Can you get rich by trading forex?

Most traders start their forex career with hopes for getting rich, but is that truly possible? As with any type of investing there are risks of course, and the best way to get rich is to start with a large amount of capital. Forex trading can be a real struggle, and data shows that more than two-thirds of forex traders don't make money in any given year. Yet of the one-third that do make money some are indeed getting rich. If that's your hope too then be sure to safeguard your account by using stop-losses, limiting your leverage, and use a reputable forex broker like AvaTrade.

How do you start trading forex with $100?

AvaTrade offers a forex mini-account where you can start your trading journey with as little as $100. It’s an excellent way to become familiar with the markets, and to begin learning about your own trading style. You may not get rich, but you will get some valuable trading experience in live market conditions, and that can’t be replaced, even by demo trading. In addition to that you should begin to develop some profitable strategies for trading the forex markets. If you have limited funds starting out this way can be your entryway to some of the most exciting markets available.

How difficult is forex trading?

Forex trading can be extremely difficult when you’re just getting started, but as time goes by and you gain more experience it becomes easier. The early difficulties are simply the learning curve as you come to understand the jargon, how to use the trading platforms, begin studying technical and fundamental analysis, and everything else that goes along with trading forex. As time goes by many of these things become second nature, and at this point forex trading becomes much less difficult. It might never become easy, but nothing worth having is ever easy, is it?

Forex Trading With a Regulated Forex Broker

Online Forex Trading

Foreign Exchange trading, also known as Forex or FX trading, has gained enormous popularity in recent years among layman individuals due to the growth of online brokers and the technological development of online trading platforms. With high liquidity, non-stop opening hours 5 days a week, and great opportunities, it is no wonder that the forex market is the world’s most traded market with a daily trading volume of $7 trillion USD.

Open a Forex trading account at Friedberg Direct and enjoy the benefits of trading with a locally regulated broker!

Why Trade Forex with Friedberg Direct?

Trade forex with confidence – Friedberg Direct is a regulated Canadian broker.
50+ currency pairs – Trade major, minor and exotic forex pairs.
Competitive Spreads – Trade with low spreads.
Powerful Forex Platforms – Manage your trades manually in MetaTrader, both MT4 and MT5 available
Leveraged Trading – Trade with leverage across most instruments
Master your Forex trading skills – High quality educational materials & daily market analysis.
Best in class customer service – 24/5 multi-lingual live support.

What is Forex Trading?

The Basic Concept

When trading Forex, you are buying one currency by using another. Therefore, the forex trader is trading currency pairs and not each currency individually. Take for example the EURUSD, when buying the pair – it means you are buying EUR using (selling) USD. When selling the pair – it means you are buying USD using (selling) EUR.

Forex Rates

The pairing of the currencies is presented as a rate, which reflects the ratio between the values of the two currencies. For instance, the rate for buying the pair GBPUSD is 1.50514, i.e. £1 GBP = $1.50514 USD.

Forex Pairs Groups

The Forex pairs are divided into three main groups – majors, minors and exotic pairs. The main difference between the pairs is their liquidity which is a result of the trading volume of these pair. E.g., the major currency pairs are the most traded pairs and each include the USD and another currency, while the most traded minor pairs include one of the three major non-USD currencies (The Euro, the UK Pound and the Japanese Yen).

How to trade Forex with Friedberg Direct

Forex Trading Platforms

Friedberg Direct offers a selection of trading platforms, for manual trading, with unique features and tools to optimize your trading experience. Our selection caters to all traders, where you are sure to find the one which best suits you. We also offer the option to open a demo account on each platform, where you can practice trading on your platform of choice and master your trading skills, before you start trading in the real market with your own money. In addition to spot trades, our platform allows FX options trading.

Leveraged FX Trading

The ability to hold larger trading positions than what one’s own capital allows is enabled through leverage given by the broker.

The ability to leverage one’s position is a great advantage which can magnify a trader’s profits. However, one should always have in mind that losses can be magnified as well.

How to Calculate the Cost of a Forex Trading Position?

When a trader opens a position at Friedberg Direct, he is not charged any other commissions beside the spread. The spread is the difference between the buy and sell price which is counted in pips – the fourth digit after the dot. For example if the buy price of EURUSD is 1.1123 and the sell price is 1.1120, then the spread is 3 pips. The spread charged for a position opened by a trader is the spread multiplied by the size of the position.

Friedberg Direct’s clients can choose between trading forex with fixed spread versus trading with floating spreads, which are flexible and changing. Friedberg Direct offers spreads from as low as 0.8 pips.

Range of Markets

Friedberg Direct provides its traders with the ability to trade over +50 Forex pairs, including all the major currency pairs, minors and exotics.
For more information regarding leverage and spreads for all forex pairs offered by Friedberg Direct, please take a look at our trading Trading Conditions & Charges.