In this popular series, easy-forex takes a look at more frequently asked questions newbies have about the forex market…
How can I deposit funds or withdraw any profits I have made?
There are several methods provided by brokers for account funding as well as withdrawing funds from accounts. These are through the use of credit cards, e-payment channels such as Skrill (formerly Moneybookers), iDEAL, GiroPay, etc. You can also perform these transactions using bank wires or by the use of PayPal.
I cannot use credit cards to deposit or withdraw money. What can I do?
There are some countries which are prohibited from using credit cards on forex accounts as a result of international financial prohibitions. Such entities may be allowed to trade forex and deposit or withdraw funds using bank wire transfers or another method.
What are forex robots?
Forex robots are software tools that can be attached to a trading platform to open and close trades automatically on a trader’s account. Also known as expert advisors, they are built with certain programming languages according to the individual platform type.
Can I trade all currencies listed on my platform?
Theoretically, it is possible to trade all currency pairs listed on your platform without restrictions. However, it may be a good idea to focus on just a few that you are very familiar with and can handle properly.
Can I trade forex without an internet connection?
The only way to trade forex without an internet connection is to use a broker that provides a Virtual Private Server (VPS). You can then attach your account to the VPS, host a forex robot and attach it to your account on the VPS. The VPS now provides the internet connection on which the forex robot can trade on your account, even when your own computer is off.
Can I trade forex 24 hours a day?
The forex market is a 24-hour market which runs from 10pm GMT on Sunday to 10pm GMT on Friday (one hour earlier during Daylight Savings Time), so theoretically it is possible to trade forex 24 hours of the day. However, the market is not always active. There are specific times of the day when the market is most active.
Can I trade forex as a job?
Depending on the trader’s objectives and his/her trading skill, it may be possible to generate an income from the markets but this is not a certainty. A balanced approach that mitigates risk may be used, so that the account is not put into jeopardy by taking on too much risk for the sake of trying to generate a lot of money within a short time.
Do I need a large amount of money as a beginner?
No, It may be better that you test the market and try out your trading skills using small amounts of money that you can afford to lose. You may step up the trading amount as you gain more skill and experience.
Are commissions charged for forex trading?
If your broker is a market maker, you will not be charged any commissions. You will only pay the spread of the currency being traded. If you are using an ECN broker, then you will pay commissions outside of the spread.
I have about $5,000 in my savings account. Can I use it to trade forex so I can increase it?
You should only trade with money that you can afford to lose. Never trade with money that if lost, can impact your living circumstances adversely.
If I have $2,000 in my trading account, so I use it all on one trade?
Professionals recommend that you only use a maximum of 3% of your trading capital at any given time in forex. This will ensure that you do not lose money to the point of not being able to recover from these losses.
I am not the type that likes to take risk. Is forex trading for me?
Forex trading is a risky form of investment; even riskier than trading stocks. If you are risk-averse, you may wish to try less risky forms of investments.
Should I borrow money to start forex trading?
Forex is too risky an investment to play with borrowed funds. Only trade with money that you can afford to lose.
Risk warning: Forward Rate Agreements, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission (Easy Forex Trading Ltd- CySEC, License Number 079/07), which has been passported in the European Union through the MiFID Directive and in Australia by ASIC (Easy Markets Pty Ltd -AFS license No. 246566).