Open A Usa Forex Account And Trade Currencies Online

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The foreign exchange market, also known as the forex market, is the world’s most traded financial market. Read on lớn learn how to become a forex trader with our comprehensive Beginner’s Guide.

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At FXTM, we are committed khổng lồ ensuring our clients have the best education, tools, platforms & accounts to trade forex. You’ll find everything you need lớn know about forex trading, what it is, how it works and how to lớn start trading.


What is forex?

Forex is short for foreign exchange – the transaction of changing one currency into lớn another currency. This process can be performed for a variety of reasons including commercial, tourism và to lớn enable international trade.

The foreign exchange (also known as forex or FX) market refers lớn the global marketplace where banks, institutions & investors trade và speculate on national currencies.


What is the forex market?

The forex market is by far the largest and most liquid financial market in the world, with an estimated average global daily turnover of more than US$6.5 trillion — which has risen from $5 trillion just a few years ago.

The forex market is open to lớn buy and sell currencies 24 hours a day, five days a week and is used by banks, businesses, investment firms, hedge funds và retail traders.

One critical feature of the forex market is that there is no central marketplace or exchange in a central location, as all trading is done electronically via computer networks. This is known as an over-the-counter (OTC) market.


What is forex trading?


Forex trading is the process of speculating on currency prices to potentially make a profit. Currencies are traded in pairs, so by exchanging one currency for another, a trader is speculating on whether one currency will rise or fall in value against the other.

The value of a currency pair is influenced by trade flows, economic, political và geopolitical events which affect the supply & demand of forex. This creates daily volatility that may offer a forex trader new opportunities.

Online trading platforms provided by global brokers like FXTM mean you can buy & sell currencies from your phone, máy tính xách tay, tablet or PC.


What is an online forex broker?


An online forex broker acts as an intermediary, enabling retail traders to access online trading platforms to lớn speculate on currencies and their price movements.

Most online brokers will offer leverage to lớn individual traders, which allows them to lớn control a large forex position with a small deposit. It is important to rethành viên that profits & losses are magnified when trading with leverage.

FXTM offers a number of different trading accounts, each providing services & features tailored to a clients’ individual trading objectives.

Discover the account that’s right for you by visiting our tài khoản page. If you’re new khổng lồ forex, you can begin exploring the markets by trading on our kiểm tra tài khoản, risk-free.


Why trade forex?


Forex offers many benefits lớn retail traders.

You can trade around the clochồng in different sessions across the globe, as the forex market is not traded through a central exchange like a stochồng market. This means you can jump on volatility, wherever it happens. High liquidity also enables you to execute your orders quickly và effortlessly.

Trading forex using leverage allows you khổng lồ open a position by putting up only a portion of the full trade value. You can also go long (buy) or short (sell) depending on whether you think a forex pair’s value will rise or fall.

Forex trading offers constant opportunities across a wide range of FX pairs. FXTM’s comprehensive range of educational resources are a perfect way khổng lồ get started & improve your trading knowledge.


Understanding Currency Pairs


All transactions made on the forex market involve sầu the simultaneous buying & selling of two currencies.


This ‘currency pair’ is made up of a base currency & a quote currency, whereby you sell one to lớn purchase another. The price for a pair is how much of the quote currency it costs lớn buy one unit of the base currency. You can make a profit by correctly forecasting the price move sầu of a currency pair.

FXTM offers hundreds of combinations of currency pairs lớn trade including the majors which are the most popular traded pairs in the forex market. These include the triệu Euro against the US Dollar, the US Dollar against the Japanese Yen & the British Pound against the US Dollar.

The table below looks at the most traded currency pair in the forex market.


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Base currency


The base currency is the first currency that appears in a forex pair & is always quoted on the left. This currency is bought or sold in exchange for the quote currency & is always worth 1.

So, based on the example above sầu, it will cost a trader 1.1918 USD khổng lồ buy 1 EUR. Alternatively, a trader could sell 1 EUR for 1.1916 USD.

When you are trading forex, you are always buying one currency & selling another at the same time.


Quote currencies


The second currency of a currency pair is called the quote currency và is always on the right. In EUR/USD for example, USD is the quote currency and shows how much of the quote currency you’ll exchange for 1 unit of the base currency.

When you are trading forex, remember you are always trading a pair - so you are selling one lớn buy another.


Bid Price


The bid price is the value at which a trader is prepared to sell a currency. This price is usually khổng lồ the left of the quote and often in red.

The bid price is given in real time và is constantly updating as it is a live sầu market.


Ask Price


The ask price is the value at which a trader accepts to buy a currency or is the lowest price a seller is willing khổng lồ accept. This is usually to lớn the right and in blue.

The ask price is given in real time và is constantly changing as it is a live sầu market.


Spread


As a forex trader, you’ll notice that the bid price is always higher than the ask price. The difference between these two prices is the spread. In other words, it is the cost of trading. The narrower the spread, the cheaper it costs. The wider the spread, the more expensive sầu it is.

For example, if EUR/USD is trading with an ask price of 1.1918 and a bid price of 1.1916, then the spread will be the ask price minus the bid price. In this case, 0.0002.

In order lớn make a profit in foreign exchange trading, you’ll want the market price to lớn rise above sầu the bid price if you are long, or fall below the ask price if you are short.


Pips


A point in percentage – or pip for short – is a measure of the change in value of a currency pair in the forex market.

It is the smallest possible move that a currency price can change which is the equivalent of a ‘point’ of movement


Base Currency

The base currency is the first currency that appears in a forex pair và is always quoted on the left. This currency is bought or sold in exchange for the quote currency và is always worth 1.

So, based on the example above, it will cost a trader 1.1918 USD to buy 1 EUR. Alternatively, a trader could sell 1 EUR for 1.1916 USD.

When you are trading forex, you are always buying one currency & selling another at the same time.


Quote currencies

The second currency of a currency pair is called the quote currency và is always on the right. In EUR/USD for example, USD is the quote currency và shows how much of the quote currency you’ll exchange for 1 unit of the base currency.

When you are trading forex, remember you are always trading a pair - so you are selling one lớn buy another.


Bid Price

The bid price is the value at which a trader is prepared to lớn sell a currency. This price is usually to the left of the quote and often in red.

The bid price is given in real time & is constantly updating as it is a live sầu market.


Ask Price

The ask price is the value at which a trader accepts to buy a currency or is the lowest price a seller is willing khổng lồ accept. This is usually to lớn the right and in blue.

The ask price is given in real time & is constantly changing as it is a live sầu market.


Spread

As a forex trader, you’ll notice that the bid price is always higher than the ask price. The difference between these two prices is the spread. In other words, it is the cost of trading. The narrower the spread, the cheaper it costs. The wider the spread, the more expensive it is.

For example, if EUR/USD is trading with an ask price of 1.1918 và a bid price of 1.1916, then the spread will be the ask price minus the bid price. In this case, 0.0002.

In order lớn make a profit in foreign exchange trading, you’ll want the market price lớn rise above sầu the bid price if you are long, or fall below the ask price if you are short.


Pips

A point in percentage – or pip for short – is a measure of the change in value of a currency pair in the forex market.

It is the smallest possible move sầu that a currency price can change which is the equivalent of a ‘point’ of movement


For most currency pairs, a pip is the fourth decimal place, the main exception being the Japanese Yen where a pip is the second decimal place.

On the forex market, trades in currencies are often worth millions, so small bid-ask price differences (i.e. several pips) can soon add up to a significant profit. Of course, such large trading volumes mean a small spread can also equate to lớn significant losses.

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Trading forex is risky, so always trade carefully và implement risk management tools và techniques.


What is a Forex Trader?

A currency trader, also known as a forex trader, will hold a ‘position’ in a currency pair. This is the term used to lớn describe a trade in progress và one that will have sầu a profit or a loss, as the open position indicates the trader has some market exposure.

To represent our positions below, we’ll be using EURUSD trading at 1.1916/1.1918 as an example.


A long position means a trader has bought a currency expecting its value to rise. Once the trader sells that currency back khổng lồ the market (ideally for a higher price than he or she paid for it), their long position is said lớn be ‘closed’ and the trade is complete.

So if you wanted khổng lồ open a long position on the triệu Euro, you would purchase 1 triệu Euro for USD 1.1918. You will then hold your position in the hope that it will appreciate, selling it baông chồng lớn the market at a profit once the price has increased.


A short position refers khổng lồ a trader who sells a currency expecting its value khổng lồ fall & plans lớn buy it bachồng at a lower price. A short position is ‘closed’ once the trader buys baông chồng the asphối (ideally for less than he or she sold it for).

In this case, if you think the Euro will weaken against the Dollar, you will sell 1 triệu Euro for USD 1.1916 and hold a short position. You expect the Euro to lớn depreciate & plan to lớn buy it bachồng at a lower rate.


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What are the most traded currency pairs on the forex market?

There are seven major currency pairs traded in the forex market, all of which include the US Dollar in the pair.

You can also trade crosses, which bởi not involve sầu the USD, và exotic currency pairs which are historically less commonly traded (và relatively illiquid). This means they often come with wider spreads, meaning they’re more expensive sầu than crosses or majors.


Major currency pairs


Major currency pairs are generally thought to drive sầu the forex market. They are the most commonly traded & trương mục for over 80% of daily forex trade volume.

There are four traditional majors – EURUSD, GBPUSD, USDJPY và USDCHF – và three known as the commodity pairs – AUDUSD, USDCAD và NZDUSD.

These currency pairs typically have sầu high liquidity, which means they tover to have sầu lower spreads. They are associated with stable, well managed economies and are less prone to slippage, where the expected price of a trade differs from the price the trade was executed at.


Brackets


Major currency pairs
Popular currency pairs
Minor currency pairs
"--" Nicknames
Exotic currency pairs
7 Major pairs


EUR/USD
"fiber"

USD/JPY
"gopher"

GBP/USD
"cable"
USD/CHF
"swissie"
AUD/USD
"aussie"
USD/CAD
"loonie"
NZD/USD
"kiwi"

Cross currency pairs


Cross currency pairs, known as crosses, vì not include the US Dollar. Historically, these pairs were converted first into USD and then inkhổng lồ the desired currency - but are now offered for direct exchange.

The most commonly traded are derived from minor currency pairs and can be less liquid than major currency pairs. Examples of the most commonly traded crosses include EURGBP, EURCHF, and EURJPY.


Brackets


Major currency pairs
Popular currency pairs
Minor currency pairs
"--" Nicknames
Exotic currency pairs
6 Cross pairs

EUR/GBP
"chunnel"
EUR/JPY
"yuppy"
GBP/JPY
"guppy"
NZD/JPY
"kiwi yen"
CAD/CHF
"loonie swissy"
AUD/JPY
"--"

Exotic currency pairs


Exotics are currencies from emerging or developing economies, paired with one major currency.

Compared to lớn crosses và majors, exotics are traditionally riskier lớn trade because they are more volatile & less liquid. This is because these countries’ economies can be more susceptible lớn intervention & sudden shifts in political và financial developments.


Brackets


Major currency pairs
Popular currency pairs
Minor currency pairs
"--" Nicknames
Exotic currency pairs
6 Exotic pairs

USD/MXN
"--"
GBP/NOK
"--"
GBP/DKK
"--"
CHF/NOK
"--"
EUR/TRY
"--"
AUD/JPY
"--"

Here’s an overview of the several different currency pairs across forex trading, as well as their nicknames used in the market.


7 Major pairs

EUR/USD
"fiber"
USD/JPY
"gopher"
GBP/USD
"cable"
USD/CHF
"swissie"
AUD/USD
"aussie"
USD/CAD
"loonie"
NZD/USD
"kiwi"
6 Cross pairs

EUR/GBP
"chunnel"
EUR/JPY
"yuppy"
GBP/JPY
"guppy"
NZD/JPY
"kiwi yen"
CAD/CHF
"loonie swissy"
AUD/JPY
"--"
6 Exotic pairs

USD/MXN
"--"
GBP/NOK
"--"
GBP/DKK
"--"
CHF/NOK
"--"
EUR/TRY
"--"
AUD/JPY
"--"

Brackets


Major currency pairs
Popular currency pairs
Minor currency pairs
"--" Nicknames
Exotic currency pairs

How to lớn trade forex for beginners

There are two main types of analysis that traders use lớn predict market movements & enter live positions in forex markets – fundamental analysis và technical analysis.

A forex trader will tover to lớn use one or a combination of these khổng lồ determine their trading style which fits their personality.


Fundamental Analysis

This analysis is interested in the ‘why’ – why is a forex market reacting the way it does? Forex and currencies are affected by many reasons, including a country’s economic strength, political & social factors, & market sentiment. Basically, anything you can think of which gives you a clue khổng lồ the market’s future direction.


News và Economic Data

Investors và banks look for svào economies khổng lồ place their funds, in the expectation that their capital will appreciate. This is because the currency of that country will be in dem& as the outlook for the economy encourages more investment. Any news and economic reports which bachồng this up will in turn see traders want to buy that country’s currency.


Central Bank & Government Policy

Central banks determine monetary policy, which means they control things like money supply and interest rates. The tools & policy types used will ultimately affect the supply & dem& of their currencies. A government’s use of fiscal policy through spending or taxes to grow or slow the economy may also affect exchange rates.


Technical Analysis

Forex traders who use technical analysis study price action & trends on the price charts. These movements can help the trader lớn identify clues about levels of supply and demvà.

The aim of technical analysis is lớn interpret patterns seen in charts that will help you find the right time and price màn chơi to lớn both enter and exit the market.


The three most popular charts in trading are:


Candlestiông chồng chart
Bar chart
Line chart
Candlestichồng chart

This chart is a favourite amongst forex traders, as it shows similar information to lớn a bar và line chart, but arguably in a better way.

The chart displays the high-to-low range with a vertical line và opening và closing prices. The difference lớn the bar charts is in the ‘body’ which covers the opening và closing prices, while the candle ‘wicks’ show the high và low.

If the candlestiông chồng is filled, then the currency pair closed lower than it opened. If the candlestiông chồng is hollow, then the closing price is higher than the opening price.


Bar chart

A bar chart shows the opening & closing prices, as well as the high and low for that period.

The top of the bar shows the highest price paid, và the bottom indicates the lowest traded price.

The whole bar represents the currency pair"s whole trading range and the horizontal marks on the sides indicate the opening (left) và the closing prices (right).

A bar chart is most commonly used khổng lồ identify the contraction và expansion of price ranges.


Line chart

A line chart is easy to understand for trading beginners. It simply shows a line drawn from one closing price to lớn the next.

When connected, it is simple to lớn identify a price movement of a currency pair through a specific time period & determine currency patterns.


Need khổng lồ know more about trading forex?

So far in this guide, we’ve sầu briefly covered some important aspects of forex trading, including what is forex trading, what currency pairs are, how forex trading and currency markets work, and how traders can profit from positions taken on the forex market. But that’s just scratching the surface, of course!

There’s much more lớn learn about forex, so keep going – & kiểm tra out some of the liên kết that we provide throughout the final sections below.


How to lớn start trading with a forex broker

FXTM gives you access khổng lồ trading forex as you can execute your buy và sell orders on their trading platforms.

You should always choose a licensed, regulated broker that has at least five years of proven experience. These brokers will offer you peace of mind as they will always prioritise the protection of your funds.

Once you open an active sầu account, you can start trading forex — và you will be required khổng lồ make a deposit to lớn cover the costs of your trades. This is called a margin trương mục which uses financial derivatives like CFDs khổng lồ buy and sell currencies.

It is important khổng lồ rethành viên that trading for beginners isn’t an overnight process. It takes time khổng lồ become familiar with the markets and there’s a whole new vocabulary to learn.

For this reason, FXTM offer a wealth of resources to lớn learn lớn trade forex. For example, our Demo tài khoản is a great way khổng lồ experiment with different trading strategies – but with virtual money which means with no risk attached!

Once you’re ready khổng lồ move on to lớn live trading, we’ve also got a great range of trading accounts & online trading platforms khổng lồ suit you.


As a leading global broker, FXTM are committed khổng lồ providing flexible services tailored khổng lồ the needs of our clients. As such, we are proud khổng lồ offer the most popular trading platforms in the world – MetaTrader 4 (MT4) and MetaTrader 5 (MT5).

They are both available on a PC, Mac, Mobile or tablet. Our traders can also use the WebTrader version, which means no tải về is required. All you need is an internet connection.

Our FXTM Trader App gives you access to lớn markets from the palm of your hvà on iOS & Android devices. This allows you to lớn trade the markets on the go, anytime & anywhere.


All these platforms can be used to lớn open, cchiến bại and manage trades from the device of your choice. They contain a huge variety of tools, indicators and charts designed to allow you lớn monitor và analyse the markets in real-time. You can even build strategies khổng lồ execute your trades using algorithms.

Together with innovative services such as FXTM’s Pivot Point tool, Dow Jones insights, & our award-winning Customer Support team, our clients have sầu the resources they need khổng lồ trade with confidence on the platsize of their choice.

You can read more & tải về the trading platforms from our trading platforms page.

Dow Jones insights are only available in English và Chinese, and the MT5 platsize is not available for residents in the UK.


Learn forex trading

FXTM firmly believes that developing a sound understanding of the markets is your best chance at success as a forex trader. That’s why we offer a vast range of industry-leading educational resources in a variety of languages which are tailored to the needs of both new and more experienced traders.

These include Ebooks, daily market analysis, a variety of videos, & more long read guides just lượt thích this one!

There are also many forex tools available khổng lồ traders such as margin calculators, pip calculators, profit calculators, foreign exchange currency converters, economic data calendars and trading signals.

Forex widgets can help lớn enhance your trading experience. Some of the most popular widgets include Live sầu Rates Feed, Live Commodities Quotes, Live Indices Quotes, và Market Update widgets.

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All of this information and resource is designed to help build your confidence to become a more profitable and long-term forex trader.