How to trade forex online

Major improvements in forex trading have transpired over the last decade. Originally perceived as a “high-risk, high-capital market,” new technological advancements and better financial education have made it a viable, wealth-building investment vehicle for small traders.


For people who are interested in online forex trading, the Internet provides a wealth of information on the subject. But sifting through the available information may prove daunting and you need time to get acquainted with the jargons, as well as the technical indicators used for analysis.

Mark So, chief forex trainer of Businessmaker Academy, offers a simplified guide to help new and veteran traders make the most out of this investment medium with reduced risks. So gives pointers and explains how you can profit in online forex trading:

What is online forex trading?

Online forex trading is about buying or selling of currencies through the Internet. It is similar to online stock trading but instead of investing in a company’s performance through stocks, you invest in a country’s economic performance which is measured in a big way by their currency. In essence, online forex trading is about using your money to invest in money.

Unknown to most people, the forex market is the biggest financial market in the world with an average of approximately $1.9 trillion changing hands on any given day. It is where banks, investors, and speculators exchange one country’s currency with another. Although modern forex trading has been around since the early 20th century, it was not easily accessible to individuals due to the high capital requirement and cumbersome technology. It was only well after the ’90s when the computer and Internet revolution made it possible and more convenient for small investors to invest in forex.

Why should you look into online forex trading?

Open 24-hours a day, five days a week, trading opportunities are much more frequent. With online forex trading, you have the freedom to trade on your own in real time without “middlemen,” making your trade faster and more efficient.

Although there are substantial risks involved especially if you are not equipped with proper financial education and discipline, you can conservatively gain about 3 percent to 33 percent a month on your capital through online trading forex. This allows you to earn dollars even while you are in the Philippines without the hassles of day to day business operations that normally concern many entrepreneurs and corporate executives.

What do you need to start trading forex online?

Entering the forex market no longer requires substantial capital but you do need practical education to know how to do it. Today, many online brokerage firms offer a forex “mini” and even “micro” accounts with very low investment requirement. This means that instead of the $10,000 capital requirement of some local brokers, you can now trade with a capital of less than $500. You will also need a computer and Internet access to trade forex online.

Is online forex trading risky?

Online forex trading carries as substantial level of risk and may not be suitable for all investors. Before deciding to invest in foreign exchange, you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could get high returns on your trade but you could also sustain a loss of some or all of your initial investment. Therefore you should not invest money that you cannot afford to lose.

Like in many investment instruments, your best protection is financial education. There are effective tools and techniques that you can use to gain and secure profits, as well as safeguard your investment. Take the time to learn about these by researching, attending seminars, getting financial advice from experienced traders or consultants.

Where can I learn more about forex trading?

There is a wealth of information online and there are also book available on the topic. In the Philippines, Businessmaker Academy offers several courses for online forex trading featured in their fortune forex seminar series.

These seminars will be held at 1503A West Tower, Philippine Stock Exchange-Ortigas, Pasig. Pre-enrollment is required. For more information, call 687-4445, 687-4645, 687-3416 or log on to www.businessmaker-academy.com