I’v been trading with FXCM trading station for the past week (about the same time i started trying to understand forex) and I got used to it.
10k cost $50 in margin account and with pip movement of $1
20k cost $100 in margin account and pip movement of $2
pretty plain and simple. well. I started trying to trade with oanda and its more technical. i was curious if anyone trades with it and would like to help me with it
It’s not really more technical. I believe Oandas default leverage is set to 30:1 for the game and live account so you could change that to a max of 50:1 by clicking on Account / Change leverage. Once you change it to say 50:1 than when you make a trade of 10,000 units it would be $1 a pip and 2% margin (for xxx/USD pairs). Oanda let you trade any lot size you want so you can trade .10 a pip if you buy a lot size of 1000 units. Your margin will be a lot higher for 10000 units since Oanda’s maximum leverage is 50 and not 200 like FXCM. See margine rules below.
I think I understand it more. Last night I was so confused from trying to figure everything out. So, would it be better to place $50 in a margin account for $1 pip value on FXCM or for about $50 in oanda it gives you $.10. I guess its a lower risk factor? What do you guys think.
I also trade with Oanda. I’m not familiar with other brokers, but Oanda is the only one I know that lets you buy individual units rather than lots or partial lots.
I recommend starting out with the FXGAME platform, where you’re free to trade with as much ‘play money’ as you like for as long as you wish. Some people discourage demo trading, but I know of no better way to get to know the interface. And it’s worth taking the time to become comfortable with your trading environment. Spend your first few weeks playing with fxgame and not worrying about profits and losses.
Once you’re comfortable with the interface and the way trading in the forex works, then you can start formulating a plan for making money. You’ll still be working with fxgame for this. Take some time to experiment with different aspects of your plan. At least a month or two. At this phase, I began each week with $5,000 in ‘Monopoly money’ and traded it at 20:1 leverage, then observed the results at the end of the week. When you’re confident that you can take profits consistently while demo trading, then you can move on to the next step.
Open an FXTRADE account and send a small amount of money to it. This is the step I’m currently working on, myself. I’ve sent one-tenth of my intended trading capital. I’m using it to make adjustments to my plan and ensure that it works in the real world forex. At the end of this test I’m going to request a payment from Oanda to make sure there won’t be any hassles in getting paid.
Once I have a check from my dealer and I’ve ensured that everything works exactly as I expect it to work, I will send the full amount of capital I intend to trade. I’m not in a hurry or trying to rush any of these steps; I want to make sure things happen as they should and that I remain in control of both my expectations and my money.
Like anything worth learning, Forex should be an investment of time before it involves money. Trade for the experience first; after you have that you’ll be well equipped to trade for profit later.
All the best,
~GC