By learning how to start trading on Forex, you can open a new source of income for yourself. But first, you need to learn how to trade and make a profit with it. In this OctaFX trading guide, you’ll learn how to start trading wisely and maximise your profit in the long run.
1. Learn about Forex trading
Watch Forex trading course
If you’re a beginner, there are certain concepts and terms that you need to get familiar with. We’ve covered them in the How to trade Forex article. You can also explore our Education section. It’ll help you expand your knowledge about the market in general and our services in particular. If you feel like practising with virtual funds before switching to real trading, you can open an OctaFX demo account. Let’s start with some important Forex concepts.
Margin is the amount of funds required to open new and maintain open positions. It is different for each instrument. You can use our Trading Calculator to figure out your required margin. If you don't have enough funds (for example, if your floating loss gets too high)—you might be asked to top up your account to keep your orders. This event is known as margin call.
Pip is a standardised unit of price change. 1 pip is calculated by the second to last digit. For example, when the price for the EUR/USD currency pair changes from 1.11634 to 1.11645, it means the price has changed by 1.1 pips. For the USD/JPY currency pair, which has 3-digit pricing, a change from 123.857 to 123.864 means that the price has grown by 0.7 pips.
Leverage reduces marginal requirements, the amount necessary to maintain a certain position, and helps you open orders with a volume larger than your balance would allow otherwise. It is important to note that the higher the volume of your order, the more you gain or lose.
Let’s say you have a trading account with 500 USD and a 1:500 leverage applied. You decide to open a position for 1 lot (100,000 units) on EUR/USD, when the price is at 1.13415. The required margin for this position is 226.83 USD, almost half of your funds. Each pip movement is then worth 10 USD. Therefore, the price only needs to drop to 1.13145 for you to lose nearly all money in your account. If you open a position for 0.5 lots, each pip will cost you only 5 USD. In this case, if the price falls to 1.13145, your loss will amount to 135 USD.
How much leverage should you use? It depends on the level of risk you’re willing to take. Higher leverage means higher risk and reward. You can change it at any time as you learn.
2. Open an OctaFX account
Open account
With an OctaFX account, you can access the foreign exchange market and start trading.
First, you need to enter your name, email, and a secure but easy-to-remember password. You’ll also need to specify your experience in trading. This way, we’ll offer you more useful content. After clicking ‘Open account’, open your inbox and confirm your email.
Next, you’ll need to provide more details about yourself. After you enter your country, phone number, and birthday, press ‘Continue’ and pick a trading account creation mode. ‘Standard’ mode allows you to create an account with a single click, while the Custom one lets you pick between an OctaFX Demo and Real accounts, choose a trading platform and leverage. By default, it will be a Real MetaTrader 5 account with maximum leverage.
If you’re just starting out, a demo account is a better option than the real one. It allows you to practise trading without risking your funds. You don’t need to make any investments—simply specify the amount of simulated funds you want to add to your account upon creation.
Once you register, you’ll receive an email with your profile and trading account credentials. From there, you can log in to your profile to manage your funds, get bonuses, and take part in our promotions, or start trading immediately in the web terminal.
Which trading platform is right for you
We support three trading platforms: MetaTrader 4, MetaTrader 5, and OctaTrader.
MetaTrader 4 is an older version of MetaTrader. It’s not as powerful as its newer counterpart, as it offers a limited amount of instruments and tools for trading. However, such limitations make the platform perfect for beginners and traders who prefer to use external tools.
MetaTrader 5 is a newer version of MetaTrader. It offers a highly customisable interface and a wide selection of instruments. Another strength of the platform lies in professional tools, such as level 2 market data, partial fills, a full-size tick chart, and an economic calendar.
Keep in mind that MetaTrader apps are blocked on iOS, so you might have to use their web or desktop versions. You can also download the OctaFX Trading App and trade on OctaTrader.
OctaTrader is our built-in trading platform. The best of both worlds, it offers a modern interface that’s easy to learn and tinker with, along with a complete selection of instruments. With OctaTrader, you can trade and manage all your accounts in a single web or mobile app.
3. Choose your trading strategy
Compare trading strategies
As a beginner, you can simply track the general direction of the price on the chart and open Buy orders when it goes up or Sell orders when it goes down. This may not get you a guaranteed profit every time, however, it is a good start for developing your strategy.
There are three types of trends you should look for: uptrend, downtrend, and sideways trend. If you notice a trend, you should mark it with lines as shown on the picture below. The closer the price is to one of the lines—the more likely it is to go in the opposite direction.
Two more advanced methods of price prediction are technical analysis and fundamental analysis. They allow you to predict short-term and long-term price changes, respectively.
If you have little to no experience, it’s better to avoid trading during major news releases, as the market tends to be highly volatile. You should also consider learning about the basic risk management techniques, as they will help you avoid losses from.
There are many strategies that allow you to profit from currency price fluctuations, for example, scalping, martingale, hedging, news trading, and many others. Read our Trading Strategies article to find a detailed description of the most common strategies and choose the best one for you.
4. Deposit and start trading
Make deposit
Log in to your profile to make a deposit without any commissions. You can start trading with a minimum of 25 USD. The minimum deposit in OctaFX can vary depending on your region and the payment method.
OctaFX minimum deposit by region
Argentina | Brazil | Ghana | Indonesia | |
50 EUR/USD | 35 USD | 50 EUR/USD | 1,500 INR | 400,000 IDR |
Kenya | Mexico | Nigeria | Pakistan | |
25 EUR/USD | 100 RM | 500 MXN | 15,000 NGN | 5,000 PKR |
Singapore | Thailand | UAE | ||
2,500 PHP | 50 SGD | 900 ZAR | 1,000 THB | 180 AED |
A minimum deposit might not be enough to diversify your investments. According to the risk management basics, the more funds you have, the fewer risks you expose yourself to.
When you trade, you open a Buy order if you expect the price to go up and open a Sell order if you expect the price to go down. It means that you buy a certain amount at a lower price now to sell it back at a higher price later and gain profit from the price difference.
Let’s assume that you chose OctaTrader as your trading platform. First, you need to pick the instrument (‘Symbol’) you’d like to trade. Then, select the volume of your position and press Buy or Sell to open an order. Congratulations, you placed your first order!
You can view and manage all your orders in the ‘Orders’ section. To close an order, pick it from the list and press ‘Close’ in the ‘Edit order’ window. You can also set Stop Loss and Take Profit here to make your order close automatically if the price gets lower or higher.
That’s it. If you have any questions—explore the links we provided and the FAQ section below. Immerse yourself in trading, play around with simulated funds in your demo account, and when you feel you’re ready to earn real money—open the real account. Good luck!
Start trading
FAQ
Can I trade Forex by myself?
Yes, you can. You’ll need to learn how to trade Forex first, but if you’re an adult—there’s nothing stopping you from making Forex your second or even a primary source of income. Keep in mind that you’ll need to verify you’re over 18 years of age to withdraw funds.
How much does it cost to open a Forex account?
0 USD. All OctaFX accounts are completely free. We don’t take any commissions on deposits and withdrawals, and our spreads (difference between the Buy and Sell price) are among the lowest in the industry. Basically, you get the most out of the funds you have.
How much do I need to start trading Forex?
Our minimum deposit is 25 USD, but it might change depending on your region and the payment option. For example, the minimum deposit for OctaFX in Nigeria is 15,000 NGN. Refer to the ‘OctaFX minimum deposit by region’ table for more information.
How can I open a Forex trading account?
You need to open an OctaFX account. This will allow you to create either a demo or real trading account during the registration process. After the registration is complete, you can create more trading accounts and manage them in your profile.
How to open a demo trading account?
During registration, you’ll be asked to start a trading account. Pick the ‘Custom’ option, press ‘Continue’, select ‘Demo’, set a platform and leverage, enter your starting balance, and press ‘Create account’. You can also create an account through your profile.
Which trading platform is best for beginners?
MetaTrader 4 and OctaTrader are both great for beginners. If you need a simple, limited tool to practise your trading skills—choose MetaTrader. If you’re looking for something more powerful and modern yet simple enough to learn and master—OctaTrader is your best bet.
Which platform is best for Forex trading?
Depending on your needs and preferences, you might enjoy the modern interface and frequent updates of OctaTrader or a more traditional yet stable approach of MetaTrader 5. Both offer access to 230+ instruments. MetaTrader 4 is also a good but more limited option.
How to open and close a trade on MT4/MT5?
In the ‘Trade’ tab, you can set volume and press ‘Buy’ or ‘Sell’ or press the ‘Open Order’ button to see more options. To close an order, you can double press (long press on mobile) it in the order list and select ‘Close’ or press the cross on the right side (on web and desktop).
How can I trade Forex on my phone?
You can use the OctaFX Trading App to enter the OctaTrader platform, or use MetaTrader 4 and MetaTrader 5 apps to trade on their respective platforms. Keep in mind that MetaTrader is no longer available on the App Store, so you might have to use the web version.
