Forex Trading 2021 – Tutorial and Brokers
Forex trading is a huge market. Trillions are traded in foreign exchange on a daily basis. Whether you are an experienced trader or an absolute beginner to online forex trading, finding the best forex broker and a profitable forex day trading strategy or system is complex. So learn the fundamentals before choosing the best path for you.
With this introduction, you will learn the general forex trading tips and strategies applicable to currency trading and online forex. It will also highlight potential pitfalls and useful indicators to ensure you know the facts. Lastly, use the trusted broker list to compare the best forex platforms for day trading 2021.
Read on to discover the A-Z of forex, how to start trading, and how to judge the best platform…
Top 3 CFD Brokers
IG
- Please check all terms and conditions. 71% of retail investor accounts lose money when trading spread bets & CFDs with this provider.
Cryptocurrency
Yes
MT4 Integration
Yes
MT5 Integration
No
Min. Deposit
$250
Min. Trade
0.01 lots
Bonus
None
Interactive Investor
- Please check all terms and conditions.
Cryptocurrency
No
MT4 Integration
Yes
MT5 Integration
no
Min. Deposit
$0
Min. Trade
0.01 lots
Etoro
- Please check all terms and conditions.
Cryptocurrency
Yes
MT4 Integration
Yes
MT5 Integration
Yes
Min. Deposit
$100
Top Brokers
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Forex Opinions
Why Trade Forex?
The forex currency market offers the day trader the ability to speculate on movements in foreign exchange markets and particular economies or regions. Furthermore, with no central market, forex offers trading opportunities around the clock.
- Liquidity – In the 2021 forex market, the average volume traded per day is over $6,6 trillion. So, there is an abundance of trades and moves you can make.
- Diversity – Firstly, you have the pairs stemming from the eight major global currencies. On top of that, many regional currency pairings are also available for trade. More options, more opportunities to turn a profit.
- Accessibility – While not quite 24/7, the forex market is readily accessible, open twenty-four hours a day, five days a week. As a result, you decide when to trade and how to trade.
- Leverage – A significant amount of forex currency pairings are traded on margin. This is because leverage can be used to help you both buy and sell large quantities of currency. The greater the quantity, the greater the potential profit – or loss.
- Low commissions – Forex offer relatively low costs and fees compared to other markets. In fact, some firms don’t charge any commission at all, you pay just the bid/ask spreads. True ECN firms may also offer 0 spread!
Currencies Traded In Forex
Major
In the international forex day trading world, the vast majority of people focus on the seven most liquid currency pairs when learning how to trade forex – these are known as the four ‘majors’:
- EUR/USD (euro/dollar)
- USD/JPY (dollar/Japanese yen)
- GBP/USD (British pound/dollar)
- USD/CHF (dollar/Swiss franc)
In addition, there are three emerging pairs:
- AUD/USD (Australian dollar/dollar)
- USD/CAD (dollar/Canadian dollar)
- NZD/USD (New Zealand dollar/dollar)
These major currency pairs, in addition to a variety of other combinations, account for over 95% of all speculative trading in the forex market, as well as retail forex.
However, you will probably have noticed the US dollar is prevalent in the major currency pairings. This is because it’s the world’s leading reserve currency, playing a part in approximately 88% of currency trades.
Will that dominance continue?
Minor
If a currency pairing doesn’t include the US dollar, it’s known as a ‘minor currency pair’ or a ‘cross-currency pair’. Hence the most popularly traded minor currency pairs include the British pound, Euro, or Japanese yen, such as:
- EUR/GBP (euro/British pound)
- EUR/AUD (euro/Australian dollar)
- GBP/JPY (British pound/Japanese yen)
- CHF/JPY (Swiss franc/Japanese yen)
You can also delve into the trade of exotic currencies such as the Thai Baht (THB), Indian Rupee (INR), South African Rand (ZAR) and Norwegian Krone (NOK). However, these exotic extras bring with them a greater degree of risk and volatility.
Forex Broker Reviews
Use this table with reviews of the top forex brokers to compare all the FX brokers we have ever reviewed. Note that some of these forex brokers might not accept trading accounts being opened from your country. If we can determine that a broker would not accept your location, it is marked in blue in the table.
Broker
Demo
Min Dep.
MT4
Bonus