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How to become a legal forex trader?

Forex trading, also known as foreign exchange trading, is a lucrative and exciting career choice for many people. It involves buying and selling currencies in the global market to make a profit. However, becoming a legal forex trader requires some knowledge and skills. In this article, we’ll discuss the steps you should take to become a legal forex trader.

Step 1: Understand the Forex Market

The first step to becoming a legal forex trader is to understand the forex market. You need to know how it works, how to analyze the market trends, and how to identify profitable trading opportunities. You can start by reading books and online resources about forex trading, attending seminars or webinars, and watching videos on YouTube. You might also want to practice trading on demo accounts to get a feel for the market before you start trading with real money.


Step 2: Choose a Reliable Broker

The next step is to choose a reliable forex broker. A broker is a company that provides a platform for trading currencies. You need to choose a broker that is regulated by a reputable financial authority such as the Financial Conduct Authority (FCA) in the UK, the National Futures Association (NFA) in the US, or the Australian Securities and Investments Commission (ASIC) in Australia. A regulated broker is required to follow strict rules and regulations to ensure the safety and security of your funds.

Step 3: Open a Trading Account

Once you’ve chosen a broker, the next step is to open a trading account. You’ll need to provide some personal and financial information to the broker to verify your identity and comply with regulatory requirements. You’ll also need to deposit some money into your account to start trading. The amount of money required varies from broker to broker, but it’s usually around $100.

Step 4: Develop a Trading Strategy

Developing a trading strategy is crucial to becoming a successful forex trader. A trading strategy is a set of rules that you follow to make trading decisions. It should include your entry and exit points, risk management strategies, and the types of currencies you’ll trade. You can develop your trading strategy by analyzing market trends, using technical indicators, and paying attention to economic news and events.

Step 5: Start Trading

Once you’ve developed your trading strategy, it’s time to start trading. You should start with small trades and gradually increase your position size as you gain more experience and confidence. It’s important to stick to your trading strategy and not let your emotions dictate your trading decisions. You should also be prepared to lose money, as forex trading involves a high level of risk.

Step 6: Monitor Your Performance

Monitoring your performance is essential to becoming a successful forex trader. You should keep a trading journal to record your trades, including the reasons for entering and exiting a trade, the profit or loss, and the lessons learned. You should also regularly review your trading strategy and adjust it if necessary based on your performance.


Becoming a legal forex trader requires some knowledge and skills, but it’s a rewarding and exciting career choice. To become a legal forex trader, you need to understand the forex market, choose a reliable broker, open a trading account, develop a trading strategy, start trading, and monitor your performance. Remember that forex trading involves a high level of risk and you should never trade with money you can’t afford to lose.


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