Forex Trading For Dummies – Best Book for Beginners

Best Forex Brokers For Beginners

1

9.4/10

Go to broker

Your capital is at risk.

Minimum deposit:

$100

Deposit Bonus:

0%

Regulation:

FCA, CySEC, MAS, ASIC, FMA, FSA (Seychelles)

Review

Plus500 is an international fintech holding that offers CFD and options trading worldwide through its network of branches, as well as futures trading in the U.S. The company was established in 2008 in the Israel. It is regulated by the FCA, as well as by 9 financial supervisory authorities in other countries, such as CySEC (Cyprus), ASIC (Australia), MAS (Singapore), FSCA (South Africa), among others. Plus500 is listed on the London Stock Exchange (ticker: PLUS) and is part of the companies that make up the FTSE 250 stock index. Plus500 is a reliable intermediary for accessing financial markets, used by over 25 million traders worldwide.

Pros/Cons

•Multi-regulation — licensed in 10 countries;

•Wide range of trading instruments — over 2800;

•Highly functional trading platforms — browser and mobile versions;

•Transparent pricing model — Spreads and Additional fees;

•Automatic adjustment of trading conditions to meet regulatory requirements;

•Provision of educational content, free analytics, and demo accounts;

•Customizable trading alerts — both on the platform and through external communication channels.

•Lack of Micro or Cent-type accounts in its account lineup, which allow trading with minimal risks and investments;

•The Plus500 platform does not support automated trading;

•Some popular trader strategies are prohibited.

Study Review

2

9.2/10

Go to broker

Your capital is at risk.
Your capital is at risk.

Minimum deposit:

$0

Deposit Bonus:

0%

Regulation:

ASIC, FCA, DFSA, BaFin, CMA, SCB, CySec

Review

Pepperstone (Pepperstone.com) was founded in 2010 in Melbourne, Australia, by professional traders who were not satisfied with the quality of services provided by most brokers. The founders decided to avoid many of the disadvantages of competitors, including high commissions, delayed execution of orders, etc. The founders therefore focused on improving the technical component. The company has set itself the goal of changing the “rules of the game” and setting the bar high for online trading.
Today, Pepperstone offers clients all over the world some of the best technological solutions and favorable trading conditions. The company also provides professional tools that help traders not only master the fine art of trading, but also significantly increase trading efficiencies. In addition, Pepperstone’s platform is scrutinized by seven regulatory authorities, including ASIC (Australian Securities and Investments Commission, AFSL No.414530), FCA (UK Financial Conduct Authority, 684312), DFSA (F004356), BaFin (151148), CMA, SCB (SIA-F217), and CySec (388/20). Moreover, with Pepperstone, clients' assets are maintained in aggregated accounts with several major, global banking institutions. These facts confirm the reliability of the company and guarantee the safety of the client's capital.

Pros/Cons

•Attractive trading conditions;

•Fast order execution - 30 ms on average;

•1,200+ trading instruments;

•Low fees; and

•No inactivity fee.

•Support service works only 24/7;

•No cent account;

•Not available to US clients;

•Limited passive trading opportunities;

•Limited analytical materials available on the site. The only way to resolve this issue is to connect to trading signals;

•No news section; and

•Demo accounts can only trade for free for 60 days.

Study Review

What You Should Know About Forex Trading

The Forex market is the largest and most liquid market, offering investors tried and tested options to grow their wealth. Since forex revolves around currencies, there are many currency pairs for you to trade.

Over the years, the forex market turnover has gained tremendous growth. The International Bank for Settlements reported an average daily traded volume of $6.6 trillion in April 2019. With new entrants into the market every waking hour, it is no doubt the market will continue to grow.

Stories of fortune and misery flood the market. The currency market has made some life-changing cash for many traders. However, success is not overnight and not dependent on sheer luck. From novice to hands-on experienced forex traders, risks are always lurking. However, investors can get colossal returns on investments (ROI) with the best advice and ever-evolving strategies.

Lessons in Trading Forex for Dummies Course

As previously stated, the authors organize the book’s contents into five principal sections. Each section has chapters that further pan down to the nitty-gritty of the main idea.

Introduction

Brooks and Dolan set the tone for investing by brushing over the book's essence. In the introduction section, you will understand the icons in the book, foolish assumptions, and how to proceed after reading the book. The introduction, in essence, is a quick preview of what to expect in the text.

Getting Started with Currency Trading

Getting started with currency trading introduces you to the currency market. The section centers around the two tiers of forex trading and fundamentals affecting the currency fluctuations. Chapters in the first part are:

Currency trading is more than hitting sell or buy on the three-lettered tickers. The book will impart the fundamentals that drive the market among other complementary influences such as news and social media sentiments. Moreover, you will gain how other markets compare and influence the forex market.

An in-depth analysis of the mechanics of forex transactions confers valuable information to calculate profits and losses using pips. The text explains that bids, offers, spreads, and margin trading are also other basics. Subsequent chapters broach the contents of the first section with a deeper approach.

Driving Forces behind Currencies

Section two of Currency Trading for Dummies delves into the drivers of the FX market. You will learn that economic data, complementary data, and geopolitical events affect the market. Financial data from banks is the fundamental driver of the market. The chapter also focuses on putting the market information into a trading perspective.

Interbank currency trades between different economic zones dictate the interest rates of currencies. Interest rates are functional parts of financial data that investors need to understand. The text does exemplary work to understand the bigger picture in trading the FX market.

Towards the end, the authors identify the minor and major currency pairs. There are actionable strategies for trading EUR/USD, USD/JPY, and USD/AUD pairs. Minor pairs are the "stocky" and "Nokkie," among other Scandinavian-based currencies.

Section two of the text analyses what makes currencies fluctuate and briefly introduces cross-trading currency pairs. The section builds the framework for the actual buying and selling of currencies.

Developing a Trading Plan

Finding the right trading style needs an understanding of technical analysis. The section focuses on candlesticks, trend lines, and how to manage risk using TA. You will also learn why the right trading broker is as important as a trading strategy. The actual forex business begins here.

Executing a Trading Plan

After developing a trading plan, you will use the different strategies to average into positions and have exit strategies. You'll learn how to manage the trade as prices fluctuate. Finally, calculate your profits and determine which currency pair is next.

The Part of Tens

The part of tens is everything of the ten best things to know in forex. The ten best risk management rules and trading strategies are some notable mentions. If you are an experienced FX investor, you'll find The Part of Tens very informative.