If you’ve been wondering where you should get started in the forex market, we would like to recommend that you try working with XFR Financial Ltd. We are pointing you to this company as it is one of the oldest brokers around, but age isn’t the only reason why we are recommending it.
The company offers mini accounts of only $100. This means that you can trade even when you only have $100 in your account. The good thing about it is that, since the trades are leveraged, you can trade thousand-dollar lots. The broker currently offers 400:1 leverage. But allowing you to trade the currency markets is not the best that this broker can offer. What is offers best is the so-called CFD.
What is CFD?
Although the technical details are complicated, how it works with all the brokers and XFR Financial Ltd is actually quite simple. One unit of CFD allows you to buy an asset at a certain price. If the price of the asset goes up at the closing time set in the CFD, you win and the profits are settled in your account. However, if the price closes lower, then you lose money. CFDs are basically like binary options in that you bet on the price of an asset, hoping that it will move in your favor. You do NOT own the asset that is the subject of the CFD.
Unlike binary options, however, Contracts for Differences are not an all-or-nothing approach to trading. Even if the price ends lower, you do not lose all of your money. You only lose part of it especially if the price difference is only a few cents on the dollar.
There are people out there who think that trading CFDs and other financial instruments such as binary options (which we mentioned above) are really nothing more than glorified forms of gambling. However, when you consider that you can predict the price movement of an asset based on technical analysis of charts, it seems less like gambling and more like technical-to-the-core money-making activity. Once you hack it, though, making thousands of dollars per month becomes really easy.
How To Start Trading With XFR Financial Ltd?
In order to get started with XFR Financial Ltd, sign up for a free account. If you are new to trading, though, do NOT trade with real money right away. Instead, switch to a demo account after you have funded your live account, then practice trading.
The most important skill you can have in trading the financial markets is knowing when the price of an asset is going to move up or down by a significant number of points. You can only hone your skills if you have spent thousands of hours looking at forex charts and practicing them.
But if you want to be smart, work with a trading coach who is earning thousands and dollars per month trading the financial markets. It will definitely cost you money to have someone teach you how to trade, but trust us, the cost will pay for itself.