How to start Forex trading

Forex is the short form of foreign exchange. Everyone could partake in foreign exchange. For instance, you have to exchange your currency when you are traveling from the USA to Canada or when you are traveling from Nigeria to Dubai because each of the countries uses different currencies. Other tourists and travellers also have to exchange their currencies for another, but such is not focused on making a profit.

On the other hand, Forex trading is the exchange of one currency for another to make a profit. Financial institutions such as banks and individuals engage in Forex trading for the purpose of making profits. Trading occurs in the foreign exchange market, also known as the forex market, FX, forex, or the currencies market.

Traditionally, you can hold a fiat currency to exchange for another currency when the value appreciates. Then you can convert the money in the bank or through a bureau de change to make a profit. Forex trading offers the opportunity to trade one currency against another in real time from your phone or computer. An example is trading Euro against US Dollars (EUR/USD). This technique is known as currency pairs.

Forex trading is a faster approach to profit from currency exchange, as you can become a day trader. It involves high risk as well as high return. That is because you can earn or lose even from a small margin in the exchange rate. Forex transaction is based on speculation, and it is highly volatile.

The following chart shows the fluctuation of exchange rates between Euro and USD in the past 15 minutes.

You can invest or trade in the Forex market through a broker. Compare a forex broker to a real estate broker who connects you to the seller of landed property and gives you professional advice. A forex broker gives you access to the forex market and guides you towards investing and trading.

An example of a broker is HotForex.

What is HotForex?

HotForex is a reputable broker founded in Cyprus in the year 2010. Over the years, the company has expanded to many countries and got regulated across continents. HotForex is regulated by the following authorities.

1. CySEC – Cyprus Securities and Exchange Commission
2. FCA – Financial Conduct Authority of the United Kingdom
3. DSA – Dubai Financial Services Authority
4. FSC – Financial Services Commission of the Republic of Mauritius
5. FSP – Financial Conduct Services of the Republic of South Africa
6. FSA – Seychelles Financial Services Authority

The strict regulations guarantee that traders on the platform are protected while their funds are secured.

To further strengthen the security of trader funds against errors or fraud, HotForex is a part of the Cyprus Investor Compensation Fund and the Civil Liability Insurance program, which could cater for €5,000,000. That offers quality insurance to traders and investors.

Benefits of trading with HotForex

1. HotForex provides training and demo accounts for beginners in forex trading. The demo account enables you to test buying and selling without risking your money. This type of trade is called paper trading. After the training, you can open a live account to start actual trading.
2. HotForex enables you to copy the trade of experienced traders to make trading decision. That is known as copy trading.
3. The broker is regulated across several continents, which offers high security to your funds. You can deposit funds into your Forex account without fear of losing them. Likewise, you can receive a settlement after every successful contract.
4. Knowing when to invest is crucial. It is the only way to profit from Forex trading. HotForex provides you with signal. The signal suggests the specific price and time to enter a trade on a currency pair.
5. HotForex provides daily market analysis, weekly live webinars, trading strategy, and live question and answer sessions to beginners and expert traders.
6. The platform offers opportunity for traders to trade both fiat and cryptocurrencies. Fiat currencies refer to government-issued currencies such as United State Dollar ($), Chinese Yuan (¥), Ghana Cedi (GH₵), and Nigerian Naira (₦). Cryptocurrencies are digital currencies such as Bitcoin (BTC), Ethereum (ETH), and Tether (USDT).
7. The broker has acquired all the necessary licences to enable you to trade financial instruments such as forex, stocks and cryptocurrency. You can also trade commodities like crude oil, corn, gold, and silver.
8. HotForex offers leveraged financial instruments. That enables you to trade beyond your outlay and offers you more chances to succeed in the market even when you have exceeded your expenditure.
9. The leverage that HotForex offers makes it possible to trade via CFDs. CFD (Contract for Differences) enables Forex traders to trade on margin. This means they can borrow money to increase leverage.
10. The company has acquired a license for commercial, financial, lending, borrowing, trading, service activities and the participation in other enterprises, as well as to provide brokerage, training and managed account services in currencies, commodities, indexes, CFDs, and leveraged financial instruments.

How can you start trading with HotForex?

Learning is vital before you start buying and selling in the currencies market. HotForex offers you training and a demo account where you can learn and grow before you start trading for profit.

To get started, click here to visit HotForex.