Forex Trading: Questions About Currency Trading

Ali Qamar

Updated:
Checkmark

Service for copy trading. Our Algo automatically opens and closes trades.

Checkmark

The L2T Algo provides highly profitable signals with minimal risk.

Checkmark

24/7 cryptocurrency trading. While you sleep, we trade.

Checkmark

10 minute setup with substantial advantages. The manual is provided with the purchase.

Checkmark

79% Success rate. Our outcomes will excite you.

Checkmark

Up to 70 trades per month. There are more than 5 pairs available.

Checkmark

Monthly subscriptions begin at £58.


Most Essential Currency Trading Questions Answered

Forex trading is now merely accessible to everyone. However, not every trader manages to get into the finish line profitably.

Our Forex Signals
Forex Signals – 1 Month
  • Up to 5 Signals Sent Daily
  • 76% Success Rate
  • Entry, Take Profit & Stop Loss
  • Amount to Risk Per Trade
  • Risk Reward Ratio
  • VIP Telegram Group

39£

Forex Signals – 3 Months
  • Up to 5 Signals Sent Daily
  • 76% Success Rate
  • Entry, Take Profit & Stop Loss
  • Amount to Risk Per Trade
  • Risk Reward Ratio
  • VIP Telegram Group

89£

MOST POPULAR
Forex Signals – 6 Months
  • Up to 5 Signals Sent Daily
  • 76% Success Rate
  • Entry, Take Profit & Stop Loss
  • Amount to Risk Per Trade
  • Risk Reward Ratio
  • VIP Telegram Group

129£

 

Some may have little knowledge of what exactly currency trading means or even how it’s done. A forex trading coach can assist greatly in your journey of trading-in fact; they make a tangible difference. Also, they can massively shorten the learning curve.

But do you have the right questions to ask? Here are some of the questions you can ask to take full advantage of a coach’s experience.

Sort By

4 Providers that match your filters

Payment methods

Trading platforms

Regulated by

Support

Min.Deposit

$ 1

Leverage max

1

Currency Pairs

1+

Classification

1or more

Mobile App

1or more
Recommended

Rating

Total cost

$ 0 Commission 3.5

Mobile App
10/10

Min.Deposit

$100

Spread min.

Variables pips

Leverage max

100

Currency Pairs

40

Trading platforms

Demo
Webtrader
Mt4
MT5

Funding Methods

Bank Transfer Credit Card Giropay Neteller Paypal Sepa Transfer Skrill

Regulated by

FCA

What you can trade

Forex

Indices

Actions

Cryptocurrencies

Raw Materials

Average spread

EUR/GBP

-

EUR/USD

-

EUR/JPY

0.3

EUR/CHF

0.2

GBP/USD

0.0

GBP/JPY

0.1

GBP/CHF

0.3

USD/JPY

0.0

USD/CHF

0.2

CHF/JPY

0.3

Additional Fee

Continuous rate

Variables

Conversión

Variables pips

Regulation

Yes

FCA

No

CYSEC

No

ASIC

No

CFTC

No

NFA

No

BAFIN

No

CMA

No

SCB

No

DFSA

No

CBFSAI

No

BVIFSC

No

FSCA

No

FSA

No

FFAJ

No

ADGM

No

FRSA

71% of retail investor accounts lose money when trading CFDs with this provider.

Rating

Total cost

$ 0 Commission 0

Mobile App
10/10

Min.Deposit

$100

Spread min.

- pips

Leverage max

400

Currency Pairs

50

Trading platforms

Demo
Webtrader
Mt4
MT5
Avasocial
Ava Options

Funding Methods

Bank Transfer Credit Card Neteller Skrill

Regulated by

CYSECASICCBFSAIBVIFSCFSCAFSAFFAJADGMFRSA

What you can trade

Forex

Indices

Actions

Cryptocurrencies

Raw Materials

Etfs

Average spread

EUR/GBP

1

EUR/USD

0.9

EUR/JPY

1

EUR/CHF

1

GBP/USD

1

GBP/JPY

1

GBP/CHF

1

USD/JPY

1

USD/CHF

1

CHF/JPY

1

Additional Fee

Continuous rate

-

Conversión

- pips

Regulation

No

FCA

Yes

CYSEC

Yes

ASIC

No

CFTC

No

NFA

No

BAFIN

No

CMA

No

SCB

No

DFSA

Yes

CBFSAI

Yes

BVIFSC

Yes

FSCA

Yes

FSA

Yes

FFAJ

Yes

ADGM

Yes

FRSA

71% of retail investor accounts lose money when trading CFDs with this provider.

Rating

Total cost

$ 0 Commission 6.00

Mobile App
7/10

Min.Deposit

$10

Spread min.

- pips

Leverage max

10

Currency Pairs

60

Trading platforms

Demo
Webtrader
Mt4

Funding Methods

Credit Card

What you can trade

Forex

Indices

Cryptocurrencies

Average spread

EUR/GBP

1

EUR/USD

1

EUR/JPY

1

EUR/CHF

1

GBP/USD

1

GBP/JPY

1

GBP/CHF

1

USD/JPY

1

USD/CHF

1

CHF/JPY

1

Additional Fee

Continuous rate

-

Conversión

- pips

Regulation

No

FCA

No

CYSEC

No

ASIC

No

CFTC

No

NFA

No

BAFIN

No

CMA

No

SCB

No

DFSA

No

CBFSAI

No

BVIFSC

No

FSCA

No

FSA

No

FFAJ

No

ADGM

No

FRSA

Your capital is at risk.

Rating

Total cost

$ 0 Commission 0.1

Mobile App
10/10

Min.Deposit

$50

Spread min.

- pips

Leverage max

500

Currency Pairs

40

Trading platforms

Demo
Webtrader
Mt4
STP/DMA
MT5

Funding Methods

Bank Transfer Credit Card Neteller Skrill

What you can trade

Forex

Indices

Actions

Raw Materials

Average spread

EUR/GBP

-

EUR/USD

-

EUR/JPY

-

EUR/CHF

-

GBP/USD

-

GBP/JPY

-

GBP/CHF

-

USD/JPY

-

USD/CHF

-

CHF/JPY

-

Additional Fee

Continuous rate

-

Conversión

- pips

Regulation

No

FCA

No

CYSEC

No

ASIC

No

CFTC

No

NFA

No

BAFIN

No

CMA

No

SCB

No

DFSA

No

CBFSAI

No

BVIFSC

No

FSCA

No

FSA

No

FFAJ

No

ADGM

No

FRSA

71% of retail investor accounts lose money when trading CFDs with this provider.

Why Forex Market – How Does it Compare to the Other Markets?

Currency trading takes some special place in the market. Unlike the stocks, futures, and other options, currency trading doesn’t operate on any regulated exchange. Moreover, it’s not controlled in any manner with a central governing body.

Another difference is that, with currency trading, trades are not guaranteed as there are no clearinghouses. Also, no arbitration panel for adjudicating disputes, trading is based mainly on credit agreements.

Currency trading is also more accessible with other benefits such as liquidity, leverage, low trading expenses, and global exposure. Besides, the market is the most liquid as well fluid one, and trades 24hrs a day and doesn’t (rarely) have gaps in price.

What’s a Pip?

Pip simply stands for Percentage In Point. In forex trading, a pip is basically the smallest increment. The currency in Forex is priced to the fourth decimal point, and the change in the fourth decimal point is the pip. Typically, 1 pip = 1/100 of 1%. Once you begin trading, it’ll be even easy to understand.

What is traded in the market?

At a glance, the retail forex market is merely all about being a speculative market. So, one can say at once that “nothing is traded.” One thing is that there’s no physical exchange of the currencies that takes place in the forex market- trades are all computer-based.

Currencies trade in pairs and when making a trade there’s always one long currency and then short the other. Basically, unlike the other markets, in currency trading, no physical exchange is involved, and transactions are computer entries.

What’s the Forex Commission?

Brokers are merely a normal case in other markets such as stocks, futures, and others. The broker poses like agents in transactions taking the order to the exchange and executes it according to the instructions of the customer. Later, a commission is provided to the broker by the customer.

However, in forex markets, there’re no commissions. Besides, brokers are dealers in the FX market, and they’re the ones who assume the risk serving as counterparties to an investor’s trade. Their money is generated via a bid-ask spread, and hence no commissions are offered.

What Currencies are traded in Forex?

In the forex market, most dealers trade in seven liquid currency pairs which are merely the four “major,” and they include;

  • USD/JPY (dollar/Japanese yen)
  • GBP/USD (British pound/dollar)
  • EUR/USD (euro/dollar)
  • USD/CHF (dollars/Swiss franc)

Furthermore, there’re three commodity pairs which include;

  • USD/CAD (dollar/Canadian dollar)
  • NZD/USD (New Zealand dollar/dollar)
  • AUD/USD (Australian dollar/dollar)

What’s a Currency Carry Trade?

The most popular trade in the forex market is the carry, and it’s practiced by the smallest retail speculators and the most significant hedge funds alike. Every currency across the globe has an associated interest, and that’s where carry trade is based.

With currency carry, the trader will go long on the currency that has a high-interest rate as well as finances that purchase with the currency with a low-interest rate.

 

AvaTrade - Established Broker With Commission-Free Trades

Our Rating

  • Minimum deposit of just 250 USD to get lifetime access to all the VIP channels
  • Awarded Best Global MT4 Forex Broker
  • Pay 0% on all CFD instruments
  • Thousands of CFD assets to trade
  • Leverage facilities available
  • Instantly deposit funds with a debit/credit card
71% of retail investor accounts lose money when trading CFDs with this provider.

 

Conclusion

Finally, it won’t be wrong to ask whether one can get rich in forex trading. Depending on the dedication and seriousness you put into your trading, getting rich is very much possible. However, you can’t estimate exactly how much one can earn on Forex trading.

Sometimes, the forex market can be very volatile; therefore, anything can as well happen while trading. Nevertheless, the market is now accessible more efficiently than ever before, thanks to the brokers. These questions will surely get you placed in a better position to pull your trigger into currency trading.