Last updated on November 4th, 2021 at 06:00 pm
If you’re thinking about starting to trade forex online, you’re probably wondering the easiest way to learn to trade forex as a beginner. Forex can be a great way to earn a profit but it’s not always easy to get started.
To begin trading forex, you’ll need to have a sound knowledge of the markets so that you can effectively manage your risks, make successful trades and set yourself up for a profitable future.
In this article, we’ll talk you through the different ways to learn to trade forex, as well as answering the critical question: What is the easiest way to learn forex trading as a complete beginner?
Is Forex Trading Suitable For Beginners?
Forex trading is known for being challenging. Even the most experienced of traders sometimes become perplexed with the unpredictable nature of forex trading. So, is it realistic to expect that a complete beginner could learn to trade forex online?
Learning to trade forex can be a lengthy process due to its complicated and unpredictable nature. However, there is a way to learn forex that allows you to begin trading online within just a few days. And what’s more, the risks are lower than with traditional trading.
Read on to discover how you can learn to trade forex even as a complete novice.
What Is Forex?
The word ‘forex’ is a blend of the phrase ‘foreign exchange’. This is the global marketplace for exchanging currencies against each other. In fact, you’ve probably already traded forex in the past, without even knowing it.
When you holiday abroad, you might take your currency and exchange it for another. This will be based on the exchange rate. When you get back home, you might take your remaining currency and exchange it back to your home currency. When you change money from one currency to another, you’re trading forex.
People across the globe trade forex, in every country of the world. The forex market is so vast that in 2019, it was estimated that over $5 trillion was being traded through forex every single day. This makes forex the bigger market in the world today.
How To Learn Forex Trading As A Beginner
There are a few different ways that you can learn to trade forex as a beginner. However, some methods are easier and quicker than others, whilst certain methods may take longer.
We’ve put together a list of the five most common ways to learn forex trading to help you to choose the best method for your personal circumstances. We’ve rated each of the methods according to its difficulty: 1 is the easiest method, whilst 5 is the most difficult.
Here are five ways that you can learn forex trading as a novice trader.
1. Read Up About Forex
The most common way to learn forex trading is to read up on it. There are plenty of books and online articles which explain forex trading, including how it works, how to make forex trades and how to manage your risk.
You’ll also need to start following the market closely. This will include reading financial articles and checking the overnight price action on foreign markets each morning. The more that you can learn about forex trading, the more successful you’re likely to be.
Learning forex trading yourself in this way might seem logical but it can take years to gain the knowledge required to begin trading online successfully. There’s no one to ask your questions to and you can be left feeling alone. Although this is one of the most popular ways to learn forex trading, it’s also probably the most difficult.
Difficulty rating: 5/5 (Extremely difficult)
2. Use A Forex Simulator
Another way to learn to trade forex online as a beginner is to use a forex simulator. You’ll need to have some prior knowledge of the markets but it’s a great way to learn how to place trades and manage your risk without using actual money.
There are lots of forex trading simulators out there which will allow you to test out your trading knowledge and put your skills to the test without the risks that come with actually trading.
However, using a forex simulator is trial and error. You won’t have anyone to watch to help you to learn the ropes – you’ll just have to test out different trading strategies until you find one that works.
Although using a forex simulator is a low-risk method of learning forex trading, it involves a lot of trial and error and can be time consuming. You also have the risk of eventually switching to using real money and it can be hard to know when you’re ready to make the jump and experience the emotions that come with real-world trading.
Difficulty rating: 4/5 (Quite difficult)
3. Use A Micro Forex Account
If you’re looking for a real insight into how it feels to trade your hard-earned cash, opening a micro forex account is a good way to gain real-world experience in forex trading.
A micro forex account will allow you to put a small amount of money on the line to begin trading. If you make mistakes, you’ll make small losses to give you an insight into the reality of forex trading. Although you can lose money through micro forex accounts, it’s usually only a small amount so the risks are lower than with traditional forex trading.
Using a micro forex account allows you to experience the emotions and realities of trading, but there won’t be anyone there to guide you through the process. Similar to a forex simulator, you’ll need to go through a process of trial error to find a trading strategy that works for you.
Difficulty rating: 3/5 (Average difficulty)
4. Take A Forex Course
There are many forex training courses on the market. These courses go through the basics of trading forex, explaining how the market works, how to make trades and how to manage your risk. You may listen to experienced traders who share details of their specific trading strategies that you could adopt.
However, these courses are often costly and focus mainly on the profits that they’re making by enrolling you onto the course and then selling their products or membership afterwards. Forex courses also do not give you the real-world experience of trading. They teach you the foundations of trading but you then need to work out how to apply this knowledge to online forex trading.
Taking a course in forex may seem like the easiest way to learn to trade forex but it won’t give you the applied knowledge that you need to trade forex in the real world. Real-life trading involves emotion and no amount of textbook learning can prepare you for the realities of the ever-changing forex market.
Difficulty rating: 3/5 (Average difficulty)
5. Copy Experienced Traders Through Copy Trading
Copy trading involves mimicking the trading actions of a more established trader. You simply add money into your trading account and then wait for your chosen trader to make a trade. You can use this as an opportunity to study the markets and watch what your chosen trader chooses to do.
As you learn more about forex trading, you’ll begin to understand why your chosen trader is making the decisions they are. As you gain experience, you may want to begin applying your own knowledge to your trades. When your chosen trader makes a trade, you can choose to follow or ignore their actions. If you agree with their choice, you can mimic their trade. If you disagree, you can choose to ignore it.
By carefully watching what your chosen trader does, you can quickly build up experience in forex trading whilst keeping your risks to a minimum. You’ll gain valuable knowledge and experience so that you can begin trading on your own in the future if you choose.
Copy trading is one of the easiest ways to learn forex trading as you get hands-on experience in forex trading without the high levels of risk associated with traditional trading. You can begin making a profit straight away whilst learning from an experienced trader.
Difficulty rating: 1/5 (Easy)
Learn To Trade Forex Through Copy Trading
If you’re looking for the easiest way to learn forex trading as a beginner, copy trading offers a straightforward way to get started which allows you to begin earning a profit within your first few days.
With copy trading, you can learn the ropes from an experienced trader, building up your own knowledge of forex trading without needing to study graphs, read books or take big risks. That’s why copy trading appeals to so many people across the globe.
You can choose from an automated copy trading service or a signal service. Automated trading bots will automatically make trades on your behalf when your chosen trader performs a trading action. If you prefer more control over your investments, you can also opt for a signal service which sends you an alert when your chosen trader makes a trade. You can then choose to follow or ignore the trade.
With copy trading, you can gradually increase your control over your investments as you learn from the trading strategies of established forex traders. When you’re ready, you can then begin trading forex on your own, with the knowledge that you learnt from an experienced trader.
How To Choose The Best Copy Trading Platform
Successful copy trading relies on choosing the right copy trading platform. Unfortunately there are several scam platforms out there that make big promises that they can’t deliver. You need to be sure that you’re investing your money into a genuine platform, where you can learn forex trading from the most experienced traders.
That’s where Trade Wise comes in. I’ve spent the last decade researching, testing and reviewing over 100 copy trading platforms. I’ve made my share of mistakes over the years, ploughing money into platforms which later turned out to be a scam. I’ve made the mistakes so that you don’t have to.
I’ve put together a guide to the top 3 rated copy trading services on the market today. I’m personally invested in all of these platforms as I believe that they offer a genuine investment opportunity. If you’re considering using copy trading as a way to learn how to trade forex, check out my guide.
Can I Teach Myself To Trade Forex?
It is completely possible to teach yourself to trade forex. However, forex is an unpredictable market, leaving even the most experienced of traders perplexed occasionally.
Copy trading is a great way to learn forex trading without taking on a high level of risk. You can mimic the trading actions of a more established trader until you feel confident trading forex for yourself.
How Long Does It Take To Learn Forex Trading?
Forex trading is complex and it requires an in-depth understanding of the foreign exchange market in order to be successful. You can expect to have a good understanding of forex trading within a couple years, although it can take up to a decade to become a true expert in forex.
Copy trading is a popular way to get involved with forex trading and learn from established traders without the high levels of risk typically involved with traditional forex trading.
Is Forex Trading Easy?
It’s easy to get started with forex trading but it’s not so easy to be successful. Profitable forex trading requires an in-depth understanding of the foreign exchange market which can only be gained through years of forex trading experience. It’s also an unpredictable market and even the most experienced of traders can be left confused at times.
Copy trading offers a simple way to get into forex trading which lowers your level of risk. You can mimic the trading actions of a more established trader, learning about trading strategies whilst earning a profit.
Begin Trading Forex Today With Copy Trading
If you’re looking for the easiest way to learn forex trading, copy trading is a promising method. Rather than simply learning from textbooks or a course, copy trading allows you to get hands-on experience with forex trading without committing to high levels of risk.
If you’re thinking about giving copy trading a try, don’t forget to read my guide to the top 3 copy trading services on the market today.
I’m Jon, owner of Trade Wise at https://tradewise.community/ and https://www.youtube.com/channel/UC7VmOx8DbvX4Rbrac2pPcjw
I review forex and crypto trading products and services to find the best of what’s out there for creating a passive income without becoming a full-time trader.