Forex

Forex Trading online

Online Forex Trading at AvaTrade

Forex trading is the largest financial market in the world, recording a daily turnover of somewhere between $5- $6 trillion. The point is, it’s a large market. So large in fact that it eclipses the stock market. That’s because now almost anyone can trade Forex from home, from work or even on holiday with few limitations. Long gone are the days that online trading was reserved merely for institutions and high net worth individuals. Forex trading is appealing because it can represent a rewarding, and often exciting opportunity for the retail forex trader, like you, no matter what your level of knowledge or experience. Remember though, like all good things, it comes with risks too – only ever trade what you can afford to lose.

Here at AvaTrade, we offer you a direct gateway to the Forex trading market via our powerful and intuitive trading platforms. You can open a free CFD trading account with us by simply signing up. Our goal is to form long-lasting relationships with our clients, and it is for that reason that we back them up with educational resources, to help improve their performance.

In addition, as a multi-award-winning broker, we ensure that you have all the features and tools you need to trade effectively. This includes a wide range of FX pairs to choose from, competitive spreads, high leverage, personal customer service and tools to help you manage your risk, like our ground-breaking AvaProtect™.

Open an FX Trading Account with AvaTrade and enjoy the benefits of an internationally regulated broker!

Why AvaTrade is the Right Forex Broker for You?

  • Global Regulation
    Working with a regulated broker is a necessity in today’s economic climate. AvaTrade is one of the most highly regulated online brokers in the market, with regulation across 7 jurisdictions and 6 continents. 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 trade Forex with the goal of hopefully making profit, bearing in mind the risks that are natural to trading. It is, therefore, only logical to monitor your trading costs to improve your profitability. AvaTrade has partnered with multiple, Tier-1 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 many 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 trade with AvaTrade. Besides Forex, we also offer a wide choice of asset classes, including stocks, indices, cryptocurrencies and commodities as CFDs, enabling you to diversify your trading portfolio with ease.
  • Multiple forex Trading Platforms
    AvaTrade offers multiple platforms that give you the convenience and flexibility you need to power up your trading activities. From the iconic MT4 and MT5 platforms to WebTrader, AvaTradeGO and AvaOptions, you can select the kind of trading experience you want when trading with AvaTrade.
  • Numerous FOREX Trading Resources
    At AvaTrade, traders have unlimited access to a comprehensive library of informative educational materials, like videos and eBooks, as well as handy trading tools and resources, such as the Economic Calendar and integrated automated trading solutions or social trading services such as AvaSocial, DupliTrade and ZuluTrade.
  • Professional Customer Service
    At AvaTrade, when we say the trader comes first, we really mean it. Customer service is available in a variety of languages; and you can always stay in touch with AvaTrade via our social channels (Facebook, Twitter and YouTube) for fresh market updates and news.

It’s time to try us. Enjoy competitive spreads & high leverage.

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 appear and will prompt you to fill out your registration details. Fill out your full name and your email address. Alternatively, you can sign up using your Facebook or Google accounts, which is an extremely fast way to sign up, with just one click.
Open Forex trading Account with Avatrade
  • After signing up, you will receive your login credentials via email, and you will be required to verify your account by uploading copies of your identity documents. You can then deposit funds into your trading account and start trading.

Open a Forex Trading Account with AvaTrade and enjoy the benefits of an internationally regulated broker!

How to Download MT4 for Forex Trading

If you want to download and use the iconic MT4 to trade with, simply follow the steps below.

  • 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?

You can start trading with AvaTrade for just $/€/£100. Australian traders can start trading with $100 AUD. AvaTrade allows payments via a selection of safe and convenient payment methods including wire transfer, debit/credit cards and various eWallets.

How are Forex Pairs Categorised?

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:

  1. Majors These represent the most popularly 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.
  2. Minors These 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.
  3. 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 more popularly traded exotics include the USDZAR, EURTRY and GBPSGD.

You can trade any type of Forex trading pair you wish, but it is often advisable for beginner traders to concentrate initially on major and minor pairs, while experienced traders can try out exotics.

Open an FX Trading Account with AvaTrade and enjoy the benefits of an internationally regulated broker!

How to Open a Forex Trading Position?

Here are 3 main ways to open a trade position on the AvaTrade MT4 platform:

  1. 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.
  2. Chart Trading. Simply right-click on your preferred asset chart window and select ‘Trading’. You can then set your preferred trading parameters.
  3. 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 understated. This means not only having a strong plan but also sticking to it, come what may. Easier said than done sometimes, and our emotions will try to get in the way of the best-laid plans. Here is how to build a profitable strategy:

  • Timeframe
    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 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 and when you will make withdrawals so that you can balance between enjoying your profits and maintaining a healthy capital amount to trade with.
  • Testing and Optimisation
    You should test your strategy before committing real capital where possible. That is where our demo accounts become really useful. We offer free, unlimited demo accounts where you test your manual strategies as no monetary risk is involved. AvaTrade also supports automatic backtesting for your automated strategy. You can then optimise the strategy to perform at the best possible level.

Open a FX Trading Account with AvaTrade and enjoy the benefits of an internationally regulated broker!

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. It is commonly found in the MetaTrader platforms.
  • 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 behavior, based on historical price patterns or movements of a particular financial asset. This works on the basis that history often repeats itself.
  • 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 in the first place. 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.

Open a FX Trading Account with AvaTrade and enjoy the benefits of an internationally regulated broker!