Author:Vishal Doshi


How To Start Your Online Trading Portfolio ?

Find suitable Brokerage :

1) Search for a broker who has worked for 10 or more years.
2) Verify your broker's regulation under an oversight body
3) United Nations :National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC).
4) United Kingdom :Financial Conduct Authority (FCA).
5) Switzerland :Swiss Federal Banking Commission (SFBC).
6) Check the range of products you selected broker covers to know his market value.
7) If you find the broker's website unprofessional, don't wait to step aside. Focus on brokers with a good reputation.

Choose between opening a personal account or a managed account :

  • A personal account is for the trader himself.
  • A managed account is for your broker.

Fill up the form :

  • Download a PDF file or ask for mail.
  • The amount you are transferring from your personal bank account into your brokerage account is your fees that will cut down on profits.

Your account is activated :

In the fourth step, your broker will send you a link in email, connect to that link to activate your account and get started.

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Learn to start trading in Forex Market

Do proper Analysis :

Fundamental Analysis :

This analysis is about reviewing country's economic reports and then making trade decisions.

Technical Analysis :

  • You can analyze by comparing currency prices in graphical presentation.
  • In technical analysis predictions of price, change is due to past events of the market.

Sentimental Analysis :

  • Sentimental Analysis simply means to observe rise or fall in the market prices of currencies.
  • Your personal instincts play a vital role.

Decide your Investment limit :

  • You can earn more by investing less money.
  • Invest only 2% share of your cash in one specific currency pair.

Types of Orders :

Market Order :

Order given to a broker to buy or sell at the existing market price is known as Market Price.

Limit Order :

When you innate your broker to buy or sell a currency at a particular rate is called a Limit Order.

Stop Order :

When you decide to purchase the currency above the current market rate to increase your profits earned or when you decide to sell the currency below the prevailing market rate to reduce your losses incurred, it is called a Stop Order.

Keep an eye on your Loss and Gain :

  • You should not get emotionally trapped.
  • Trust your knowledge.
  • You should keep yourself updated with the market fluctuations and make decisions accordingly.

Capital requirement in Forex Trading Market :

Forex trading market has a strategy that higher the amount of capital in your account, greater will be your profitability.
  • An intraday trader should have a capital of $2500 initially.
  • If you are a scalper, you should have a minimum capital of $10000.
  • A long-term trader should have a minimum capital of $20000.
  • Day traders should restrict their investment to only 1% of their single trade.
  • For example, if your trading in Forex, per day, is $50000, then you should only risk for $500.
  • You can trade with lesser capital, but with a greater risk.
  • Traders try to cover their incurred losses by taking the risk of investing their capital.
  • Hence, the newcomers, learners or beginners start trading with minimal capital.
  • Traders are having more balance in their accounts, gain more due to a higher ratio of trading, and popularly known as Effective Leverage, in the trading account.
  • Small traders with almost no experience, they reveal their account to effective leverage. As a result, their losses increase because of higher leverage.
  • Eventually, you start keeping false hopes of earning profits shortly and keep on investing your capital in relatively higher effective leverage and are trapped in the circle of danger.
  • Your strategies will fail if you fail in making correct decisions of your capital investments by effective leverage.
  • You should trade with an effective leverage of 10 to 1.
  • Keep stop loss on all trades and effective leverage stable.
  • You can invest with a lower effective leverage of 5 to 1 or even 3 to 1.
  • The accurate leverage amount is determined completely by an individual trader himself.
  • You have to take the risk of the value multiplied by the position size and the difference in prices between stop loss order and your entry price.

Capital required=(Lot Volume*Lot Size)/Leverage

Lot Size :

Only Lot amounts were used in Forex earlier. A lot is a standard size of 100000 units. Now there are nano- 100 units, micro- 1000units and mini- 10000 units; of the lot, sizes existing in the market.

Lot Volume :

Some transactions between a buyer and a seller per day are a Lot Volume. It is an important tool in technical analysis to measure the worth of a market move. The strength of a price movement depends on the volume for that time. The price movement of the market and the volume are directly proportional to each other. In Forex trading market higher the volume, more important is the price movement.


Who provides the best trade in Forex?

  • The cost paid by the trader to his broker to trade in the Forex market is called spread.
  • Spread is the deviation between the selling price and the buying price of the currency.
  • Each Forex transaction will lose by the spread amount, during the trade. Spread amount is added in the losing trade and added in the winning trade.
  • Every trader expects minimum spread possible for his Forex broker.
  • Tighter the spreads lower will be the trader's losses.
  • Tighter spreads are critical for traders who open and close in many positions per trading session.
  • Sometimes low spreads demand high deposits in your account, which proves unfavorable for the trader.
  • More low spreads are available in mini and micro sized accounts.

Following are few of many brokers who provide zero spreads in Forex from all over the world

Name of Broker Broker Ratings Commission Maximum Leverage Minimum Position Size Minimum Account Size
alpari - - 1:1000 - $1
InstaForex 7.8 $30 1:1000 0.0001 $1
Interactive Brokers - - 1:40 - $0
e-Global - - 1:500 - $20
PFD - $10 1:500 0.01 $1
ForexMart 6.4 $20 1:1000 0.01 $1
TickMill 8.1 $2 1:500 0.01 $25
IronForex 4.2 $18 1:500 0.01 0.01 $500
FxGiants $18 1:500 1:500 0.01 $500 - $250 1:3 0.01 $10
FBS - $20 1:2000 0.01 $500
GBE Brokers(ex-Sensus Capital) 4.6 $3 1:500 0.01 $1000
Key to Markets - $3.50 1:100 0.1 $10000
Think Markets(ex-Think Forex) - $0 1:400 3.3 $2000

Top 6 Forex brokers for trading in India

Name of Broker Minimum Deposit Maximum Leverage
LMFX $50 1000:1
XM $5 888:1
NetoTrade $250 400:1
eToro $50 400:1
Plus500 $100 294:1
MARKETS.COM $100 200:1

How do Bankers trade?

Stepwise guidance for trading like bankers:

Look for a hasty move first :

A candle closes before the downtrend starts :

Lower low or Higher high principle:

Price falls and rises back quickly :

Trend Lind breaks in this stage :

Before a fall, price bounces up and then breaks down :

How to earn sustainable profits when you are an amateur Forex trader?

An amateur trader can easily become professional trader by following principles of trading and by changing his method of trading and developing a trading are few steps which would help you as an amateur Forex trader to become professional:

You should try to Focus :

You should have a well-framed strategy :

You should not get overconfident :

You should not lose hope :

You should not get affected by negative results of single trade :


Don't try to earn gains fast :