One of the features that is different from other platforms is risk management. Compared to other platforms, Plus500 forex offers an advanced risk management system. The features give you maximum protection from a negative balance.

Risk management system includes these features:

  • ‘Close at Profit’ [Stop Limit] or ‘Close at Loss’ [Stop loss] rates
  • Guaranteed Stop
  • Trailing Stop

With these features enabled, you’d guaranteed a risk protection for your account. In scenarios when you’re suffering a huge loss on your trades, risk management closes your trades at the level price that you’ve set.

Besides the negative balance protection,  risk management also closed your trades automatically at the price level that you’ve set. So, your take profit level will be executed automatically.

Mobile & Windows compatibility

Plus500 forex trading platform it’s available on Windows 10, Plus500 Android, and Plus500 WebTrader. The platform can be used on the systems that we mentioned and the platforms offer similar functions on all devices.

However, using the trading platform on WebTrader or using the application on Windows gives you a “full experience” of the platform. Some features can be more difficult to use on the Plus500 app on Android. So, using the app on Windows and Android can have a bigger impact on your trading analysis.

Is Plus500 Good For Beginners?

Plus500 is good for beginners and is user friendly.  Plus500 minimum deposit is $100 USD.

See the Plus500 bonus by opening an account below.



FxPro – Best cTrader broker

FxPro - Best cTrader broker

FxPro is one of the best forex brokers for its platform, cTrader. The platform offers a seamless experience to analyze the forex markets and access the foreign exchange market in full-depth. Spreads start from 0 pips and there are no restrictions on stop/limit levels.

Fast Order Execution

cTrader platform it’s known for its complexity and fast order execution. FxPro offers a cTrader platform to its clients ensuring there’s a low latency and fast execution of trades. cTrader server offers under 1ms latency with data centers located on major locations.

Smart Stop Out

One of the main features of the FxPro cTrader platform is the “smart stop-out”. This feature is designed to provide maximum to the forex trader’s accounts. Smart stop out uses a much more advanced algorithm that improves the way of stop out.

In situations where the margin level falls below the smart stop out level, positions will start to close partially. Positions will continue to close until the margin level goes above the smart stop out level.

FXPro Minimum Deposit

The FxPro MT4 and MT5 have an FxPro minimum deposit of $500.

Other features

Besides an advanced design and seamless experience, the FxPro cTrader platform offers other features such as:

  • Real-time forex and CFD quotes
  • No restrictions on limit orders
  • Detachable charts
  • Expanded symbol display
  • One-click trading
  • Funding and withdrawing options
  • Full market depth
  • Open a FXpro demo account below


eToro – Best copy trading broker

eToro - Best copy trading broker

eToro forex copy trading offers a unique trading platform that’s different from other brokers. If you want to become a copytrader then copy trading is the inbuilt platform that has made eToro one of the leading brokers for copy trading. The unique innovative system allows forex traders to trade by copying other traders.

Copy Trading

The etoro copy trade feature allows you to view other professional traders and copy their traders instantly. The copy trading feature is automatic and you can copy trades within a couple of seconds. eToro does not charge hidden fees and management fees known as inactivity fees.

To copy trades from other professional traders, all you need to do is search for traders. You can search traders by performance, assets, risk score, and other options. Once you select the trader, you’ll need to choose the amount that you wish to trade by copying the trades. Then, all you have to do is hit the “Copy” button and the copy trading will begin automatically.

eToro’s copy trading platform allows traders to copy up to 100 traders. When you start copying trades, the stop loss and take profit will be the same according to the trader that you are copying. If the trader adjusts the stop loss or take profit, that will affect your stop loss or take profit too.

A minimum deposit of $200 is required so you can start investing by copying trades. The maximum amount that you can invest by copying trades is limited to $2,000,000. Besides copying other traders, you can also allow other traders to copy your trades. To do that, you’ll need to become part of “eToro’s Popular Investor Program”.

Social Trading

eToro social trading is similar to social media sites. eToro has created a social news feed style that is unique by allowing traders to explore. With social trading, you’ll be able to interact with other members of eToro by starting discussions, replying, posting your updates, and more.

You’ll be notified when other users that you’re following post a new status or update, and add assets to the watchlist. Notification will appear on web platforms and mobile devices with push notifications. eToro’s social trading platform allows you to create a profile that can be viewed by other members. From your profile, you will be able to show your social activity including posts, comments, trades, and more.

eToro Fees

eToro offers free stock trading. On the negative side, forex trading fees are high and there is a fee charged for inactivity or withdrawal.

AxiTrader – Best MetaTrader 4 broker

AxiTrader - Best MetaTrader 4 broker

AxiTrader was founded in 2007 and it offers its service in more than 100 countries. AxiTrader is one of the best MetaTrader 4 brokers that offers low spreads with a $0 deposit.

MetaTrader 4 platform

AxiTrader offers only the axitrader mt4 as the forex trading platform to trade. MetaTrader 4 is one of the most used platforms by traders. The platform is customized and comes with customizations and features. Traders can download MetaTrader 4 on PC, Mac, Android, iPhone, and iPad.

Besides these devices, MT4 WebTrader is available and can be used to trade directly from a web browser. MetaTrader 4 offers flexibility in forex trading with different tools to analyze the forex market. Real-time charting allows you to view the market with live charting options. AxiTrader offers over 150 products traded on the MetaTrader 4 platform.

PsyQuation

AxiTrader offers an artificial intelligence analytics platform for traders. PsyQuation is built using AI and machine learning that’s designed to identify strengths & weaknesses. The analyzing platform works as a private trading coach known as “mentor”. Artificial intelligence will analyze your forex trading history to improve your profitability of the trades.

The platform will alert you for potential trading mistakes based on past trading behavior. PsyQuation platform will also analyze your performance and trading style by comparing it with the latest data. PsyQuation score ranks your skill on a table that will help you to track your progress and predict future performance.

Axitrader Minimum Deposit

Axitrader has no minimum deposit. Axitrader also has an axitrader demo account you can open for free below.

Forex Trading For Beginners​ Forex Trading Tips

Forex Trading For Beginners​ Forex Trading Tips

The term forex or FX refers to the foreign exchange market that allows traders to buy and sell different currencies. Traders choose this market because of its size, the wide variety of currencies, the possibility of high volatility that can be translated in profits and the low transaction costs that are charged by some of the brokers.

Beginners who want to conduct forex trading should realize that this is a market like so many others that is subject to demand and supply. If the demand for a currency such as the US dollar is high, people will exchange their other currencies for it and cause it to increase in value or appreciate. It is also possible that depending on the amount and currencies traded, the US dollar could appreciate compared to the Euro and depreciate compared to the British pound or GBP. This is why when predicting the movement of a currency pair it is important to consider both currencies and the countries or regions from where they are issued.

 The forex trading strategies can be complex, but they are based on some simple principles that are obvious. If you anticipate that the value of a currency will increase, you buy it or take a long position as it is also called. If you predict that the value of a currency will decrease, you sell it or take a short position on it.

Forex Trading Terminology

Some basic terminology should be clarified next, to make currency trading less intimidating and more approachable to people who want to try it. A currency pair is composed of a base currency that is stated first and a variable or quote currency that is stated second. Looking at the EUR/USD currency pair, the Euro is the base currency and the US dollar is the variable or quote currency. This currency pair shows how many dollars does a Euro cost. A trader taking a long position on this pair will anticipate an appreciation in the dollar or a depreciation in the Euro. In a similar way, a trading taking a short position on this pair will predict an appreciation in the Euro or a depreciation in the dollar.

 

Once it has been determined what is bought and what is sold, the next consideration will be the price charged for this transaction. The bid price is the highest price a forex trader will get from selling as it represents how much the buyers are prepared to pay. It is usually placed on the left of the quote and is in red. The ask price is the lowest price that a trader will be allowed to buy at, as it is the lowest price a seller is willing to accept. It is usually placed on the right and is colored in blue. The spread is the difference between the ask and the bid price and is composed from the actual forex market spread plus the additional spread of the broker. This is why different brokers will have different spreads and this price is a real criterion when choosing between them.

Forex Leverage

Another consideration of conducting forex trading is leverage. This leverage allows the trader to invest only a fraction of the trade as opposed to the full amount. For example, if a trader deposits an initial margin of $1,000 and has a 100:1 leverage, by doing the multiplication it results that his trading position is $100,000. Without leverage only financial institutions and big companies would have access to the forex market, as traders would have to put down the full amount of money they want to trade with. The leverage allows to have a big trading position and register profits and losses quicker by starting with an initial margin. This margin is the amount of money needed to open a leveraged position. All the profits and losses are added to or subtracted from this margin account.

It is particularly important to choose a leverage that is suited to you when starting with currency trading. The leverage should be high enough that you are well compensated if the price moves as predicted. However, a disproportionate leverage is a liability as it can contribute to a substantial loss of capital. A good trader should know how to balance risk and return and select a suitable leverage that is closer to 10:1 as opposed to 100:1. A high amount of losses can determine a margin call. This means that the capital has decreased below a certain level and more funds are required to continue trading. This is a situation that should be avoided through money management and by choosing a moderate level of risk. 

Traders who are just beginning to activate on the forex market should realize that the price of a currency depends on a multitude of factors such as the interest rate, GDP, debt or the rate of inflation in the corresponding region. Studying factors such as these, (sign up for our free currency trading for dummies here) reading economic news and being informed of other events is called doing a fundamental analysis. Looking at mathematical indicators of the price is called technical analysis. Both of these approaches should be considered by traders as anticipating price movements is a complex procedure that requires good reasoning.

Forex Trading Tips

Beginners should also know and conform to the following forex trading tips. First of all, it is a good idea to start trading on a demo account. This will be a good opportunity to see how your predictions compare to the currency pair movements and the real market conditions. The second tip is to create a trading plan that should include profit goals and a risk tolerance amount. Once the plan is in place, you should stay disciplined and follow it, by closing positions to take profit or to cut losses. If positions are left open for too long the price can move in a way you have not anticipated and you are relying on luck instead of following the initial plan. The third tip is to choose a trading broker that is right for you and that has good pricing, features, quality customer service and a friendly interface that can help you in your trading activity.

When you are learning how to start forex trading you should also welcome any opportunity to learn and grow, from reading financial articles and economic news to seeing what other traders are doing and how do they succeed to make a career from currency trading. Conducting successful forex trades can appear to be simple but requires a lot of work, patience, interest and consistency to attain the wanted results.  

To learn more about forex trading tips you can sign up for our free online trading academy here. Get started by clicking the blue “take this course” button.  Good luck!

Crypto Currency Trading​

Crypto Currency Trading

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