NEW 2 ForEx

[Sahil]

I'm keen on trading EUR/USD and/or GBP/USD on a casual basis - i.e. check on the position once/twice a day. I have not traded forex before. Need a little advise:

a) Is it feasible to trade small size on intra-day basis?

b) Is there any additional costs in leaving positions overnight?

c) What is the best online broker for small size trades, intra-day (with option to leave on for multiple days), tightest spread.

d) How are FX prices on these online brokerages determined - my understanding is FX is OTC (do different sites quote different rates or do they all refer to like CME?!)

All help appreciated. Cheers! 😱

 

[Buk]

Hi Sahil....take a look at the 'guide' at the top of this thread, lots of very good info in there!!....spreads depend on which sb/broker you choose, have a good look around...personally I use CMC for intraday/positions, good spreads on both instruments ( low as £1.00 per pip) & the fills are ok (specially on small stakes)....have a look at Daily FX.com for charts/info etc and Forexnews.com has some good stuff too...familiarise yourself with the daily/med term moves....there are good opportunities for both types of trades, just tread carefully, they do tend to 'spike'......good luck........... 😀

 

[User]

Hi Sahil, I would say paper trade for a while and familiarise yourself with some strategies and the markets. Although paper trading is far from reality, this market is dangerously volatile and can burn you out in an instance.

Having said that there are extremely good opportunities if your on the right side at the right time 😆

You could use IG index as its easy to use guaranteed stop loss online, although finspreads spread is less, IG index is extremely easy to use. From as little as 1£/point.