How to Start as a Forex Trader (7 Steps) - Mindfully Trading (2024)

Do you want to start trading Forex but you don’t know where to begin? Check out this video to find out how to start as a Forex trader!

How to Start as a Forex Trader

Please note that this article may contain affiliate links.

How to Start as a Forex Trader – Script

This video is broken down into 7 steps to becoming a Forex trader. Let’s dive right in!

1. Find a Reputable Broker

There are important points to consider when choosing a broker. Such as:

What is their software like? You want to make sure that they offer a high-quality software platform, ideally MetaTrader4.
As well as a powerful platform, you want to make sure that your broker offers excellent support.
Fast trade executions
Low-spreads.

I started as a Forex trader by signing up to my broker which is Oanda. Oanda offer both a free demo account as well as a live trading account. I have found them to be great and they are based in the UK.

2. Use a Demo Account

As mentioned above, Oanda offer a FREE demo account and I highly recommend starting in a demo. Because it would be incredibly risky and unnecessary to start off as a Forex trader using real money in a live environment.

This means starting using paper money whereby there is nothing to lose but you can use the time to develop important skills, knowledge and experience for trading. Starting in a demo allows you to build major skills for trading including;

3. Create a Trade Plan

I have a free downloadable trade plan, click here to download a copy. This is my personal trade plan for Forex and also includes a template where you can create your own trade plan.

Having a trading plan is essential if you want to take your trading seriously and if you want to become a professional trader. In addition, a trading plan gives structure to your trades. Remember that if you are not following a trading plan, then essentially you are gambling.

A trading plan can consist of; strategies, time-frames, indicators, processes, risk management and targets. It allows you to monitor your performance and review your trades which is massively important to help you to improve and grow as a Forex trader.

4. Education

Education is essential for trading. There are many key topics to research and study to become a Forex trader. These include:

Technical analysis involving; candlesticks, chart patterns, identifying trends, channels, pivots and trendlines.
Risk management; risk is everything when it comes to trading.
Trade management; calculating entries and exits.
Trading psychology; a major factor in becoming a successful Forex trader.

5. Major Currencies

When starting out trading Forex, it is important to stick to trading the major currencies, because these tend to be the most volatile, as they usually have the most volume for trading.

Major Currencies: GBP, USD, CHF, AUD, NZD, JPY, CAD & EUR.

6. Start Small

A great tip is to start small and to remember that trading is not a race, it is a marathon. It is important to take your time through each stage of your trading journey. In addition, give yourself plenty of practice in the demo. Furthermore, take your time studying and gathering vital experience trading. When you are ready to trade with real money, certainly start small and use low risk per trade during your transition to real money.

7. Be Disciplined

Finally, it is important to be disciplined. Whenever you trade in the demo, it is important to carry out your practice seriously and to treat it like real money, because it is not a game. If you treat trading like your job, then you are more likely to succeed long term.

How to Start as a Forex Trader – Conclusion

Find a reputable broker
Use a demo account
Create and follow your trade plan
Educate yourself and build your knowledge
Trade the major currency pairs
Take it slow and steady
Be disciplined and keep your focus

If you follow all of these points, then you are well on your way to becoming a consistently profitable Forex trader, and I wish you the best of luck!

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How to Start as a Forex Trader (7 Steps) - Mindfully Trading (2024)