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How Much Do You Need to Start Trading Forex? • Benzinga

With the world of traditional finance under fire, individuals are turning to self-taught forms of income generation. You can learn to trade forex and don’t need much to get started. Learn more with Benzinga’s guide.

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With the world of traditional finance under fire, individuals are turning to self-taught forms of income generation. You can learn to trade forex and don’t need much to get started. Learn more with Benzinga’s guide.

You can trade forex with as little as $1. Will you get very far? Probably not. Even Warren Buffett needed $228 to purchase 6 shares of Cities Service, and that was in 1941.

In contrast, the Securities and Exchange Commission (SEC) requires $25,000 in your securities trading account for access to all day trading privileges. 

The global forex market is not centrally regulated. There is actually no legal minimum account deposit required for forex trading, but most brokers do have a minimum deposit policy. Forex brokers, however, can and should be regulated within a jurisdiction to make sure they engage in best practices with clients.

For instance, forex brokers based in the U.S. must generally remain in compliance with The Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). If they don’t, they can be barred from doing business in the U.S. 

Still, some online brokers like eToro have chosen other business models to operate within the U.S. and are instead registered as a Money Services Business (“MSB”) with the Financial Crimes Enforcement Network (“FinCEN”). 

This does not stop you from getting into contact with them, however, through whatever means you see fit. But many brokers based outside the U.S. will not take clients from the country. 

And if you are accessing the forex market through a foreign broker that is not locally regulated, the U.S. government will not protect you in case of fraud or theft. High-net-worth individuals with assets above $10 million may not be protected under any circumstance. Regulators often assume you have a high level of sophistication to go along with your hefty bank account.

Leverage

The U.S. also regulates the amount of leverage a forex broker can provide and limits it to 50:1 on major currency pairs and 20:1 on minor currency pairs. Major currency pairs are usually made up of currencies issued by well-developed countries and enjoy high liquidity levels like EUR/USD. 

Minor and exotic pairs typically have one or more currencies issued by developing nations and may have substantially lower liquidity than the majors. Online brokers operating outside the reach of U.S. regulators sometimes try to attract customers through extremely high leverage, some going up to 1,000:1.

The leverage ratio you are allowed to use by your online broker dictates how much money you need in your margin trading account to control a certain position. For instance, if you want to control a $500 position with 50:1 leverage, you must have at least $10 in your account ($10 x 50 = $500). 

With 1000:1 leverage, you would need only $0.50. The higher the leverage amount, the more quickly your broker will either close out your losing position or demand you pay for your losses if the trade goes against you. 

Because they can close out your position at their discretion, you may not even have the chance to ride out a swing if you have a low account balance. For this reason, you should only put funds you can comfortably afford to lose in your forex trading account. 

Why Use Leverage?

Leverage allows you to control a larger position than your account value would otherwise allow, and you can build profit or losses as if you had that larger account balance in cash. This gets around the psychological problem of boredom many low balance traders suffer from. If you only have $1 in your account, you can double it 5 times and still only have $32. (Doubling your account funds in just 1 trade is extremely hard, to say the least.)

Many traders use leverage as part of their core strategy and use market analysis to tip the risk to reward ratio in their favor. Leverage can also be used for trading account  diversification. 

Instead of having to stake the entire account on one trade, a trader can put up only a small percentage of the notional value of each forex trade. This allows a trader to operate in a substantially higher overall trading size  for the same amount of account funds as a single unleveraged transaction.

The amount of leverage you use impacts the risk you have and the amount of money you need in a forex account. Make sure you only take risks you can afford. You must also consider the other side of the coin — margin.

Margin and the Margin Call

Margin is just the other side of the leverage coin. While leverage is the multiplicative exposure you can take on a trade, margin is the minimum amount of cash you need to make that trade. 

In return for allowing you to take a leveraged position, your broker demands a minimum amount of margin to be deposited at all times in your account depending on what positions you have open. When a leveraged trade moves against you, you start losing money in your trading account in real time and at a greater rate compared to taking an unleveraged trade.

When your available margin moves below the broker’s acceptable level, you may receive a margin call. You must then either deposit the amount of money they report to you or allow a  forced closure of the trade. 

Margin calls can be quite frustrating if you are waiting for a trade to reverse itself only to have your broker close it at a huge loss. The higher your account cash balance, the more margin you have to play with, but the more money is at stake overall.  

Most online forex brokers completely avoid the margin call process by simply closing out your outstanding positions once your account margin is insufficient, so check their policies for details on how they handle that situation. 

Best Forex Brokers

Make sure you are doing business with a reputable broker. Here are some you may want to consider.

Forex Risk and Money Management

Some of the most important aspects of forex trading for beginners are risk and money management. Proper management of risk protects you as you scale up into using a larger trading account. Consider the following to manage your risk:

  • Build your account balance. Larger account balances protect you against margin calls and automatic closeouts, but you also have more to lose if your positions get underwater. If you plan on leveraged trading, you should probably either set automated stops for your positions or have extra money you can put at risk to avoid margin calls and closeouts.
  • Trade a max percentage. Risking only a set percentage of your account balance per trade is a common way to limit the amount of money you risk on each trade. If you set a 1% of account size max loss limit per trade with an account balance of $10,000, then you can risk a maximum of $100 per trade.

    At this rate, you would have to lose 100 trades in a row to wipe your account out. If you set the maximum percentage that you will allow your trades to go against you before closing it out, then you can also calculate the cash you’ll need in your account to avoid a margin call or closeout of that particular trade. Things get more complex when you have multiple positions.

  • Trade the majors. Major currencies include the U.S. dollar, the Swiss franc, the British pound, the Japanese yen and the EU’s euro. The 4 major currency pairs involving them (EUR/USD, USD/JPY, GBP/USD and USD/CHF) are generally more liquid, making large transactions easier to execute.
  • Set automated stops. You may not use full fledged trading bots, but you can use an automated stop loss to order a position closed if the market trades at a certain level. Stops do not have to be static either. The trailing stop follows exchange rate movement that favors your position and is useful for protecting profits as a trade moves positively for you.
  • Trade at high liquidity times. The forex market is open around the clock from 5 p.m. ET on Sunday to 5 p.m. ET on Friday. Lulls in activity do occur on holidays and at the beginning and end of the trading week. When less people are trading and making markets, even the forex market can experience higher than normal volatility and lower liquidity.

Forex Trading Examples

On a $100 account. If EUR/USD is currently at 1.1800/05, and you think the exchange rate will rise, you can buy €4,000 against the U.S. dollar on margin with the intent to sell that position later. The leverage ratio of this currency pair at your broker is 50 to 1, so you will only need €80 or $94.44 in your trading account to control a position of that size.

The EUR/USD exchange rate is later trading at 1.1850/55 after 2 hours. The move from the initial offer of 1.1805 to the current bid of 1.1850 was 45 pips, and your profit is (€40,000 x 0.0045) or $18.

On a $500 account. You believe that the current NZD/USD exchange rate of 0.6600/05 is too low. You have a leverage ratio for this currency pair of 50 to 1 at your broker. You want to purchase NZ$35,000 and profit from the subsequent rise in the exchange rate you expect. You will need $462.35 in your account to control this size of position.

If the NZD/USD exchange rate moves up after 2 hours to trade at 0.6645/50. The exchange rate has moved 40 pips (0.6645 – 0.6605), and your profit is (NZ$35,000 x 0.0040) or $140.

On a $1000 account. GBP/USD is trading at 1.3200/05, and you want to buy GBP35,000 because you believe the exchange rate is too low. The leverage ratio at your broker is 50 to 1 for this pair, so you will need a total of $924.35 deposited in your margin trading account. 

The GBP/USD price is later trading at 1.3225/30 after 5 hours. That is a 20 pip gain, and your final profit is (GBP35,000 x 0.0020) or $70 on the trade.

Forex Terms

Forex has its own language you should learn for a better chance of understanding your fellow traders. Here are some of the more common terms you’ll run across.

Pips

Pips are the smallest exchange rate movement in the forex market. It usually corresponds to a movement of $0.0001 in the exchange rate of most currency pairs.

Trading Lots

A lot is a standardized trading amount. A standard lot is 100,000 units of base currency at most forex brokers. You can also sometimes trade in mini lots of 10,000 base currency units and micro lots of 1,000 base currency units at online brokers. 

Stop-Loss Orders

A stop-loss order is an order that closes your trade automatically if the exchange rate hits a certain pre-specified level. You can walk away from the computer, and the order will still be executed if the stop loss level is hit. 

This protects you from taking losses larger than you had expected, although slippage is possible at many brokers. This means that your order might be executed at a worse rate than what you had initially specified. 

What Do You Need to Start Winning at Forex?

The amount of money in your forex account is less important than a winning strategy as part of your overall trading plan. If you trade profitably 100% of the time, then you could theoretically grow your account to any value you wanted given enough time. The reality is that most forex traders lose money. 

There are numerous considerations that go into making your trading business successful, and you must take them into account if you want your goal to become a reality.

If you want to trade forex more confidently, consider taking forex trading courses before committing your money to the market. Once you have the basics down, you can trade using a demo account funded  with virtual money. After this, you’ll have experience under your belt you can use to operate in a live account. 

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Online Trading platform SIRIX

best-forex-demo

SIRIX|  Online Trading platform SIRIX Review

[yasr_overall_rating]

Everyone that has been trading for some time has most likely traded on the metatrader 4 trading platform of metaquotes. This has been the standard in the industry for the last couple of years.

 

But more and more brokers Like CMSTrader and UBCFX are offering alternatives that might suite certain traders even better then the MT4 as they have a lower learning curve and are designed more intuitive.
One of these platforms is the Sirix Trading Platform.
The Sirix Trading platform is

Sirix, a fully packed trading software with numerous with numerous options and special indicators that are designed by the software company to present you with a personalized trading experience.

Positive features and benefits of the Sirix Trading Platform

Ease of Use: if you are a trader you will be able to access your Sirix trading platform and see all your trades and other information at any place and time. The Web-trader is a fully function trading platform that does not require you to do any download. This has more or less become the norm of the industry and if you for example take the Sirix Trading platform of LegacyFX you will be able to have a download desktop version, a web version and a mobile version.
these in general all have the same functionalities but of course is the mobile version a bit more limited due to the smaller screen real estate.

Indicators and Options: this platform provides build I more than 50 Indicators which for most traders is over kill but it does allow most traders to find the right indications to match their trading behavior and trading strategies.

The Charting Package that Sirix provides is easy enough to understand and gives you as a trader all the information you need, there are different time frames that in combination with the ability to display lines and annotations make this platform feel like it is designed for you.

Social Trading: Sirix has a full feature social trading module that allows you to watch the trades of others which might give you new insights and trading ideas. If you come a across a trader that is particular successful you are able to copy that traders’ trades and create a full automated copy trader,
You as the trader are still in charge and you have the option to trade with lesser or higher amount then the trader you are copying.
In order to use the social trading, you have to open an account with their social trading community.

This can only be done by using a nickname an order to protect you identity. When you are part of the community then you are part of all the brokers that offer this feature to their traders. Meaning you are able to follow a trader that is trading with 12trader while you are trading with account from UBCFX or any other broker that has Sirix.

Now I have to mention that if you look to only trade social then the Etoro Platform is still a better solution s this system is built only for social trading and they have pretty much defined the concept.

 


Sirix Crypto Trading Platform

this is the latest platform that was launched by Leverate.

it focuses , just like the name says more n the trading of cryptocurrencies.

as this company understands that this is the direction where the market is going and more and more traders are asking for trading in Bitcoin or ripple trading to just name a few they have added this feature to the Sirix Platform , this means that every broker that has the sirix trading platform is in theory able to offer trading in cryptocurrencies.

in addition they have launched also a platform that is only trading cryptocurrencies but that will be another review as i have yet to see and play with this system


Conclusion
The Software company Leverate has created a very user friendly platform with inbuilt social trading and news functionality. When they launched this platform in 2012 it was already a good platform but today it rivals the best of them easily.

The Intuitive aspect of this platform is one of the key features and makes the threshold of trading lower for newbies. There is also a fastn amount of Sirix Tutorials out there that will help even the total beginners with the Sirix Platform

Now of the traders that need bots and more indicators then there sis still nothing that beats the metatrader 4 trading platform but for many traders Sirix offers more then enough and makes the trading experience easier then with MT4.
More and more brokers are offering this alongside their other trading platform so you as a trader will come across more and more brokers that have the Sirix Trading platform in their arsenal.

These are some of the Best Broker for trading on Sirix

UBCFX
LegacyFX
12Trader
CMStrader

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Who Will Speak at Blockchain & Bitcoin Conference Stockholm?

Who Will Speak at Blockchain & Bitcoin Conference Stockholm?

Bringing DLT Specialists Together:

 

 On September 11, Sweden will host Blockchain & Bitcoin Conference Stockholm organized by Smile-Expo – international coordinator of business events.

The conference will introduce various topics regarding blockchain and will drive attention to the most topical problems of the cryptocurrency market today.

Key speakers:[yasr_overall_rating]

One of the invited experts is the Member of Swedish Parliament Mathias Sundin who is involved in the Tax Committee and the Finance Committee. The specialist has co-founded a revolutionary technological organization Warp Institute and joined financial company Goobit. At the event, the speaker will analyse the power of decentralized systems, evaluating its long-term strenghts.

Head of Digital and Innovation at Landshypotek Bank Merete Salmeling will deliver the presentation, too. She will explain how DLT can be integrated into the real estate, and what advantages it brings.

President of Blockchain Alliance Europe Tanja Bivic Plankar will join the conference as well. Being an initial coin offerings expert, she will share knowledge about ICOs, describe recent innovations in the token sale sphere and talk about the regulatory framework.

Meet the speakers at the Blockchain & Bitcoin Conference Stockholm

Regulatory and legal challenges coming with innovations will also be discussed by Dr. Guenther Dobrauz-Saldapenna – Partner & Leader PwC Legal Switzerland. The speaker is a lawyer, VC investor, and banking specialist. He provides business consultations and has already written 10 books discovering innovative processes, money and technology.

See the full list of Key speakers here

Blockchain & Bitcoin Conference Stockholm is the second crypto event in Sweden carried out by Smile-Expo. The company has already held 40 successful crypto conferences in 25 countries.

Use an opportunity to meet leading DLT specialists, ask questions and learn new topical information about the blockchain industry at first hand at the conference!

Blockchain & Bitcoin Conference Stockholm

Details of the event and registration are available on the official website of Blockchain & Bitcoin Conference Stockholm.

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Go Visit the Blockchain & Bitcoin Conference Stockholm

Go Visit the Blockchain & Bitcoin Conference Stockholm

The Blockchain & Bitcoin Conference Stockholm is a highly anticipated crypto event in Sweden.  and is being held for the second time.

after the success of the first one they look to make this event a annual one.  since the crypto industry is going more and more out of the shadows and becomes more mainstream you will find that the quality of people involved also grows.

this is clearly displayed in the extensive list of speakers at this event.

Event goals:

bringing together the international business community in order to share their experience of integrating blockchain and cryptocurrencies; discussing blockchain industry issues and finding ways to solve them; encouraging a balanced growth of the cryptocurrency market.

Conference topics: 

  • blockchain in various sectors: energy industry, real property, newsmaking etc.
  • Legal regulation of the blockchain sector
  • token models and their application
  • ICO regulation.

Speakers:

the list of world-renowned blockchain experts, including government officials, foreign investors, entrepreneurs, lawyers, and developers is impressive and should get this event the notice it deserves.

Meet the speakers at the Blockchain & Bitcoin Conference Stockholm

who should not miss this Event :

investors, business people, lawyers, startup founders, and those aiming to launch a token sale.

why should not miss this Event :

:to receive full information with case studies about the blockchain application, to discover how to comply with the legal norms in the blockchain industry, to find business partners, and to enhance your brand awareness.

Prices of the Event

Standard ticket  – 240 EUR

  • Full access to all conference sessions
  • Access to demo area
  • Сoffee breaks
  • Speed networking

Student ticket – 121 EUR

  • Full access to all conference sessions
  • Access to demo area
  • Сoffee breaks
  • Speed networking

A valid student ID should be presented at check-in. No refunds on the day of the event.

Buy Your ticket Now


Blockchain & Bitcoin Conference Stockholm is a part of the series of Blockchain World Events held in 25 countries. The organizer is Smile-Expo International Company.

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