Forex Beginners

[>Apocalypto<]

That sounds like a great way to begin although what broker would you suggest? As having such a small account would be susceptible to spreads etc.

I know IB are good brokers but they mention requiring 10,000 USD to fund the account and 100 executions.

Thanks.

Hi, I used IB for 2-3 years.. loved them. but for a beginner it's not your first choice. as noted you need to open with USD 10K minimum 2nd if you're not trading 100K the coms will hurt you. IB are a fantastic Broker but start on a MT4 broker till you get to their required level.

I think Pepperstone or Gomarkets are perfect to start out with. I am with Pepperstone atm. I am not trading a large account. (SUB 2K) I use Pepperstones edge razor acc and i'm happy with it. I also used go markets and think there good as well. both offer unlimited demos. I just find Pepperstones edge razor acc offers better spreads on the GBPJPY which is the only pair I trade atm.

cheers

 

[TulipFX]

That sounds like a great way to begin although what broker would you suggest?

ICMarkets or Pepperstone.

You can see there is only a slight difference between the two:



Commissions included in that spread shown.

Can play with the broker/spread matrix here: http://www.myfxbook.com/forex-broker-spreads

Hope that helps. Green pips.

 

[tradeboy]

Forex beginners should start trading after only practicing hard in a demo account. It is not adviseable that a trader goes directly in his real account and ignores demo trading, in this way he will take long to become a profitable trader.

 

[minwa]

Forex beginners should start trading after only practicing hard in a demo account. It is not adviseable that a trader goes directly in his real account and ignores demo trading, in this way he will take long to become a profitable trader.

I disagree, demo account should only be used to get familiar with the executions, thats all. You don't learn much when your money is not on the line. Your psychology is different.

Go straight into real account with a decent amount that you will feel for and lose it (most likely). You're going to end up blowing it, might as well get it over with early before playing around. Learn the lessons early on. Cost you less in the long run.

 

[CanOz]

I disagree, demo account should only be used to get familiar with the executions, thats all. You don't learn much when your money is not on the line. Your psychology is different.

Go straight into real account with a decent amount that you will feel for and lose it (most likely). You're going to end up blowing it, might as well get it over with early before playing around. Learn the lessons early on. Cost you less in the long run.

In my view a demo account should be used to perfect the use of the platform, practice execution of your stable of plays and collect some decent stats to determine when and IF you go live, you'll have a chance at being profitable. The psychological factors will be easier to overcome if you have confidence in your ability/skill/playbook backed up by a solid run on a sim account...I'm talking hundreds or many hundreds of trades on one market.

 

[minwa]

In my view a demo account should be used to perfect the use of the platform, practice execution of your stable of plays and collect some decent stats to determine when and IF you go live, you'll have a chance at being profitable. The psychological factors will be easier to overcome if you have confidence in your ability/skill/playbook backed up by a solid run on a sim account...I'm talking hundreds or many hundreds of trades on one market.

Hundreds of trades, means you are day trading ? You probably are trading futures I beleive not forex because the spreads on demo forex accounts which almost all beginners use, MT4 brokers, are lower than actual live accounts. This greatly skews the results for day traders. I have compared 3 brokers, side by side demo and live. You may find it you get different results when you fund a live account which limits the usefulness of demo accounts.

 

[CanOz]

Hundreds of trades, means you are day trading ? You probably are trading futures I believe not forex because the spreads on demo forex accounts which almost all beginners use, MT4 brokers, are lower than actual live accounts. This greatly skews the results for day traders. I have compared 3 brokers, side by side demo and live. You may find it you get different results when you fund a live account which limits the usefulness of demo accounts.

I see your point...So why not trade through IB or just trade currency futures?

 

[Wysiwyg]

Another alternative is to purchase a T.A. and trading system testing software package. Acquire historical data (I keep back fills from bought real time data as well as free unadjusted data) and test with the Charting software. That way you can grasp an idea of what may work in real time as well as study price action. Stabbing at prices on a simulation chart won't teach you what you want to know. That is (as Tech.A often quotes) "is this system profitable". First create a system away from the game and then test it on simulated prices. Either way it can be a long road and many do not make it.

 

[minwa]

I see your point...So why not trade through IB or just trade currency futures?

I do trade FX through IB, but beginners are not going to, nor will they touch futures. Generalisation but I think it's pretty true in most cases.

 

[daniellindsay]

Not sure what or who's comment you are replying to, but it doesn't really make much sense to any of the postings?

So true!

 

[rcctradings]

IB are a fantastic Broker but start on a MT4 broker till you get to their required level.

cheers

Is the MT4 Dealer Virtual Plugin still a concern? Pepperstone/GoMarkets don't use it?