Forex FAQ

The following are the most frequent questions that people ask about forex.

Where can I learn forex?
You can learn forex from professional courses, or by reading books and other resource materials. Some traders are self-taught. The best way though is to study using resource materials and having a mentor who is successful at forex trading. If you want to have a first peek, you can start reading at fxprotrading!

What is the minimum amount needed to start forex trading?
There are some brokers that permit traders to open accounts with as little as $100. Brokers who allow micro-lot trading may even accept as low as $25 for account opening. The exact amount required as minimum account opening balance will depend on the broker.

Is forex trading a scam?
Forex trading is not a scam, and many of the world’s richest people (e.g. Warren Buffett and George Soros) who made their fortunes in the financial markets did so from forex trading. The reason why many people see it as scam is because of the percentage of traders who lose money in forex, mainly from inexperience, insufficient training, and poor trading techniques.

How do I make money from forex?
In order to make money from forex, the individual must open a trading account, get it verified, fund the trading account and trade correctly. Trading correctly involves making accurate predictions on the value of a currency against another, and the trader must receive proper training on methods of analysis used in making correct trade calls.

How can I tell a good broker?
A good broker must be regulated and licensed by a reputable regulatory authority, and must have a good track record. Reliability of brokers can be ascertained from online forex review sites and regulatory status of a broker can be obtained from the websites of the CFTC (US), FSA (UK), CySEC (Cyprus) ASIC (Australia) and other regulatory bodies.

What are forex robots?
Forex robots are software that are programmed according to a trading strategy or algorithm to open and close trades in the forex market automatically. They are also known as expert advisors.

Can I trade forex 24 hours a day?
The forex market is a 24-hour market, so theoretically it is possible to trade forex 24 hours of the day. In practice however, trading is best conducted when there is maximum trading activity.

What documents do I need to start trading?
You will need a government-issued ID (international passport, drivers’ license or national ID card). Some brokers may require two out of the three IDs mentioned.

Can I trade forex full-time?
Forex can be traded full-time, but due to the speculative nature of forex, the trader must be properly trained and possess all the tools for full-time trading.

How safe is my money in forex?
As long as you use a regulated broker and you trade profitably, your money is safe.

Must I open my account in US dollars?
Apart from US Dollars, some brokers allow traders to open accounts in British Pounds or Euros.

I have no computer skills. Can I trade forex?
You do not need complex computer skills to trade forex, just like it is with playing online casinos. All you need is ability to use the mouse to execute orders and navigate your broker’s trading platform.