Forex Basics

Avoid These Mistakes that Will Completely Blow Your First Broker Deposit

Let’s be honest. The majority of us have probably blown our first trading account. The majority of us have probably blown our second account, too. The majority of traders will lose their first deposit or at least a part of it. But why is this? What are they doing that causes them to lose pretty much their entire balance? There are plenty of reasons why this happens, each one will be different depending on the trades in question, but we are going to be looking at some of the common reasons as to why traders end up blowing their initial deposits with their broker.

Trading Without a Plan

Your trading plan should be the first thing that you create, yet so many people do not do it before they start trading. Either they have come into trading with the idea that it is easy, and all they have to do is predict the movement and they will be rich, so they don’t need this plan. These sorts of people come from the thousands of adverts that you see out the promising high returns which simply are not real. Then there are those that know what they need to do but are simply too lazy to do it. These people don’t bother with the plan either and instead go the lazy route of guessing where the markets will go, or simply copying what others are doing. Either way, both of these people will end up losing their accounts, simply because they do not understand what it is that they are doing properly, a recipe for disaster whatever you are doing.

Lack of Education

A lack of education is another killer of accounts. There is a lot to learn when it comes to forex and trading, too much for any one person to learn. However, there are certain things that you need to learn before you start trading. If you do not then you will be bound for losses. You need to learn some of the basic terminology, different order types, and also things like risk management which will allow you to protect your account and your capital within that account. If you do not learn even the basics then you will be guessing and you will be making mistakes. Mistakes that will cost you money. You do not need to learn the world, you do not need to know what an expert does, but you need to know what you’re doing, why you are doing it, and how you can protect yourself from losses.


Gambling, something best left for the bookies, yet it is something that a lot of people come into trading and do. People gamble for a number of reasons, for the thrill of it, due to not fully understanding what they are trading, being lazy, or simply wanting more easy money. Whatever the reason behind why they are gambling is, it doesn’t change the fact that what they’re doing is dangerous and will lead to a loss of your balance or even your account as a whole. It may seem simple, the markets will either move up or down, so it’s a 50/50 chance that we will be right. Unfortunately, the markets don’t work like this and it is a little more complicated. In fact, there are hundreds of things that affect the markets, and simply guessing will make you wrong the majority of the time. If you want to gamble, do it away from forex, there are far better things to gamble on, but we can assure you, if you decide to do it here, you will just end up with a zero account.

Trades Are Too Large

A lot of people come into trading with the expectation that they can make a lot of money. While this is true, there are things that you need to do to protect yourself first. One of those things is not trading too large. The idea of making a lot of money can be an enticing one, it can cause people to place trades that are far too big for their account which in turn would cause them to lose a lot of money on their trades. If you place a trade that is too large for your account, a single trade can cause it to blow. Many people do this due to the lack of knowledge on how big their trades should actually be, going in blind, and then guessing is never a good strategy. So ensure that you understand how big each trade should be for your account when trading. This should be outlined in your trading plan when you create one.


Similar to the point about overtrading is when a trade simply places too many trades. The more trades that you put on the more risk that your account is under. There is also something known as margin, which is basically a figure that tells you how much you are able to trade. The more trades that you put on the lower the margin becomes, and when it reaches a certain level, your broker will actually close out all of your trades at a loss. If you don’t understand this, you will continue to put on trades until your margin is used up, then even the smallest movement in the wrong direction can cause your account to close and basically lose everything that is in it. Your strategy should have a max number of open trades allowed, try not to exceed it and try not to place trades simply for the sake of placing trades.

Using Emotions

Emotions are strong. Emotions have the ability to take over and emotions have the ability to blow your accounts. Do not let this happen. Instead, you need to be in control. If you feel things like greed, overconfidence, doubt or any other emotion start to creep in, this is your time to step away. When you trade with greed or overconfidence, which many traders (especially new ones) do, you will be putting your account at risk. You will be placing more and larger trades, trades that you probably shouldn’t be making, putting your account at risk and when you do that, there is a good chance that your account will be drained. If you are feeling emotional, try not to trade. Go out for a bit, take time to relax, and then come back with a calmer and clearer mind.

Not Using A Demo Account

It is always recommended that you use a demo account to begin with. If you are coming straight into trading then you most likely do not have any experience. You also probably don’t have a whole host of knowledge, if this is the case, then do not jump straight into trading on a live account. Instead, you should be using a demo account, this is where you can practice your strategies, practice putting on trades and basically ensure that you have some sort of idea of what you are doing before you start risking any of your own money. The last thing that you want to do is to jump into a live account with your real money only to realise that you do not know what you are doing. It is best to learn that on a demo account where your money is safe.

These are some of the things that people do that end up blowing their first account balance. We have all been there, so if you have experienced it, do not feel disheartened. Even some of the best traders in the world have blown accounts. It is simply a part of trading. Learn from it, develop yourself further and you can help to ensure that it doesn’t happen to your second or third account.

Beginners Forex Education Forex Basics

I’m Ready to Trade! What Type of Trading Account Should I Choose?

If you’ve ever considered opening an account with a forex broker, you likely considered an option that offered multiple account types. While some brokers only offer one account with the same conditions to all of their clients, others offer two, three, or even several completely different accounts with separate conditions. Choosing the right account can be beneficial, but some beginners have a hard time figuring out which option is right for them. Do keep in mind that each broker has separate offers and conditions will be different wherever you go, but we will break down the main types of accounts that are usually offered below.

Account Type 1: The Mini/Micro/Cent Account

These accounts are usually marketed towards beginners for a few reasons. For one, they can be opened with a small amount of money, with minimum account opening deposits typically falling between $1 and $100. This is attractive for those that don’t have a lot to invest in or those that don’t want to put in a lot of money at first. These accounts are also known the limit the maximum trade size offered, but this usually isn’t a problem for new traders that aren’t prepared to make larger trades. On the downside, these accounts often come with the highest spreads and don’t offer many other perks. If you do plan to open one of these account types, be sure to shop around to find the best conditions possible. 

Account Type 2: The Standard Account

A standard account is the most common type of trading account that is available. The minimum opening deposit varies widely for these accounts depending on the broker you choose, but it is typically as low as $100 to $500, although the cost can go into the thousands. Maximum trade size options are usually equal to or higher than those on the broker’s mini account, but leverage options are usually slightly tighter. Expect average commissions and spreads starting at 1.5 pips on these accounts, but do be aware that some brokers will still try to charge you insane rates if you don’t open a more expensive account, so check with several different brokers to find the best deal.

Account Type 3: The Platinum/Silver/Gold Account

While names for accounts of this tear can vary, many brokers offer one or more accounts that fall in between their standard and VIP accounts. You’ll usually find a lot of perks on these accounts, like tighter spreads and reduced commissions, along with other possible perks like an account manager, one free withdrawal a month, better bonuses, etc. On the downside, you can expect to invest a pretty penny into one of these accounts, with most opening deposits starting in the thousands. If you do plan to make a larger investment, you will probably find a much better deal if you can find a broker with one of these accounts available. 

Account Type 4: The VIP Account

Brokers reserve their VIP accounts for traders that can afford to deposit a ton of money, usually anywhere from at least $20K into the hundreds of thousands of dollars. If you can afford a VIP account, you’ll be receiving the very best perks offered by the broker, starting with the tightest spreads (often starting at 0 pips) and very low or zero commission charges. Many brokers also sweeten the pot with a personal account manager or one-on-one lessons with an expert and great bonus options, along with expedited or fee-free withdrawals and superior customer service options in some cases. If you can ever afford to open a VIP account, be sure to find a broker that will shower you in perks for making such a large investment.

Forex Basics

Everyone Should Know This Before Opening A Live Account

Sometimes we just can’t wait to go live, start trading and earning money. After all, that is why we are here trading in the first place. Going live means that we will be trading with our own money instead of the pretend money that we have when using a demo account. However going live, as exciting as it is, is not something that you should jump into straight away, this is true whether you are trading manually or using an expert advisor.

There are a lot of big steps and things to consider should you decide to move over to a live account, there are certain things that need to be ready and certain psychological preparations that you will need to ensure that are set up and ready to go. We have made a list of a few different things that you should probably consider before you decide to go live, of course not all of the things are relevant to everyone but some of them certainly will be, so consider them before going live, if you already are live, then consider whether you need to start doing any of these things or even potentially moving back to a demo account should you actually feel you maybe aren’t quite ready to go live.

How long have you been trading?

This one should be quite easy to answer, the standard thing to do is to consider whether or not you have been trading regularly for the past six months. Don’t think about whether it was profitable or not, just that you have been doing it regularly. The definition of regular will vary from person to person so consider it along with your strategy. If your strategy wants you to trade 5 days a week then ensure that you have been trading 5 days a week for six months, if your strategy only requires 3 days a week then ensure you have been doing at least 3 days a week for the past 6 months. This ensures that you have been trading in line with your strategy for a long period of time, building up experience and an understanding of how it works. If you are using an expert advisor (EA) then ensure it has been running well for at least those 6 months before moving towards a new live account.

Have you tried more than one strategy?

Some people join forex and trading, find one strategy, and then stick with it, but how do you know that this strategy that you have picked is actually the right one for you? You don’t until you have tried at least a few different ones. The demo account is the perfect place to do this. If you try one and it goes horribly wrong, at least you have not lost anything. However, if you try something new and it works wonders, there is no harm in taking this one up as your primary trading strategy. Use this demo account to experiment until you have found the strategy that is right for you. Also having experience in multiple different strategies will allow you to adapt much better to the ever-changing markets. So before you go live, ensure that you have tried at least a few different strategies, just so you will be sure that you have the right one and that you are comfortable with the one you are planning to use.

Are your winnings more than your losses?

Something that you want and need to be sure of before you go for a live account is that you are actually trading profitably, if not then at least breaking even on more occasions than not. There is absolutely no sense in going to a live account if you are consistently making losses on your demo account. The exact same thing will happen on a live account but this time you will be losing some of your real money. So ensure that you are making consistent profits, not just a single good day or week, but consistent profits over a long period of time before you decide to put any of your real money on the line.

Do you record and review your trades?

Having some form of recording of your trades, mostly through a trading journal is vital if you want to trade your real money, you should also be using this record and the information that it brings to help analyse the review of your trades. If you are not doing this then start doing it and do it for a while before you go for a live account. This is a fantastic habit to have and one that every trader should be doing. It will allow you to work out why some trades have lost and also why others have won so you can try and alter your strategy or mindset to better suit the ones that are winning. It will also give you a much better overview of the standard of trading. Try to make sure that you are doing this and benefiting from it before you go live.

Is your trading plan based around you?

What we see a lot of is people simply taking someone else’s trading plan and strategy and then simply copying it word for word and trade for trade. This is not a good way of trading and while it may bring you some short-term results. It certainly won’t keep you going long term. If you simply copy what someone else is doing, you most likely do not know exactly why they are doing what they are doing. You need to create a plan that is based on you. You can certainly use another one as a template, but you need to ensure that you get a full understanding of what you are doing and when you need to use it on a demo account for an extended period of time so you can be sure that it works and that it does actually suit you.

So do you think you are ready to go live? If you are not entirely sure yet then there is no issue at all, simply continue with a demo account until you feel ready to go live, there is no harm in spending more time on a demo than others. Remember, you will be trading your own money with any losses being your actual money gone, so ensure that you are fully prepared before you take the major step in your trading career.

Beginners Forex Education Forex Basics

What You MUST Know About Bank Accounts for FX Trading

Forex traders often find themselves with the need for more features than what is offered with traditional bank accounts, such as the need to have access to multiple currency options. Finding a sufficient bank account can be a frustratingly difficult task for medium-sized investors, especially when it comes to tax optimization. However, if you choose to work with a bank in a non-CRS jurisdiction, your tax information won’t be reported immediately to the tax authorities in other countries.

You’ll also find several other benefits, including low opening deposits and tax credits and exemptions. This type of account is especially useful to beginners that are just getting started in the forex market and it can serve as a one-size-fits-all option for those that also invest in stocks, bonds, and other financial instruments. If you still aren’t convinced, allow us to give you five great reasons to open a forex-friendly bank account today:

Low Deposit and Account Balance Requirements

Most banks ask for a fairly high deposit, but forex-friendly accounts will typically allow you to get started with a deposit of just $2,500, which is generally much lower than what is required elsewhere. Minimum balance requirements are also set at a lower bar than what you would be required to keep with another type of account, so you don’t have to worry about topping up your balance as often. Altogether, these perks take away the stress for traders that want to avoid making a large deposit or who might dip into their account balance farther than expected.

Fees that are Both Low and Transparent

Banking fees are inevitable no matter where you go, but the real issue with many banks is transparency. If you don’t want to find any unexpected charges on your bank statement, a forex friendly account is the way to go. Many of these banks offer transparent pricing, along with fees that are usually lower than the competitor’s offer.  Trust us, transparency is key when it comes to anything dealing with brokers or banks. 

Beneficial Tax Policies

If you decide to open an account with one of our associates, you can look forward to tax exemptions that would lower your income tax rate to less than 10%. You’ll also benefit from the fact that they don’t work with jurisdictions that have dividends tax or national gains tax, and they only tax nationally sourced income because there is a territorial base for their tax rate.


Most banks work with jurisdictions that are part of the CRS/AEOI, which require them to share exchange tax information with foreign tax authorities. Luckily, our associates don’t work with these jurisdictions, meaning that your privacy is protected and you can have the peace of mind that your assets and information are equally protected.     

An Account that Fits All Your Needs

Whether you’re only interested in trading forex or if you also dabble in precious metals, stocks, bonds, options, futures, and other financial instruments, a forex friendly account will give you access to everything you need with no need to open multiple accounts through different institutions. These multi-currency accounts are the most convenient option for traders that want efficient banking options. 

A Guide to Opening a Forex-Friendly Account

First, you’ll need to start by attempting to gain pre-approval from the bank. This doesn’t guarantee that you’ll be accepted, but it is the first step to the process and it improves your chances. You’ll need the following documents for pre-approval:

  • A bank form that has been filled out and signed
  • A (notarized) passport copy
  • A certified copy of your proof of residence
  • Six months’ worth of previous bank statements OR a banking reference

If the bank accepts your pre-approval, they will begin the process of reviewing your application, which typically takes around 20 days total with most banks. Don’t be alarmed if you’re asked to provide additional documents or forms during this time, as this is completely normal. You’ll also be expected to engage in a quick phone call with a banking representative to finalize the pre-approval process. Finally, if everything checks out, you’ll be all set to open your forex-friendly bank account.

Beginners Forex Education Forex Basics

Forex VIP Trading Accounts Explained

A VIP account is a type of trading account that is offered by many forex brokers. If you’ve heard of them, you might already know that these accounts are reserved for high-roller clients that can afford to make a significant investment with a broker. If you didn’t know, just check the ‘Account Types’ page with any broker and you’ll find that VIP accounts require a huge initial deposit.   

How much is a “significant” investment? Well, the answer differs depending on the broker, but one thing is for sure – a VIP account is usually the best account offered by a broker and thus requires the largest deposit they ask for. If the broker’s Premium account asks for a $25,000 deposit, you can bet that the VIP account requires double that or more to be opened. We’ve seen brokers ask for $25,000, $50,000, $100,000, and anything above, below, or in-between.

If you’re disappointed to see how much it costs to open a VIP account, don’t worry. Many brokers offer at least one or more accounts that ask for a smaller, more reasonable deposit. You should be able to find beginner-friendly accounts for $5 to $250 if you’re just starting out. 

Still, you might aspire to become a successful high-roller trader one day that can afford to open a VIP account. If you’ve had your eye on one of these exclusive accounts, there are actually several benefits you should know about that are related to opening a VIP account:

  • Brokers might place maximum balance caps on their other accounts, but VIP accounts can hold an unlimited balance. 
  • Most brokers offer special discounts to VIP account holders – oftentimes, spreads start from 0-1 pip(s) and commissions are low. The best trading conditions are often reserved for these clients alone. 
  • Additional perks are often provided to VIP clients. A dedicated account manager and one-on-one webinars with an expert are some of the perks we’ve seen, but these special offers vary widely depending on the broker.
  • Brokers tend to be more concerned about their VIP clients – it’s all in the name, after all. If you’re having an issue and need to speak to support, you can expect to hear back quickly. Your broker will want to do everything they can to keep you as a client. 
  • Some brokers provide VIP clients with expedited withdrawals and/or zero withdrawal fees. 

As you can see, VIP clients are provided with certain advantages, like lowered fees, more responsive customer support, special perks in the form of an account manager or other extra options, and the ability to hold an unlimited account balance. You also might see benefits that are exclusively offered to VIP clients, like lightning-fast withdrawals or fee-free withdrawals, even though other account holders have to wait and pay for their withdrawals. 

Don’t be discouraged if you don’t see yourself as a VIP client anytime soon. Know that most brokers offer multiple account types that can be used as steppingstones up to their very best account. Beginners can start out at the entry-level account and graduate to a better account as their balance grows, earning more benefits, and paying lower fees with each upgrade. Eventually, you could find yourself at the top with a lot of hard work and dedication. We aren’t saying that everyone can have a VIP account – but you can find yourself there one day if you invest your money and spend time educating yourself and perfecting your strategy. Also, be sure to compare brokers to make sure that you get the best trading account that your money can buy right now.

Beginners Forex Education Forex Basics

Pros and Cons of Trading with a Small Account Balance

When we talk about retailers, one of the biggest differences between them and professional traders, as well as institutional traders, is the size of the accounts they handle. This creates huge differences in the way these traders will address their situation, but at the end of the day, the math shows us that the differences between these types of accounts should not be exceeded.

The Reality

We are not trying to dissuade any reader from negotiating, but you should know that there is too big a difference between a trade of 10 million USD account and a $100 account. As information, the average retail account in the United States is located somewhere near the level of $2000, and I suspect that in other countries it is much smaller. This is because the Forex is sold as a “scheme to get rich quickly,” by layers and layers of people who have an interest in taking their money, one way or another.

But the reality is that it is true that you can create a lot of money faster in Forex markets than in other markets. This is due to leverage and the fact that markets tend to have a very long-term trend. And indeed, it is very common for a currency pair to have a trend of three years at a time. However, mixing that with leverage is both a good thing and a bad thing. Trading with a small account

The Advantages

Let’s start with the advantages of trading in a small account. The most obvious benefit of trading with a small account is that you don’t have to worry about turning the market against oneself if go in and out of it. If you are trying to close a 10,000 unit position, you will have a lot of trouble doing it at any price. However, if you are trying to exchange a position of 100 million units, it is a completely different situation. Indeed, the retail trader has considerably more flexibility when putting or removing a position.

Another advantage is that if you remove it, it should not be a crucial mistake in life. After all, the average person who is trading forex can handle being deleted from an account if it is small, but again, the biggest problem you will have will be related to your financial situation. For example, if you have a net value of $3000 at the time of trade and have an account of $1000, that could cause a problem. In this sense, the declaration of a “small account” is reduced to an individual situation.

Another great advantage of trading a small account very often is that they will have a greater amount of leverage in your Broker. In that sense, it gives you the opportunity to make more money with a small stake, but the problem is that, of course, high leverage often leads to large losses. However, again, that said, if you’re risking a few hundred dollars and making no difference to your livelihood, that risk can be advantageous.

The Disadvantages

There are a multitude of disadvantages to a small account. The most obvious one is that it will be difficult to make the rewards worthwhile. For someone who earns $100,000 a year, it won’t be exciting to win $100 at the end of the same year through trade. This comes down to just having more patience, and whether or not you know how to drive. Most of the traders I know don’t. This is why many of the small traders end up having big problems, as the lack of a significant reward makes concentration difficult. This leads to over-negotiation or over-exploitation of their position.

If your account is too small, you may not be able to determine whether the storm is a major setback or a period of time that presents much volatility. This is because your losses must be too small. Beyond that, you will most likely continue to love yourself too much, thinking about things as follows: “I just need a couple of crazy trades, then I can do trading normally after I have increased my account a little”. To say, this is bound to be counterproductive, as the emotions of seeing a big change in its profit and loss section will make you make decisions that will usually be bad for your business results. Even if you get that sudden explosion and the ability to make a massive game, it is very rare that a trader can reduce the size of his position after winning like this. Greed finally takes over, and then the broker gets all his money.

The Solution

Obviously, you’ll do much better with a bigger account. If you think this way: if you win 1% on a $10,000 account, that’s $100. That is much more sustainable and is likely to happen than trying to make a 10% on a $1000 account. So the solution is obvious: Trading with a larger account. No, I’m not kidding.

The way to get to larger account sizes is something most people don’t want to hear, taking their time. You can create your account in a gradual and responsible way while adding it along the way. Maybe I can put $100 a week into your account to fill out the balance. Finally, you can find enough commercial capital to make a difference. That’s the biggest problem most traders face in trading markets, they just don’t take the time to make it all work. After all, your retirement accounts, which are managed by professionals at large firms, seem fine for you to earn 10% a year. However, like retail traders, we expect to outperform many of the professionals who have huge advantages over us. Commercial capital is crucial, so you must first worry about preservation and then add it once you show that you are able to make a profit.

It’s probably not the word you’re looking for, but the reality is that operating with a small account is very difficult.

Forex Basics

Can You Trade Forex With Only $100?

With forex trading becoming ever more popular, more and more people are wanting to get involved, the problem is that not everyone has $10,000 to invest into their trading, so instead they are looking to open up accounts with smaller balances. Brokers are now allowing you to sign up from as low as $10 or even $1 but those balances are just too low to be considered as a profitable starting balance. So if we up things to $100, it is still highly affordable, but it may also offer slightly better profit potential. We are going to be looking at whether or not it is worth trading with a balance of just $100 and whether or not you can be profitable, as well as what it takes in order to be successful with such a low starting balance.

The question of can you trade with $100 is a simple one to answer, yes you can, you can very easily find a broker that will allow you to open up an account with just  $100 and you can very easily trade using 001 lot trade sizes. There are of course a few issues with trading with such a low balance, you are not really able to put many risk management plans in place, as you have such a small balance to begin with, it can be hard to maintain it and to survive any losses. With trading, you need to be prepared for losses, especially at the start, so we indeed consider whether you are able to survive those loose switches with a $100 balance.

So the better question to ask would be whether or not you should trade with $100 rather than can you. So we now know that you no longer need huge balances to trade on the forex markets. We will start with the usual, can you afford to lose that $100, for many that $100 is not a lot of money, but for others that $100 could be a couple of months wages, so think about your own situation, if you can afford to lose that $100 without it affecting your life, then we can move forward. We also need to lower our expectations, much like in life, in order to make money, you need money. So your expectations should be set low initially, you will potentially be making money, but with a balance of $100, the profits will be very low to begin with. So if you are expecting huge returns, you should consider not starting with just $100 as you will most likely over-leverage or over-risk your account.

Let’s imagine that we have signed up with a broker and deposited $100 into our account, how are we going to trade with this balance? There are different types of accounts, standard accounts are the normal account you see in most places, where you $10 is exactly that, $100, there are also then mini, micro, and nano accounts. This is where the broker allows you to trade with eve smaller trade sizes to the usual 0.01 lots. It magnifies our balance, so a $100 account would act like a $1,000 or $10,000 accounts as examples. For the purpose of this article and because it is the most common type of account, we will be considering a standard account, so our balance remains at $100.

Now that we are ready to trade, we are going to consider some of the things to think about in order to be successful with this account balance.


It is far harder to trade with a small account than it is with a large account, there are a lot of things that you cannot do with a small account, so we are going to have to be on point with our education. Ensure that you are up to date, you fully understand the assets that you are trading and what you are looking for, as well as your own rules being in place for when you decide to make some trades.


When you have a smaller account, leverage has a much greater effect on your account. Many brokers are now offering huge leverages on smaller accounts, as high as 500:1 or even 2000:1 which is a little excessive and we suggest not going quite that high. If you understand how leverage works, the higher the leverage is the more you can trade, however, it also means that you are able to lose your money a lot quicker. So when you have a large account, going for leverage of 500:1 may be great, but when trading on a smaller account you may want to go a little lower,t this is a way of keeping your account a little safer, preferably around 100:1 should be a good level for a $100 account.

Don’t Think About the Money

We know that you are trading to make money, but when you have a small balance, this should not be your focus, if it is then you will most likely be disappointed as it will not be increasing by a huge amount. Instead, you need to focus on your process and your trading habits, hone them and you will be set to make a lot more money once your account balance does grow. Do not rush decisions, do not rush trades, take your time, use this as a learning process, if you are able to succeed with this small account, you will be able to with a larger one too. This also includes honing your risk management plan, creating some rules for your trading, and then sticking to them.

Realistic Expectations

Do not go into it thinking that you will double your money each well, it won’t happen, instead set some realistic expectations. With a small account these need to be low, consider a couple percentage a week, bo more, the higher you set your goals the more risk that you will be putting on your account, and unfortunately at this stage of your trading career, you cannot afford to put too many risks as it is very easy to blow a smaller account.

Control Your Emotions

Emotions can have a devastating effect on a trading account. Letting them take over can cause you to risk the entire balance and many people have blown their accounts simply due to letting their emotions take over. If you are feeling greedy, overconfident, anxious, or even bored, try taking a step away, there is no harm in taking a break, your account and the markets will still be there when you get back. It is very easy to become greedy, to want that extra percent, but at extra percent that you are running for is an added risk to the account that you have not previously accounted for, so simply don’t do it, walk away and then come back with a clear mind.

Journal Your Journey

Create a trading journal for your trading account, jot down everything that you do and the trades that you make, this will give you some great insight and will allow you to see both the good things that you are doing as well as the bad, use this to develop your style and to ensure that you are staying on top of your risk management and that your account remains safe.

So we asked the question of whether or not you can trade with an account of $100. The answer is yes, you certainly can, this does not mean that you should though. It takes a lot of patience, a lot of dedication, and a lot of self-discipline in order to grow a small account. However, if you are in the situation where you can only invest that $100 and no more, then there is no reason why you cannot, simply reign in your expectations and take things one trade at a time, there is no reason why you cannot be successful with a $100 account.

Forex Money Management

The Top 5 Reasons Why Forex Traders Lose Money

It’s no secret that becoming a successful forex trader can be an uphill battle. After all, we are speaking about a field where reported numbers suggest that 70-90% of those who try fail. While the statistics can seem bleak, the truth is that anyone can profit as a forex trader, but most of those who give up do so because they are making one of these mistakes: 

Mistake #1: Not Being Prepared

One of the main benefits to opening a trading account is that it’s pretty easy, as long as you have a device with an internet connection, at least $10, and you’re 18 or older, you could open a trading account right now. However, this is also a downfall for many traders that decide to open an account before they’re truly ready. If you can’t read key indicators, don’t have a good understanding of how the market works, when to trade, how to trade, and other important concepts, then you’re going to be confused once you jump into everything. There’s a lot to learn, so be sure to educate yourself beforehand. Many traders give up because they start too soon and don’t want to put the effort into learning, but it’s important to remember that it takes time to learn to trade just like with any other job. 

Mistake #2: Not Having a Solid Plan or Strategy

Let’s assume that you’re educated enough to begin trading, so you open your trading account. What now? You have to have a plan in place that tells you what assets you’ll trade when you’ll decide to enter trades, how much you plan to invest and risk on each trade, and so on. You should also have an idea of a strategy you want to use, like scalping, day trading, swing trading, and so on. If you simply open trades without a plan, then you’re bound to lose. Fortunately, the internet is filled with free resources that can help you craft a plan and choose a strategy. Know that you might have to tweak your ideas a bit as you grow more accustomed to trading, but it’s still important to have a roadmap to follow. 

Mistake #3: Risking too Much

Some traders are in a hurry to make money and might risk as much as 10%, 20%, or more on each trade. Doing so can put you on the fast track to wiping out your trading account. Instead, you want to risk around 1-2% on each trade or calculate how much money you’re willing to risk on each individual trade. Losses are inevitable, so it’s better to stick with smaller position sizes and to risk less so that there will be less fallout if you lose. Many beginners start out risking too much and quit once their account shows a $0 balance.

Mistake #4: Being Emotional

There’s a whole host of factors that go into the way that your emotions can affect your trades. If you’ve never researched this before, all you have to do is Google “trading psychology” and you’ll find a ton of information. Understanding the ways that emotions can affect trades negatively is the first step to ensuring that this problem doesn’t affect you. If an emotion like fear or anxiety starts causing you to make bad decisions, you’ll be much more likely to realize this if you’re educated about it beforehand. Then, you can find ways to deal with these emotions rather than allowing them to continue to cause you to lose money.

Mistake #5: Trading When They Shouldn’t 

Those that are workaholics might not feel right if they go a day without trading, after all, it would seem as though you’re losing money by doing so. However, there are times when the market just isn’t right for trading, or when it should be avoided, like when big news is scheduled to be released. There’s a saying that trading less is more because of this – so it’s important to know when to avoid trading. In the end, it’s better to avoid trading on a bad day and to keep your balance the same, than to trade and lose money.

Forex Basic Strategies

How to Quickly Recover from a Blown Trading Account

Having your trading account reach a $0 balance can feel worse than a bad heartbreak. Unfortunately, this can happen to the best of us, whether you’re still beginning or considered to be more of an intermediate level trader. Some traders that blow their account give up entirely because they convince themselves that they aren’t good enough or they simply can’t bring themselves to deposit more money they might lose. However, losing your account balance doesn’t mean you should give up, as many successful traders have been there before. If you’re struggling to recover after blowing through your account balance, take a look at our tips below to keep yourself in the game.


 Accepting the fact that you blew your account can be difficult. Some traders make excuses as to why they weren’t the problem and place blame on other factors to avoid taking a blow to their ego. Others go the opposite route and impose a lot of self-blame on themselves. They might think thoughts like “I’m not good enough” or “Maybe I should just give up”. Some never trade again because of this.

Although blowing your trading account is not ideal, it is also something that happens. It’s important to understand that trading is risky, and this is something that could happen to anyone. Once you’re able to look at the problem in a healthy light, you’ll be more prepared to take steps to deal with it.  

Ask yourself What Happened

After accepting your loss, you’ll need to look into the problem to find out what actually happened. The best traders actually use the opportunity to learn from their mistakes, so you’ll want to take a detailed look at each trade you’ve taken. This step is important if you want to avoid having the same thing happen to you again.

If you were already using a trading journal to log every previous trade in detail, you can pat yourself on the back for making this step easier. If you weren’t, you’ll still need to do the best detective work you can to find the problem and come up with solutions. Maybe your trading plan is to blame, you risked too much money on each trade, or there were several different issues affecting your results. 

Practice on a Demo Account

You might not want to go back to demo trading – after all, it almost feels like a demotion. Still, you shouldn’t discount the benefits of trading on a demo account. In addition to being free, demo trading can help you work on fixing the issues that previously blew your account without having to risk any more money while doing so. If you’re hesitant to get back into real trading, this step can also help ease you back into it while increasing your confidence if you get good results. 

Open a New Trading Account

Sometimes, a fresh start is all you really need. After you accept your losses, get some practice, and work out what went wrong, you’ll be ready to deposit more money into your old account or maybe even open a new account with a new broker. Keep in mind that you could open a smaller account if you’re feeling apprehensive and you might even be able to find a better broker while doing so. Instead of feeling discouraged, think of it as a new beginning where you can get off to a better start. When trading on your new account, remember to keep a detailed log of your trades in a trading journal just in case you need to track your progress.

Forex Basics

How to Choose the Best Trading Account

There are a lot of different types of forex trading accounts to choose from. Many brokers have taken to offering multiple accounts with different conditions, rather than only providing one account. Having options to choose from can help traders to find accounts more tailored to their needs, for example, some accounts are better for those that want to deposit $100 or less, while other accounts focus on traders that are looking to make large investments. There isn’t a black and white answer about which account is best overall, as this largely comes down to one’s trading preferences. Below, we will cover everything you need to consider to choose the best account for your personal needs.

First, we will briefly provide an overview of the main types of forex accounts. Do note that some brokers may use different names, so think of this as a general idea of the accounts that are out there:

  • Micro/Mini/Cent account: These accounts can usually be opened with a small starting deposit from $1 to $100 or so. The accounts typically allow the smallest trade size of one micro lot and limit the maximum trade size. These accounts are often targeted towards beginners and can be subject to higher spreads and fees. Sometimes, these accounts place limitations on the maximum account balance they can hold. 
  • Standard/Classic account: These are the most common type of trading accounts available and can usually be opened for $5-$100, although some brokers ask for a larger deposit of around $500. Most of these accounts offer a minimum trade size of either one micro lot (0.01) or one mini lot (0.1). These accounts often offer average spreads of around 1.5 pips. 
  • Premium/Platinum account: You might see different names for these accounts that often fall between Standard and VIP levels. These accounts typically require deposits of $500 or more, oftentimes in the thousands. Spreads and commissions are usually lower than average for these account holders and some brokers offer extra perks to these members.
  • VIP account: This is the best account available. Brokers save the best perks and sometimes offer spreads starting from 0 pips with low commission costs as incentives. These accounts usually require large deposits of $5,000 to $20,000 or even more in some cases.  

Deposit Minimums

The first thing you’ll need to consider is how much you’re looking to deposit. Unfortunately, many brokers offer the best conditions to those that can afford to make a large investment. If you only want to deposit $100 or less, your options will mostly consist of an account modeled after a Micro/Cent/Mini account or a Standard/Classic account. Those that want to start with a small investment will need to compare brokers to find the best account. If you don’t like the limitations for Micro/Cent/Mini accounts, you should be able to find a broker offering Standard or Classic accounts within your price range. Those that want to make a very large deposit should look for brokers offering better perks on their higher-tier accounts. You should expect to see low spreads and other benefits on these better account types.

Transaction Costs: Spreads, Commissions, and Other Fees

The spread is the difference between the bid and ask price. In general, an average spread is about 1.5 pips on the benchmark EUR/USD pair. If you see spreads starting from 2 pips or higher for a certain account type, then you know the spreads are higher than average for that account. Starting spreads from 0 pips are the best spreads possible. 

 Commission fees can often vary widely for different accounts. Some brokers might offer lower spreads, then offset those with higher commissions. Be sure to check these prices before opening an account so that you’ll be aware of all fees. Some traders prefer accounts with higher commissions and lower spreads and vice versa. If an account doesn’t charge commissions, it is easier to keep up with the cost of trading because that cost is built into the spread. 

You also need to look at deposit/withdrawal fees. Many brokers will allow you to deposit for free, while others charge you for both deposits and withdrawals. It’s normal to see some type of fee but know that fee-free options are out there. You also don’t want to withdraw through a funding method with insane fees. Also, be aware that bank wire withdrawals often incur fees on the bank’s behalf. 

Know that the brokerage fees will cut into your profits, so it’s important to find an account with lower fees. If you settle for high spreads and commissions, then you’ll also likely pay withdrawal fees – this will severely cut into your profits or take them altogether. Know that you shouldn’t settle for ridiculous fees simply because you don’t have a large entry-level deposit. Keep looking at different brokers instead. 

Trading Platform

Available trading platforms usually depend on the broker in general, as a broker offering multiple platforms typically offers each platform to all account holders. MetaTrader 4 and MetaTrader 5 are the most popular trading platforms and are offered by most brokers. In some cases, Ctrader is another good option. If you see that the broker offers something different, it’s a good idea to do some research to ensure that the platform works well and that it isn’t too basic for your needs. 

Asset Accessibility

Some brokers offer their entire range of assets to all account holders, while others are more limiting. For example, a broker might limit their Micro account holders to a lower number of currency pairs that don’t include exotics, while their VIP account holders can trade all currency pairs along with commodities and stocks. Some brokers also focus exclusively on currency pairs while others offer cryptocurrency and more exotic assets. If you’re looking to diversify your portfolio, you should know that it is possible to find entry-level accounts that support several different assets. 


Opening the right account is as important as choosing a good broker to work with. When comparing trading accounts, you need to ask yourself these questions:

  • How much am I looking to deposit? What type of account options will this get me?
  • Does the account limit the maximum balance? If so, will this be a problem for me?
  • What are the spreads and commission fees for the account? Are they above average? 
  • Which trading platform(s) will I have access to?
  • What assets will I be able to trade? 
  • Will I have to pay to deposit/withdraw funds?

You should be able to find clear answers to all of the above questions before you ever give out any information or open an account. Comparing different brokerages is the best way to get a better idea of what your starting deposit can get you. It’s also a good idea to look for a broker that you can grow with. You might only want to invest a couple of hundred dollars right now, but you might want to invest more in the future. This is why it’s a good idea to look for a broker that you can grow with so that you can eventually move up to a better account.  


Forex Basics

How to Recover From a Blown Trading Account

The worst-case scenario for the many traders is a blown account, this is where your broker has decided to close all of your trades as the amount of margin left in your account has decreased to a level so low that the broker needs to close the account to help prevent you from going into a negative balance. This is the law of the law, you cannot lose any more and your account is now pretty much useless so the only thing left to do is to withdraw the little money that is left in it and move on, right?

For many that is the reality, they have lost all the money that they have put in, for some, that money was money that they actually needed and so are now in a situation where they are in serious financial issues, so there is no coming back. For some others it is the opposite, they will now plow back in with even more money in the hope to try and win back the money that they had lost. This is a dangerous game and those that play like this are often burnt a second or third time until they either give up or have lost everything that they had. This of course goes against everything that you would have been taught about trading and risk management, but after a blown account, emotions can take over and this sort of behaviour is a regular occurrence.

We need to remember that over 90% of traders seem to fail within the first year of their trading, so that is a lot of blow accounts. There are many reasons why someone may end up blowing their account, the lack of discipline, not following trading plans, gambling, revenge trading, and more. Even though a lot of us experience it, we need to remember that even some of the best traders in the world right now have at some point hit rock bottom and own an account. This is an indication to those in a similar situation that it is not the end of the world, there are ways to improve and to try again and to then be successful.

So we are going to be looking at some of the things that you will need to do in order to get through a blown account, things that you can do once you have a blown account, how you can get past it and then back on track to becoming a profitable and successful trader.

Accepting the Loss

The only way to really get over something bad happening, in this case, the loss of an account is to simply accept it. This is far easier for some than it is for others though. For many it is hard to accept things they like to blame the markets rather than themselves, they let the negativity sink in, they then may even begin to blame themselves, telling themselves that they are not good enough and that there is no point in continuing to trade.

What we need to do instead is to accept that these things happen, we need to have an understanding that losses happen, losses are a part of trading, every single trader in the world has experienced them and will continue to. We need to accept this, and then we need to be able to talk to ourselves, tell yourself that we are able to do better, we are able to learn from this and we are able to improve. Use this loss as a learning tool instead of something to beat ourselves up about.


So we have accepted the loss, now we need to work out how we are going to move on. For many, the best teacher is where we get something wrong. We can look back at exactly what we did and work out where we went wrong. Hopefully, you have a trading journal on the go, if you do not then make sure that you get one set up as soon as possible. We can use the trading journal to look back at our trades, why we took them when we got out of them, and more, this gives us a good insight into our trading habits as well as the individual trades that have been made.

We need to look at some specific aspects of our trading, the risk management that we are implementing is one of the major ones. Normally when an account blows it means that something within our risk management went wrong, as the entire reason it has been put in place is to prevent an account from blowing. Work out whether you were distracted when you were trading or if you actually stuck to your trading plan. These things need to be looked at and reviewed in order to ensure that you are consistent with your trading and not letting emotions or greed get the better of you, especially after a large win or loss.

Going Back to Demo

For many, this may be seen as a step back, but it shouldn’t be, it should be seen as an intermittent, a break in the live account to work out some of the kinks that we are experiencing. There is nothing wrong with going back to a demo account, think about all the best athletes in the world, they don’t only take part in competitions, they are constantly practicing and training in a non-competitive environment which to us is the demo account. There is absolutely o shame in going back to a demo account, in fact, it should be encouraged.

Every time that you make a change you need to try it out on a demo account, in a situation where the market has humbled you, they have caused you to blow an account. This does not mean that you are necessarily a bad trader, it just means that something is wrong with something that you are doing. Due to this, we need to go back to test things out again, to find what was wrong, to change something and to then work out whether the changes are effective or not. Just do not be afraid to take that step back to a demo account, we all need to do it at one point or another during our trading careers.

Open Up a New Account

So we have been practicing on a demo account, we have worked out some of the things that went wrong and we have been consistent when practicing with the changes. It is not time to open up a new account. We suggest a new account for a couple of reasons, starting fresh means that the past is not looming over you, when you look at your account history you do not see the losses and so it is easier to analyse the current trading that you are doing. It also allows you to keep that blown account separate as a reminder of why you are doing what you are doing now and that you still need to remain vigilant and careful when trading. This time, stick to your trading plan and the changes you have made, do not let your emotions get the better of you and you will see a lot of improvements.

So those are a few of the things that you can do if you have blown an account, getting back on your feet is not easy, but it is certainly possible. Learn from your mistakes, practice, and implement them without allowing the emotions of the most money to take over are key. Do this and you will be on your way to becoming far more profitable and consistent in the future.

Beginners Forex Education Forex Basics

How Much Should You Invest in Your New Trading Account?

Deciding to become a forex trader is often the first step on the path to financial success and freedom for many investors, as long as one has educated themselves and is entering the field with realistic expectations. Once you decide to get started, you’ll find that there are thousands of brokers to choose from, with new options popping up every single day. Each broker offers their own conditions and account types that have been tailored to the needs of different kinds of clients.

If you’re wondering what you absolutely HAVE to deposit to get started, the answer may surprise you. Some brokers will allow you to open an account with just $5, while others might not require a specified starting deposit at all. Do keep in mind that this will usually get you a mini, micro, or cent account, which might come with slightly higher spreads while allowing you to implement the smallest trade size, one micro lot (0.01). These accounts are usually good choices for beginners.

Other accounts might offer slightly better conditions but will require a larger deposit. The exact amount varies widely, but common asking amounts are around $100 – $500 for a standard account, $300+ for the next level account, and then deposits in the thousands for the best accounts that are offered, which are commonly named “platinum”, “diamond”, “VIP”, and so on. It is common for the VIP account to be the best account offered through the broker and for deposit requirements to be quite large, totaling around $50,000 or more. 

Now that you know about the different types of trading accounts and how much it typically costs to open one, you still need to know how much you should personally invest. This answer differs for everyone. Here are some things to consider when figuring out how much you’d like to start with:

  • What type of account would you like to open? If your heart is set on a better account type, what is the typical minimum for that account and can you afford it?
  • How much experience do you have? Beginners might want to stick with a lower amount until they get used to trading.
  • What are your profit goals? If you’re okay with very small profits at first, a small investment will suit you. On the other hand, those that want to make more money faster will need to make larger deposits. 
  • How much can you afford to invest? This money should come from extra funds, not money that you need to live off of.

The final question is probably the most important, as you should never invest money that you actually need. This rarely ends well. First and foremost, you could lose this money and you’d be left in a bad predicament. Or you might need to withdraw these funds quickly, only to find that withdrawal times are slower than expected, which could leave you in a panic. Remember that customer support might be able to process your withdrawal more quickly than usual, but your broker can’t expedite your funds in an emergency as they will be subject to bank processing times. This is why you should never deposit money that you might need back quickly. 

Once you’ve decided how much you can and want to invest, you’ll be ready to compare trading accounts so that you can choose the best one for your personal needs. Don’t feel discouraged if you have to start small, because your investment will eventually build, and you’ll be able to afford a better account type in the future. If this is a big goal for you, then you could choose a broker offering a tier-based account system where you advance to the next tier once your account reaches a certain balance. Other brokers will often allow you to transfer your funds over to another account type when you’re ready.

Forex Basics

Tips for Choosing a Forex Account Type

If you’re looking for a Forex broker, you may have noticed that there are multiple account options out there. Some brokers may stick with Standard/Classic accounts, while others may offer these in addition to Mini/Micro/Cent accounts, Premium accounts, VIP accounts, or even tier-based accounts (Silver, Gold, Platinum, etc.). The exact names may differ, but most accounts fall into one of three categories: Mini/Micro/Cent, intermediate (Standard, Silver, etc.), and VIP/Premium accounts. 

Starting Deposit

The size of your initial investment plays a huge role in the type of accounts that you will have access to. Most brokers set an initial deposit requirement for each of their account types, which could be from $5 to $100,000, or more. Here’s a quick overview of what you should expect:

  • Smaller accounts, like Mini, Micro, or Cent accounts, should require smaller deposits of around $100 or less. You should never have to pay $500 or more for one of these accounts.
  • Mid-level accounts, like Standard/Classic accounts, or possibly Silver, Gold, etc. can also offer starting deposits of $100 or less, although these accounts often require at least $100 or more to get started. This could even go towards the $500 range, or higher for tier-based accounts.
  • The best accounts offered are usually VIP or Premium and initial deposit requirements typically fall in the category of thousands of dollars, or even into the hundreds of thousands of dollars. 

Entry-Level Accounts

Mini/Micro/Cent accounts restrict the trade size to around 0.01 lot (one micro lot), which helps to control the risk factors on those accounts. The smaller trade sizes and lower starting deposits can be good for beginners, but these accounts aren’t without their faults. Most brokers don’t offer benefits to these account holders, and you can expect to see higher spreads on smaller account types. 

Mid-Level Accounts 

If you’re trading with a good broker, it is possible to find some benefits and nice spreads on a typical Standard or Classic account. Of course, any more expensive account offered by the broker will likely have more advantages, but this is a good place for novice traders to start, especially if you don’t have a ton of capital to invest. Many brokers offer deposit bonuses and other perks to these account holders. 

VIP & Premium Accounts

These accounts are the best of the best. Traders get the most benefits, best spreads, and lowest commission rates. The downside is that the deposits required on these accounts are often extremely high, placing them out of reach for many entry-level and even intermediate traders. 

Choosing the Best Account Type

Before choosing your brokerage account, be sure to take the following things into consideration:

  • Figure out how much you’d like to invest and do some comparing to see what that will get you. $100 might get you a Micro account with one brokerage, while it could get you a Standard account with better spreads through another.
  • Always check the spreads and commissions associated with each account. Average spreads fall into the 1.5 pip range. VIP and Premium accounts will often offer much lower spreads, but you’ll need to pay closer attention to smaller and mid-level accounts.
  • You will need to check the minimum and maximum trade sizes for any account you’re considering. Most Mini/Micro/Cent accounts offer a minimum trade size of 0.01 lot with lower maximum trade size. Some high-tier accounts require a minimum trade size of one lot. 
  • Check leverage options for any account you’re considering to be sure that options are suitable for your trading style. Accounts with lower deposit requirements usually offer the highest leverage options with brokers.
  • Know that some advantages shouldn’t be based on account type. For example, fee-free withdrawals are offered by many brokers, but some may only offer this to VIP account holders while forcing lower-tier account holders to pay large withdrawal fees. 
  • Remember to look at other factors of any broker you’re considering. Available funding methods, fees, educational options, and other important factors will affect your experience, regardless of how good of an account you’ve chosen.


Choosing a live account is an important decision, as it will undoubtedly affect your profits and trading opportunities. You’ll need to figure out how much you have available to invest and do some comparing to find the best brokerage and spreads possible. As you move up in your Forex career, you will likely be able to afford better account types or to advance to higher tier levels if your broker operates on a tier-based system. Once you’ve considered deposit requirements, leverage, trade sizes, spreads, commissions, and other factors, you’ll be ready to choose an account type and get started trading.

Beginners Forex Education Forex Basics

How to Open a Trading Account with Only $5

If you’ve ever compared forex brokers, you might have noticed that some companies require a large amount of money to open a trading account. Many beginners just can’t meet insanely high deposit minimums, or if they can, they would prefer to invest a smaller amount at first before jumping in headfirst. So, are you wondering if it is possible to open a trading account with only $5? The short answer is yes – but there are some important things you’ll need to know. 

First, you’ll need to find a broker that offers $0 minimum entry deposits. Some brokers might offer several account types, with one option that doesn’t require a minimum deposit. Others might offer one standard account without a deposit requirement. 

  • If the broker offers multiple account types, then the account with the $0 deposit requirement is often an entry-level account, such as a Micro, Mini, or Cent account (but not always)
  • If the broker only offers one standard account with no deposit requirement, this can be a good option that will give you the same perks as those that can afford to make larger deposits

As you can see, there are a lot of different types of brokers out there with different account setups. Each broker offers its own account type(s) and requires a specific deposit minimum for those accounts. You’re looking for options that don’t require a minimum or that set the minimum at only $5.

There are some other things you’ll need to know before choosing a broker and making a deposit. Here are some tips that can help you choose the best broker:

  • Some brokers charge very high fees on their entry-level accounts. Even though you don’t have a huge amount to start with, you should still have access to average conditions. Don’t make the mistake of thinking that better options aren’t out there. Always compare options.
  • You should deposit more if you can. While $5 is enough to get started, it won’t go very far. Maybe you want to try making that first trade, test out funding options, or feel the accomplishment of making a real investment into your future. This is all fine, just know that you’ll need to deposit more in the near future. 
  • Check for limitations on your chosen account type, as some brokers set a restrictive maximum trade size on certain entry-level accounts. You’ll want to make sure that you can deal with any restrictions. 
  • Look for a broker that offers some type of welcome or deposit bonus to get more out of your initial investment. Make sure that your small investment will also qualify for any such promotion as some brokers require the deposit to reach a certain minimum to become eligible. 

The Bottom Line

It is entirely possible to open a trading account with average or slightly better than average conditions with a $5 deposit. Eventually, you’ll need to invest more, but there’s no shame in starting small and working your way up. Know that every broker out there doesn’t offer an account with a $5 funding minimum, but there are many recognizable options that do. You’ll also want to make sure you choose the best broker possible without paying unreasonable fees and keep our other tips in mind.

Forex Risk Management

The Best Ways To Keep Your Forex Account Safe

Keeping your account safe is the number one rule when it comes to trading, there are plenty of different ways that you are able to do this. Many of which you may have come across and may seem quite obvious, some others may be a little more secret.

So let’s take a look at what sorts of things you can do to help keep your account safe.

Reducing lot sizes: One of the main ways that you can dramatically reduce the risk to your account is to reduce the trade sizes that you are trading. If you are trading at 0.05 lots then reducing down to 0.03 lots or 0.02 lots will dramatically reduce the amount of risk that there is on your account. Not only does each trade now offer less risk should the markets move against you, but when a trade hits your stop loss it will be taking out a smaller chunk of your account. It could also enable you to place additional trades without increasing your overall positions and margin being used.

Making fewer trades: Sometimes we like to put on a lot of trades, especially if the current market conditions make it easy to put some trades on, the problem is that with each additional trade that you put in, you are risking more of your account and putting more of your equity into the active markets. In order to reduce the risk, you should try to place slightly fewer trades at a time, the fewer trades the less risk that there is.

Alter your strategy: If your strategy is causing you to open a lot of trades, then either it is a high-frequency strategy that can be quite risky to an account or your entry requirements are quite loose. One way to get around this is to add in some additional or tighten up the current entry requirements. This will make each trade a lot more specific and the strategy will end up owning fewer trades at a time.

Don’t copy others: It can be easy to get dragged into the idea of copying someone else as they trade, they are doing all the hard work of trading right? So why would I bother doing all of this work when I can just use theirs? It sounds great on paper, but unfortunately in the real world, it doesn’t always work out so great. When you copy their trade, do you know why they made that trade? Probably not, in fact, you have no way of knowing if even they know why they made that trade. If things go wrong, you do not know how to correct them and so you are pretty much risking your money on something that someone else has said, not really something you should be doing.

Take breaks: This won’t directly affect the risk on your account for the individual trades that you put on, but it will help reduce the risk of you making a mistake or placing too many trades. When we become tired or stressed, our decision-making skills all seem to fly out the window. So taking regular breaks in order to relax and clear your mind is important, not only is it healthy for you but having a calmer mind means that when you come back to make some decisions on what you need to trade, it will be easier to follow your trading plan and you won’t start to take shortcuts due to frustrations that were building. SO take regular breaks, they help you in more ways than one.

So those are a few of the ways that you are able to help reduce the risk to your account, of course, there are other things that you can do. Just remember that risk management is one of the most important parts of a trading plan so being able to reduce the risk is paramount to an account remaining successful.

Forex Course

43. Steps Involved In Opening A Forex Trading Account


Now that we have enough knowledge about the Forex market, it is time to open a real Forex trading account with a broker. Note that, before opening a real trading account, it is highly recommended to open a demo account first, because this will give us an idea on how the Forex market and the brokers actually work.

Once we decide on the broker with whom we wish to open an account, the process of opening the account is pretty simple and straightforward. Typically, it doesn’t take more than five minutes to create a Forex trading account.

Step by Step procedure to open a Forex Trading Account

  1. Selecting the Account Type
  2. Registration
  3. Activation of the account

1️⃣ Selecting the Account Type

The first step to open a trading account is to choose the type of account we wish to trade-in. That is, we will be given a choice to open a trading account between a personal account and a business account. Back then, traders had to choose whether they wanted to open a standard, mini, or a micros account. But now, such a choice does not exist as brokers allow traders to trade custom lots.

Apart from Personal and Business accounts, some brokers offer ‘managed accounts’ as well. A managed account is a type of trading account where the broker places trades on behalf of their clients, that is, on behalf of the traders like you and me.

Also, Forex brokers these days have customized trading accounts in order to cater to traders with different trading experiences. For instance, Student or Classic account for amateur traders and Professional or VIP account for experienced traders.

2️⃣ Registration

This is the typical paperwork which is done by all the firms. The entire process is digitalized, of course. To register with a broker, one will have to submit a form that might vary from broker to broker. And this form is usually filled on their web page at the time of registering an account with the broker.

List of requirements to register with a Forex broker are:

  • Name
  • Address
  • Email
  • Phone number
  • Birth of date
  • County of citizenship
  • Social security number or Tax ID
  • Employment status

Apart from this, traders are answerable to a few financial questions such as Annual Income, Net worth, Trading experience & Trading motive.

Important: Before completing the registration process with the broker, make sure to know the costs related to all kinds of transactions (bank wire transfer, depositions, withdrawal, etc.), as this could sum to a significant amount of a trader’s account capital.

3️⃣ Activation of the Account

Once the registration process is successful, a trader will receive an update (by email or on the broker’s web portal), which will provide the instructions to fully complete the account activation process. This step is basically for verification. One must produce at least two IDs to get their account activated. One for the proof of residence and the other for the proof of identity.

After all these steps are fulfilled, the trader will receive the final email from the broker with the corresponding username and password. It will also provide the trader with instructions on how to add funds to their account. This completes the account verification & activation process.

Once we log in and fund our accounts, we can start trading the Forex market.

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Forex Market

What Should You Know About Funding Your Forex Trading Account?


A forex account, also known as the foreign exchange account, is used to hold and trade different currencies. When a trader opens an account with a forex broker, they will have to fund his account with his home currency, and then they get to buy or sell foreign currencies using that money. Today, opening a forex account and funding that account is a pretty seamless process. All you need to do is to choose a reliable and credible Forex broker, open an account with them, and fund it to start trading. Forex brokers provide many options to fund a trading account. Let’s look at those methods in this article.

Funding methods in forex

To attract traders, forex brokers offer a wide range of payment options for both deposits and withdrawals. They are categorized into the following methods.

Offline payments

Offline payment options involve traditional means of funding trading account which includes:

  • Local deposit
  • Western union
  • Bank wire
  • Cheque

These methods are best used when you want to trade in huge amounts of money. However, before you transfer this large amount of money, make sure that you know the broker well enough and that you trust them completely. Payment via Bank wire and other methods are relatively more expensive and take at least six days or more. The reason for this method being expensive is because it involves bank transaction fees and currency exchange services fees. These are additional costs which are levied when you make payments.

The disadvantage of using the above method is that if you fall prey to a scam, it will get hard to get your money back. The broker will provide you with the transaction ID, which is the only proof of payment.

eWallet payments

eWallet payments are getting more and more popular nowadays due to their ease of use, relatively lower transaction costs, and faster execution. In fact, most brokers offer instant deposits and withdrawals with eWallets. Some of the widely used eWallet funding methods include:

  • Neteller
  • Skrill
  • Paypal
  • CashU
  • Webmoney

Using the eWallet payment method is often better than using offline payment methods. eWallet service providers offer higher protection of trading account, which means if you want a refund of your deposit, your eWallet can get the job done for you easily. It acts as a medium between the merchant (the forex broker) and the customer (the trader). Forex brokers also offer special bonuses when you use your eWallet very frequently or make transactions with huge volume.

Debit/Credit cards

Funding your trading account using debit/credit cards is another popular way for traders to deposit instantly. However, the bank will enforce a limit on deposit and withdrawal based on the trader’s capacity. If you notice the broker is carrying out any malicious activity, you can take back all your money using a facility called ‘chargeback.’ Note that a ‘chargeback’ does not guarantee your money back. Therefore traders need to be cautious when funding their account using debit/credit cards. Even the credit card details will be exposed, of course, when using this method for transactions.

Best way to fund your trading account

After looking at different funding methods, eWallet payments turn out to be the best option for funding for the following reasons:

  • Lower transaction cost (relatively) – Deposits and withdrawals can be done almost cost-free, which are usually covered in spreads charged by the broker.
  • Safe – eWallets ensure the safety of your money, with great transparency.
  • Fast execution – Deposits and withdrawals are faster via eWallets as it is instant in most of the cases. You can also link your debit or credit card to your eWallet and use them.

This covers most of the ways through which you can fund your trading account. If you have any questions, let us know in the comments below. Cheers!