What is Forex Trading?
To put foreign exchange into one sentence is difficult. It is a culmination of several aspects, small and big, that add up to make one of the most lucrative fields today. The Forex market houses over $5 trillion in value and the numbers are only growing. Each country has its own currency; some have a higher value than other, some, and the opposite. Trading these currencies is what makes up Forex.
However, the process is easier said than done. Given the market volatility, and the fluctuating value of currencies, it is ever-evident that foreign exchange houses huge amounts of risks. Several strategies and mechanisms are kept in place to ensure traders don’t suffer the backlash each trade births! Once you get a good grip over the tides, currency trading can become an amply profitable venture.
What a Forex Broker Does?
With the topic of currency trading cleared, the question rises – who facilitates it, and how? Forex brokers are the bridge between traders and the markets. They equip you with trading platforms and enable you to exchange currencies efficiently. From a perspective, brokers play as a big, or even a bigger role than you, the trader! Most reputed brokers provide demo platforms to learn on before delving in live. These brokers make money through spreads and commissions.
Forex brokers buy currencies for a rate and sell it slightly higher, this is their spread income. A commission is an amount you will have to pay for each transaction made. One of the reasons brokers play such a pivotal role is due to leverages. They offer brokers leverage, by letting them borrows money, to hold higher trade positions than a trader can afford.
Advantages of Trading Forex on a Demo Account
1) Practice makes perfect. Forex demo accounts provide you with the best grounds for learning Forex prior to trading live. Before you brave the wild winds of foreign exchange, learn them!
2) Practice accounts work with virtual money. This means, there are no repercussions, and the added flexibility is tremendous! You can strategize to your heart’s content and study each trade.
3) Learning the trading platform and tools will be of humongous importance down the line. Your trading success depends on how adept you are with it. On a demo Forex account, you can see how each mechanism works fully.
Read more benefits of demo account here.
How to Get A Free Demo Account?
At WesternFX, we understand the necessities of a beginner. From Forex practice accounts to strategies, there are multiple aspects to focus on. With us by your side, you can enter trades fearlessly, knowing we have your back! Send us an email, or give us a call, our executives will explain the processes involved, in detail, and you can have a Forex demo account in no time.
Our services and solutions are priced nominally, to ensure traders have the better sum for investing, rather than expending on trade processes. Get a quote today, call us!