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Forex Basics

How to Start Trading Forex for Free

Stumbling upon an article or piece of information about forex trading can be exciting, if not mysterious at first. People ask a lot of questions regarding trading regarding issues about whether or not it is possible, if it can make you rich, or if it is even worth it. While many aspiring traders gain their own perception of what trading will be like from information on the internet, many of them never go on to open a trading account or make that first deposit. While some of these traders don’t take the step because they have decided it isn’t worth it, many others just can’t bring themselves to make that first deposit when they don’t know if trading will actually make them any money.

Maybe you’re looking into trading because you desperately need another source of income, but you’re imagining that forex trading is reserved for wealthy people that can afford to invest large sums of money. After all, how are you supposed to make money if you don’t have anything to invest in? Or you might have a few hundred dollars (or more) that you could afford to invest, but you can think of a million other things you actually need. If you invest the money into a trading account and lose it, wouldn’t you have been better off spending it on something else? Even if you have a ton of money to spare and wouldn’t really miss it, nobody wants to give away their money with nothing to show for it. 

There’s good news if you’ve found yourself facing this problem – you can actually start trading for free by opening a demo account through almost any broker. A demo account works just like a live account in that it simulates the same environment traders on live accounts are experiencing, with the one key difference being that a demo account allows you to trade with virtual currency. You can enter and exit trades just like you would on a live account and trade with the same spreads and prices offered by the broker, only you don’t have to risk anything financially. This is a great way to see what kind of results you would get if you did decide to make a deposit, and there’s no risk because you can simply abandon the demo account at any time if you decide that it isn’t for you.

If you’re eager to open an actual trading account but you still don’t have the money to invest, there are a few other options. Some brokers will actually give you a welcome bonus to open a live account with them without asking that you deposit anything. If you lose the bonus, you don’t owe anything to the broker and you don’t ever have to make a deposit. However, it can sometimes be difficult to find promotional offers that don’t require anything on the trader’s behalf. Some of these promotions might be offered from time to time, so be sure to check online often if you have trouble finding one. Another option that isn’t entirely free would be to find a broker that offers a deposit bonus so that you can get more out of the deposit you make. This type of promotion is much more common and many brokers will match what you deposit up to a certain amount. So, if you only have $100, your broker would add another $100 to your account balance, giving you more money to trade with. This would be a good option for those that don’t have a lot of money to invest.

So, if you want to start trading for free, you have a handful of options. You should start with a free demo account, which will allow you to gain practice, test out any strategy you’re planning to use, and trade without any financial risk whatsoever. When you’re ready to move on, you can find a broker that will offer a welcome bonus and allow you to open an account for free, or you could find a broker with a deposit bonus to get more out of your initial deposit. If none of these options work for you, keep in mind that many brokers will allow you to start small with a deposit of around $10 or less, which is affordable for any aspiring trader.