Online Forex Trading at AvaTrade
Forex trading is the largest financial market in the world, recording a daily turnover of over $6 trillion. As a result, the forex trading market represents a unique and highly lucrative opportunity for traders worldwide. In addition, forex trading has proven to be a great source of income for successful investors, and unlike in the past, when this incredible market was available only to a select few, forex is now easily accessible to retail investors of any experience level through AvaTrade.
AvaTrade offers a direct pathway to the forex trading market through our powerful and intuitive trading platforms. At AvaTrade, you are not only getting a forex and CFD trading account when you sign up, but also gain a partner genuinely interested in your success as an investor or trader.
In addition, as a multi-award-winning broker, we ensure that you have all the tools, services and features to trade effectively, including a huge range of FX pairs to choose from, competitive spreads, high leverage, best in class customer service and support, over 12 years of experience, cryptocurrency pairs trading and free educational resources.
Why AvaTrade is the Right Forex Broker for You?
- Global Regulation
In an industry with multiple brokerage options, regulation serves as one of the major filters for identifying trustworthy and reliable companies. AvaTrade is a globally multi-regulated broker, with regulatory licenses across five continents. Among other things, dealing with a regulated broker will guarantee you transparent pricing, safety of funds, as well as fair resolution in the unlikely event of an issue arising.
- Competitive forex trading Spreads
You are interested in trading forex to make money, and it is, therefore, only logical to monitor your trading costs to improve profitability. AvaTrade has partnered with multiple, huge liquidity providers which guarantees that you will be able to trade your favourite financial assets with competitive spreads at all times.
- Superior forex Trading Conditions
With over 12 years of serving online financial asset traders, AvaTrade has successfully created the ultimate trading environment for its clients. From restriction-free scalping and short-selling to unlimited netting and hedging, there are endless possibilities when you are trading with AvaTrade. In addition, besides forex, we also offer a wide choice of asset classes, including stocks, indices, cryptocurrencies and commodities, enabling you to diversify your trading portfolio with ease.
- Multiple forex Trading Platforms
AvaTrade offers multiple platform options that give you the convenience and flexibility you need to enhance your trading activities. From the iconic MT4 and MT5 platforms to WebTrader, AvaTradeGO and AvaOptions, every AvaTrade client can select the kind of trading experience they desire, when speculating on online financial assets.
- Numerous FOREX Trading Resources
At AvaTrade, traders have unlimited access to a comprehensive library of informative educational materials as well as handy trading tools and resources, such as the Economic Calendar as well as integrated automated trading solutions, such as DupliTrade and Zulu Trade.
- Professional Customer Service
At AvaTrade, the trader comes first, at all times. Customer service is available in different languages; and you can always stay in touch with AvaTrade via our social connections (Facebook, Twitter and YouTube) for market updates and various promotions.
Trading Forex with AvaTrade
How to Open a Real Forex Trading Account with AvaTrade?
- Simply visit the AvaTrade homepage and click on the ‘Register Now’ button located on the top right corner of the page.
- A popup window will emerge and will prompt you to fill out your registration details. This includes your first and last names as well as your email address. For an even quicker process, you can sign up using Facebook or Google account options.
- After signing up, you will receive your login credentials via email, and you will be required to verify your account. You can then deposit funds into your trading account and start trading.
How to Download MT4 for Forex Trading
You will require a trading platform to access and participate in the exciting forex trading world. Follow the steps below to download the iconic and popular MT4 trading platform:
- Click on the AvaTrade MetaTrader 4 download link here
- Run the avafx.exe file
- Enter your real account login information
- Start trading your preferred assets
How much do you need to start trading Forex with Ava?
The minimum trading capital amount required at AvaTrade is $/€/£100. Australian traders can start trading with $100 AUD as well. AvaTrade allows payments via a selection of safe and convenient payment methods including wire transfer, debit/credit cards and various eWallets.
How are Forex trading pairs divided?
Currency pairs represent the biggest and most popular financial asset group among online traders.
Forex trading pairs are divided into three main groups as follows:
- Majors These represent the most popular traded currencies in the world and boast massive liquidity as well as very low spreads. All major currency pairs feature the US dollar (USD), as either the base or counter currency. The USD is currently the world’s most widely used currency, both in circulation and reserves. Majors include pairs such as the EURUSD, GBPUSD and USDJPY.
- Minors Minors are also known as Cross Pairs, and represent currencies of major economies, excluding the US dollar. Most minor pairs include the euro (EUR), Japanese yen (JPY) or the British pound (GBP) in their exchange rate calculation. Popularly traded minors include the GBPJPY, EURJPY and EURAUD.
- Exotics Exotic currency pairs are made up of one major currency paired with the currency of an emerging economy such as South Africa. Exotics are characteristically illiquid but very volatile, and they usually feature much higher spreads. Some of the popular traded exotics include the USDZAR, EURTRY and GBPSGD.
You can trade any type of Forex trading pair you wish, but it is advisable for beginner traders to concentrate initially on major and minor pairs, while experienced traders can try out exotics.
How to Open a forex trading Position?
There are 3 main ways to open a trade position on the AvaTrade MT4 platform as follows:
- Order Window. Double-click on the asset you wish to trade (on the Market Watch tab) and an Order Window will pop up. Fill out your trade parameters such as lot size, stop loss and take profit levels, as well as order type (Market or Pending execution). You will then buy or sell the asset.
- Chart Trading. Simply right-click on your preferred asset chart window and select ‘Trading’. You can then set your preferred trading parameters.
- One-click Trading. Activate the one-click trading functionality by clicking on the ‘Tools’ tab in the main menu. The one-trade function is available under ‘Options’ in the ‘Trade’ section. You will then be able to quickly buy or sell your favourite assets with just a single click.
How to Use Leverage in forex trading?
Leverage involves borrowing a certain amount of money, and the main purpose for using leverage is so that a trader can command larger positions with less capital and increase the returns on investment. Despite the benefits, leverage is a double-edged sword. While the main reason to use leverage is to increase your capital base as well as widen your profit potential, if not used effectively, leverage can expose you to larger risks.
Consider the following to use leverage appropriately;
- Always use stop-loss orders. Stop-loss orders automatically close your losing positions at a predetermined price point. This prevents loss of an excessive amount of capital when the markets are not moving in the direction that you speculated they would.
- Select a comfortable leverage level. Choose a leverage level that you are comfortable with. The rule of thumb is to use a lower leverage level in volatile markets and a relatively higher level in less volatile markets.
How to Calculate Pips in forex trading?
In forex trading, price movement is measured in pips. Currency exchange rates usually post tiny variations, and a pip is typically the last decimal place of a currency pair’s price quote. A price quote will generally have four decimal places, but some brokers go up to five decimal places.
When trading a standard lot (100,000 units of currency), the value of one pip is fixed at $10 when the USD is the quote currency, as in the EURUSD. When the USD is the base currency (as in the USDCAD), the value of a pip is calculated by dividing $10 by the prevailing exchange rate. For instance, if the USDCAD rate is 1.2000, the value of a pip will be $8.3 ($10/1.2). When the Japanese yen (JPY) is involved, the rule is to multiply the result by 100.
The same calculation applies in other currencies, with most brokers assigning a fixed pip value for most major currencies. When a standard lot is worth $10, a mini lot (10,000 units) is worth $1, and a micro lot (1,000 units) is worth $0.1.
How to Build a Strong Forex trading Strategy
The importance of a strong forex strategy cannot be disputed. Having a strong plan is a prerequisite for success in the trading world. Here is how to build a profitable strategy:
Determine whether you will be a short term or longer-term trader, or a scalper or a trader who uses a swing strategy. This will indicate the timeframe chart you will trade with. If you are a scalper, your focus will be on shorter timeframe charts, such as 1-minute, 5-minute and even a 30-minute chart, while a long-term trader will look at longer timeframe charts such as a day or a week.
- Trade Methodology
Decide whether you will be a technical or fundamental trader. Technical analysis consists of forecasting future price behaviour based on past price action, whereas fundamental analysis involves studying how economic, social and political factors impact a financial asset’s value.
- Trading Rules
Trading rules are basically the backbone of your strategy. You will have to detail the conditions under which you will make any trading decision in the market. This includes trading hours, trade entries, trade exits, stop loss and take profit levels, indicators to use, as well as how to deal with economic news releases.
- Risk Management
Trading involves an element of risk. This means that success will be hinged on your ability to manage risks effectively. Your trading strategy should detail the amount you will be trading at any given time, your maximum drawdown, how you will manage open trades, your hedging plan, and even how to trade correlated assets in a non-risky manner. Part of risk management is also how you will make withdrawals, so that you balance between enjoying your profits and maintaining a healthy capital amount.
- Testing and Optimisation
It is important to put your developed strategy through a test to ensure that it will be a profitable one. If it is a manual strategy, you can test it with AvaTrade as we offer free, unlimited demo accounts where no monetary risk is involved. AvaTrade also supports automatic backtesting if it is an automated strategy. You can then optimise the strategy to perform at the best possible level.
Forex trading FAQs for Expert Traders
What is Auto Trading?
Auto trading is the use of computer software to perform trading functions with little human intervention. This can include software, such as copy trading, automated technical analysis or even trading robots. You can apply auto trading in forex by linking the software with your trading platform.
What is a Forex EA?
A Forex EA (Expert Advisor) is computer software that enters and exits trade positions in the market based on coded algorithms or set conditions.
What is Fundamental Analysis in fx trading?
Fundamental analysis is the study of how various underlying economic, social and political factors affect the demand and supply of a particular financial asset, and consequently its prevailing price.
What is Technical Analysis in forex trading?
Technical analysis is the forecasting of future price behaviour based on historical price patterns or movements of a particular financial asset.
How can the Economic Calendar improve my trading?
Economic news releases are a major catalyst of price movement in the Forex trading market. The Economic Calendar can help you track the release of high impact economic and political events so that you can make appropriate trading decisions at a suitable time. AvaTrade traders have unlimited access to the Economic Calendar tool.
What is Scalping in forex?
Scalping is a trading strategy that seeks to profit from small price changes in an underlying financial asset.
What is Stop Loss in forex trading?
A stop loss is an order to close your trade position at a predetermined maximum loss level. When a preset price point is achieved, your trade is automatically closed, and you can no longer incur further losses.
What is Take Profit?
Take profit is an order to close your trade position at a predetermined maximum level. When that price is achieved, the trade will be closed automatically, and your profits will be booked.
What is short-term and long-term trading?
Short-term trading refers to trading strategies in which the time duration between entering and exiting a trade is within a range of few days to a few weeks. Another form of short-term trading is day trading in which all trade positions entered during a trading day are exited the same day. With long term trading, the time duration between entering and exiting a trade is much longer than short term trading and can range from a few weeks right up to a few years.
How do I withdraw my profits from AvaTrade?
Once you are ready, you can withdraw your profits from your trading account. It is important to note that due to anti-money laundering regulations, withdrawals can only be sent via the payment method you used to fund your account. You will be required to withdraw up to 200% of your deposit amount to your credit/debit card, and only then you may withdraw by another method in your own name. For example, if you deposited £1,000 into your AvaTrade account using a credit card and you made a profit of £1,200, you will be required to withdraw the first £2,000 to the same credit card. Then the remaining funds can be withdrawn via a different method, such as wire transfer.