«Success on Forex depends on many factors, but the first steps are extremely important. It is important to choose a reliable broker; it is important to learn the basic mechanisms of the market; and it is important to avail yourself with proper legal support. All this can be done thanks to the Traders Union, which cooperates with top brokers, provides its traders with basic and fresh analytical materials, as well as unique benefits, such as its own legal department and financial bonuses.»
The Foreign Exchange Market (also Forex market, FX, or currency market) is a decentralized global or OTC (over-the-counter) market for trading currencies.
Five Steps for Forex Success
One of the features of Forex is that private players cannot trade currency on their own. A trader works only through a broker — an intermediary company that is an official participant in foreign exchange trading in the interbank market. Therefore, the five basic steps for successful trading relate to Forex brokers. By completing these steps, a novice trader will avoid common mistakes, minimize risks, and enjoy the full range of opportunities for successful trading.
Registration with Traders Union
To build a skyscraper, you need a solid foundation. To kickstart your success in Forex correctly, it is important to take the right first step. And this step is to register on the Forex website.
Your registration with Traders Union will give you:
free teaching programs and competent consultations by experts;
legal protection, which will help in case of disputes with brokers in the future.
Traders Union is the largest association of Forex traders with hundreds of thousands of participants from all over the world.
Registration on the Traders Union website is free. There are no membership fees or other payments, and everything remains the same for a Forex trader.
Choosing a Reliable Forex Broker
After registering on the Traders Union website, the second step is to register with a competent broker. The duties of the broker are to: give the trader access to the Foreign Exchange Interbank Market, execute the trader's orders, provide traders with a trading platform on which to trade, provide information and support, offer traders premier opportunities to earn money through investment programs.
Choosing a knowledgeable and reputable broker is a critical step to becoming a successful trader and avoiding various fraudulent schemes offered by Forex “bucket shops” that do not display their traders' orders on the interbank market; and financial pyramids hiding behind investment scams.
What criteria should be considered when choosing a Forex broker?
Year of foundation.
If a brokerage company was established last year, you should not trade with it or seek its advice. It can be promising and offer favorable conditions, but the lack of experience will compromise virtually all transactions between the broker and the trader, especially if an economic crisis or other unpredictable event occurs. A reliable and experienced broker should have been continually in the market for at least five years.Domain age.
Many brokers, while actually working for only 3-5 years, may claim that their firms were founded 10-20 years ago. But to obtain a license, a broker needs an official website. Accordingly, if it entered the market 20 years ago, then the domain should be about 20 years old. Domain data may be easily checked through free services.License.
Because unlicensed Forex brokers do not provide guarantees, they are not accountable to regulating authorities or traders. Having a license indicates that the broker's work is transparent, it has a compensation fund, and the regulatory agencies constantly audit its transactions, activities, and capitalization. Consequently, to reach your Forex goals, you should choose a broker with a license.Trading conditions.
A new trader’s success requires that they must become familiar with, and later master, the concepts and tools such as: minimum deposit, trading platform, broker's commissions on trades, reading analytics and understanding signal providers, PAMM accounts, investment portfolios. Like sports or any other worthwhile activities, you must take the time to absorb the rules, regardless of how blessed you are with natural skills and exceptional acumen. Don’t just master the black letter rules, learn all the nuances, and understand how they suit you and your particular personality and strategies, both tactical and strategic. With regard to additional opportunities, the more opportunities there are, the larger and more reliable the company you plan to work with must be. But again, it does not excuse or replace an in-depth analysis of each offer under consideration.Trading instruments.
Trading instruments are another name for currency pairs, such as dollar/euro, Canadian dollar/ Swiss pound, etc. Always choose a broker that offers many currency pairs, because successful traders do not limit themselves to one or two trading instruments.Teaching Forex Basics
You don't need an education in economics to be successful in forex trading. Nevertheless, the Third Step demands that a trader must obtain at least a basic knowledge about the Forex structure and how the forex market functions before the trader launches his or her first trade.
In general, it is necessary to understand the specific terms, typical trading strategies, approaches to forecasting, methods of risk diversification, etc. None of this is difficult and can be mastered with a minimum investment of time.
Forex brokers provide their traders and other clients with a variety of basic training courses that teach the essential Forex market basics. The Traders Union website has everything that novice traders need to understand the Forex market. Also, this website regularly publishes up-to-date analytics, articles on trading strategies, and risk-averse information on investments. Traders will have no problems finding education materials.
Basic education is an important step that should not be neglected, especially since training programs are free and readily available. In just a couple of evenings, a prospective trader will learn what an asset, bit, lot, flat, timeframe, etc., is. Such knowledge will later become the foundation of their success because it will form the foundation of their strategy.
Getting payments from Traders Union
As mentioned above, additional payments may be made to a trader if she or he opens an account with a broker through a Traders Union. Below is a step-by-step review of what a novice trader will need:
Register on the traders union website by entering your email and creating a password;
Activate your account by filling in your personal data in your personal account on the traders union website;
Choose a reliable broker using the traders union rating system and open a trading account with it;
In your personal account on the traders union website, go to the "accounts" section and indicate the number of the trading account you just opened with the broker;
Wait for the confirmation of the entered data, make a deposit on the broker's website and Start trading;
Pay attention
Note that the insertion of the account number in your personal account on the Traders Union website is necessary for the trader to receive a rebate, which is a return of a part of the spread that the broker charges from his trades as a commission.
Forex Account Funding and Trading
The fourth step is when you start trading once you have opened an account with your chosen Forex broker and have learned the basic terminology and skills.
The success of a Forex trader is always based on a calmly and patiently thought out strategy. Therefore, open your initial trading account with a minimum deposit as it makes no sense to immediately risk significant amounts. Many brokers provide demo accounts that mimic the mechanics of real accounts, but without using real money. These accounts are good for basic self-training and are very useful in many other regards. Think of demo accounts as a flight simulator used to train airline and Air Force pilots. Try to make all your impulse trading and other errors for free.
Cent accounts allow you to trade in cents rather than in dollars. Practicing in a cent account is beneficial because it is not uncommon for a trader to lose large sums immediately because of impatience and because the trader is acting without a strategy. This often leads to a trader becoming disappointed because of a loss of funds which results in their leaving the Forex. Cent accounts are real accounts with the withdrawal of trades to the interbank market. Novice traders should take care to select a broker with a small minimum deposit requirement. After becoming comfortable using the real money cent account, you can graduate to a real classic dollar account.
So take your time, make a minimum deposit, and test drive your broker. Explore the website and online trading portal, the various trading instruments and tools on the real account, and test the efficacy of your first strategies. Once you gain confidence, increase your deposit amount.
Forex Tools that Help Traders Achieve Success
Good brokers strive to provide their clients with everything they need, including supplemental tools and additional bonuses, which ultimately help to increase traders’ financial performance. A review of what is available is below.
Forex Bonuses
There are three types of these bonuses.
No deposit bonus.
They do not require that you deposit any money to activate your live account. You will immediately receive from the broker a certain amount in your account which you can use to begin trading.Deposit bonus.
When replenishing your personal account, you will receive an “extra” amount as a bonus, or thank you from the broker for choosing it. The amount can be fixed or be a percentage of the amount you replenished.Promotional.
They vary widely. For example, you may receive an extra $300 into your account once you close ten lots; or you might receive a full refund for all negative trades during that day’s trading. These are used as positive incentives to keep you trading on that broker’s platform and to build your loyalty to that broker. To keep up to date on the promotional bonuses, you need to follow the news feed of your broker and to take timely advantage of your benefits or you may lose them.Contests for Traders
Forex contests usually require you to fulfill certain conditions. Being the first to close a certain number of lots; or who will be the first to earn a certain amount of money per day.
Novice traders are eligible for Forex contests, too. Brokers often arrange contests for cent accounts so that traders do not have to risk large sums. In this regard, the Traders Union is unique because it organizes contests on demo accounts. That is, traders do not risk their funds at all, but receive real pay-offs.
Analytical Forecasts
Each Forex broker has its own analysis department and experienced trade analysts. These are specialists who regularly trade in the interbank market and monitor all economic and political changes in the world. No broker will share an analyst’s personal strategy with you, but since it is beneficial for the broker that you frequently win trades, it provides basic analytics from its veteran specialists.
Most often, analytics is expressed in forecasts on quotations of trading instruments. It can be a detailed analysis of current economic realities or specific strategic calculations. This information is invaluable for a novice trader because the authors are successful professionals who know how to properly analyze the market. Novice and other traders can learn a lot from the analytics.
News Feeds
This is critical information that promotes 100% success of a Forex trader. It is impossible to develop a competent trading strategy without knowing what is happening in the world. As in any competitive environment, time is critically important on Forex, so it is important to receive and act on the latest news as quickly as possible and without delay.
Good brokers understand this very well so their news feed is constantly updated and enriched with new posts. Bankruptcies of large companies, mergers of transnational corporations, entry and exit of individual countries into interstate trade unions, and many other events affect the Forex market. Receiving critical news information promptly, and interpreting it qualitatively concerning trading is essential to a trader’s success.
Traders Union has its own news agency that curates news from the Forex market, so you can follow the news with us. We cultivate more Forex news than any other broker.
Free VPS Server
A VPS server is a virtual server that a trader can use for personal purposes. Usually, a trading terminal is installed on it to ensure uninterrupted and secure trading. That is, if the electricity in the house is cut off, the bidding will not stop. If an attacker gains access to the trader's working PC, this will not affect trading in any way and will not allow the hacker to get the trader's data, because he works from a virtual server.
A VPS server is vital if other people (like family members) are working on the PC. It also allows you to interact with the trading terminal using mobile devices. Additionally, such a server has enough power to run several terminals at once, working with multiple brokers.
In other words, a VPS server guarantees a stable connection 24/7/365, which is critical in many situations; for example, when you trade with expert advisors (EAs). Moreover, this protects personal data because all actions take place on a remote server. Using the free VPS server helps a trader achieve greater success faster.
Forex Charts
There are two approaches to forecasting on Forex (i) the analysis of external factors that can potentially affect the price of an asset; and (ii) the analysis of the movement of the asset price. In the second approach, success is determined by a graphical display of the asset’s price in real-time, which helps in making a forecast and developing strategies.
There are three types of charts: line charts, bar charts and Japanese candlestick charts. They differ only in the method of demonstrating price changes. Top brokers always provide their forex traders with charts because they understand that the success of a trading strategy depends on timely price tracking. As a rule, charts are integrated into the functionality of trading terminals.
Investing in Forex - Passive Earning Option
Novice traders must understand that trading is not the only way to make money on Forex. The Fifth Step is to become a forex investor. The main types of investments offered by Forex brokers are:
PAMM accounts
also known as Percentage Allocation Management Module or Percentage Allocation Money Management accounts. PAMM accounts allow investors to choose a trader-manager who makes trades with the participation of both his or her own capital and the capital of other investors while the trader-manager employs their knowledge and expertise of the Forex market.
LAMM accounts
Lot Allocation Management Module — differ from PAMM accounts in that the investor's funds do not automatically participate in the manager's trades. In LAMM accounts, the manager's orders are copied to the investor, and the trader executes the trades directly from their own terminal.
Trust management.
In this case, the investor transfers his funds directly to the account of another trader so that they can use them at will in trading. Trust management is carried out under a standard contract.
Copying deals (auto trading).
Automated forex trading is a hands-off, algorithm-based approach to trading. The trader receives a copied trade from another trader, and if it is successful, he pays a percentage of the profit to the signal provider. Transactions can be copied in whole or in part.
PAMM/LAMM accounts and their iterations — RAMM (Risk Allocation Management Model) and MAM (Multi-Account Manager) — are optimal in that the manager of the account also risks his own funds, which guarantees the reasonableness of his decisions. At the same time, the manager does not have access to investors' accounts, which excludes fraud.
In the case of copying transactions, the investor works from her terminal and gets more opportunities because in PAMM accounts she does not make any decisions on trading at all, as in the case of trust management. Among other things, all of these investing methods allow the trader to learn from more experienced actors. Experience is the basis of success in the Forex market.
Protection of the Forex Trader’s Rights
If you decide to become an investor, then you will need legal protection, because to be successful you need to be confident in protecting your capital.
The Traders Union Legal Department is your ideal choice. The department employs lawyers who have been specializing in the Forex market for many years. After a member of the Traders Union applies to the legal department for assistance, the lawyers send a request to the broker, analyze the response received, and take relevant actions.
If a conflict could not be resolved, and the broker's guilt is obvious, the Traders Union considers the possibility of reimbursing the trader's financial losses from its own compensation fund.
Consideration is given to whether it is wise to continue cooperating with a broker who has violated its obligations. Most likely, the Traders Union will terminate cooperation and exclude the broker from its ratings.
Thus, the Traders Union Legal Department guarantees the trader the protection of his interests where there is a conflict with the broker. No other trading union provides such legal services for free.
All described services are free once you register on our website and open an account with your selected broker as a Traders Union member.
What is the Secret of Forex Trader Success? Expert Opinion
Thomas Davies
Traders Union trader-analyst
FAQs Regarding Success in Forex
What should a novice trader look for?
The basis of success in Forex is selecting the right broker, but this is not the only key step. You need to learn the basics of the market, work with analytics, practice using demo and cent accounts, and only then proceed to live dollar trading.
What is the best way to register directly with a broker or through Traders Union?
Registration through Traders Union provides many advantages, i.e., a trader can return a part of the spread (rebate), as well as participate in contests with cash prizes. Traders Union provides its traders with free legal support and provides up-to-date analytics on the Forex market.
How profitable is it to invest in Forex?
Many professional traders make money on their Forex investments. There are many investment options on Forex: PAMM, LAMM, MAM, etc., accounts, automatic (algorithm-driven) trading, trust management, etc. Each has its own features and advantages.
How can traders provide themselves with legal protection?
In the event of a conflict with a broker, a trader can hire a lawyer, but it is expensive, and it is difficult to find a good, competent specialist in the Forex niche. It is wise to become a member of the Traders Union because it provides free qualified legal assistance and has its own compensation fund.