It’s no longer news that anyone can make money with forex trading. But like any trading skill, Forex has a learning curve, and for beginners, this is where the nightmare begins.
If you have been looking for a clear, straightforward path to make money with Forex trading as a beginner, you’re in the right place. In this article, you will learn in five easy steps how to make money with forex trading as a beginner. Let’s start with the obvious; basic learning.
Step 1: Start Learning Forex Trading
Learning is the first step before venturing into any business or financial market. Even if you’ve never traded before; you can learn and make money with forex trading as a beginner by picking from the four options below.
Best ways to learn forex trading
1. Forex Training Academies (Online or Physical)
A Forex training academy offers structured, hands-on training in a classroom-style format, which is the best for beginners. There is also a laid-down curriculum and revised method of teaching that makes it easy for a beginner to follow through.
Forex trading schools are available both online and in physical locations. Their curriculum always features one-on-one mentorship, live trading sessions, and detailed feedback on trading progress. Here are a few examples:
The best free course available online is provided by HFM and it is completely free!
Physical forex academies are available in major cities all over Africa. These academies offer direct mentorship, hands-on trading practice, and the chance to network with other beginners and professional traders.
2. Forex Education Websites
Forex education websites are the most accessible resources for beginners. They provide free tutorials, articles, quizzes, and even practice exercises to make learning easy for you as a beginner who wants to make money in forex trading.
3. YouTube Channels and Video Tutorials
If you can’t enrol in a physical Forex mentorship class, then YouTube can be a very great substitute. Many forex tutors and experienced traders post free video tutorials on YouTube.
As a beginner who want to make money with forex trading, watching videos will help you see trading strategies in action and visualize Forex concepts.
4. Books on Forex Trading
Although they are kind of limited given their offline and static nature, books can still provide structured, in-depth forex learning. But you should only use them to complement other learning options.
One popular book that can help you to make money with forex trading is Currency Trading for Dummies by Kathleen Brooks and Brian Dolan, and
Also Read – Top 5 Forex Trading Apps
Step 2: Open an Account with a Reliable Forex Broker
The next practical step after learning forex is to create an account with a broker. For beginners, we recommend HF Markets (HFM). HFM is one of the best Forex brokers for beginners and even advanced traders right now due to its user-friendly interface, and ability to trade other assets like commodities, stocks, etc.
How to Open a Trading Account with HF Markets (Step-by-Step Guide with Screenshots)
Here is a detailed guide through each step, as well as what’s required to get started.
1. Go to the HF Markets Website and Begin Registration
Head over to the official HF Markets website. Look for the green “Register” or you can visit the registration page by clicking here
Select Account Type: You’ll see options to open an Individual, Corporate, or Joint account. For most beginners, the Individual account is suitable.
Complete the Registration Form:
- Country of Residence: Select your country from the dropdown menu (e.g., Nigeria).
- Email Address: Enter a valid email address that you can access easily.
- Create a Strong Password: Choose a password that meets HFM’s requirements: between 8-15 characters, includes uppercase and lowercase letters, at least one number, and one special character.
- Accept Privacy Policy: Check the box to confirm you have read and accepted the privacy policy.
Once the form is filled out, click Register to continue.
Step 2: Verify Your Email Address
After registering, you’ll receive an email from HF Markets containing a 6-digit activation code. Open the email to find the code. It’s valid for 5 minutes, so write it down or copy it. Go back to the HF Markets website and enter the 6-digit code in the verification field.
Click Verify to confirm your email address.
HF Markets will display a confirmation message indicating that your email address has been successfully verified and your account setup is in progress. This screen will automatically redirect you once the setup is complete.
Step 3: Complete Your Profile Information
You’ll now be prompted to provide additional personal details to complete your profile setup.
Enter Personal Information:
- First Name and Last Name: Enter your full name as it appears on your identity document.
- Gender: Choose your gender from the dropdown menu.
- Country of Birth: Select your country of birth.
- Phone Number: Enter a valid phone number.
- Date of Birth: Select your birth date from the dropdown.
Choose Your Account Currency: Select your preferred account currency (e.g., NGN, USD, or EUR).
Provide Address Details:
- Province/State and Town/City: Enter the region and city you reside in.
Additional Information:
- Referral Information: Let HF Markets know how you found out about them.
- Confirm Tax Status: Check the box to confirm you are not a U.S. resident for tax purposes.
- Accept Terms and Conditions: Check the box to agree to HFM’s terms and conditions.
After filling in the required information, click Continue to proceed.
Step 4: Choose Your Trading Account Type
After verifying your email, HF Markets will ask you to choose the type of trading account you want to open. Pick your preferred account type and follow the prompts. It’s very simple and self-explanatory from here going forward.
HF Markets Account Types
HF Markets offers a range of account types designed for different trading needs and experience levels. Here’s a simplified look at each account type:
1. HF Markets Cent Account
The Cent Account is recommended for traders who have practised on a demo account and want to test real trading with a small amount of money. This account is lower-risk and only allows trading in Forex and Gold CFDs.
- Trade Size: Uses “Cent Lots” with 1,000 units instead of the usual 100,000 (standard lot).
- Fees: No commission, but variable spreads start at 1.2 pips.
- Currency: Only USD is available as the base currency.
2. HF Markets Zero Account
The Zero Account gives you access to trade many assets, including Forex, commodities, stocks, ETFs, bonds, cryptocurrencies, indices, energies, and metals.
- Spreads & Commissions: Forex spreads start at 0.0 pips, with a $3 commission per side per lot for Forex pairs. Gold trades have a $14 commission per round for every 100 ounces.
- Order Limits: Up to 500 open trades, with a minimum trade size of 0.01 lot and increases in 0.01 increments.
- Margin Calls: Margin at 50% and stop out at 20%.
- Currency Options: USD, EUR, KES, NGN, and JPY.
3. HF Markets Pro Account
The Pro Account is a flexible option that supports all HF Markets assets and several currency bases.
- Minimum Trade Size: 0.01 lot with a 0.01 trade size increment.
- Open Orders: Allows up to 500 open trades.
- Spreads & Commissions: Spreads start at 0.6 pips, and there’s no commission on Forex trades.
- Margin Management: Margin call at 50% and stop out at 20%.
- Currency Options: USD, EUR, KES, NGN, and JPY.
4. HF Markets Pro Plus Account (Nigeria Only)
The Pro Plus Account is designed specifically for Nigerian traders and supports all HF Markets products.
- Trade Sizes: Minimum trade size of 0.01 lot, up to 60 standard lots per position.
- Open Orders: Up to 500 trades are allowed simultaneously.
- Spreads & Commissions: Spread starts at 0.2 pips, with zero commission on Forex trades.
- Margin Management: Margin call at 50% and stop out at 20%.
- Currency Options: USD and NGN.
The Premium Account is HF Markets’ flagship account. It also allows trading through the HFM Mobile App and a wide selection of instruments.
- Trade Sizes: Minimum trade size of 0.01 lot, up to 60 lots per position.
- Open Orders: Up to 500 trades are allowed simultaneously.
- Spreads & Commissions: Spreads start at 1.2 pips, with no commission on Forex trades.
- Margin Management: Margin call at 50% and stop out at 20%.
- Currency Options: USD, KES, NGN, ZAR, EUR, and JPY.
Suggested – How margin in forex can impact your trade
Step 3: Practice with a Demo Account and Master Forex Strategies
If you want to make money with Forex trading, one of the most important steps as a beginner is to first practice what you are learning in a safe environment. This is where a Forex demo account for beginners comes in.
A demo account lets you practice real-time Forex trading. The only difference is that you are not using your real money to trade. You can make trades, experiment with different strategies, and see how the Forex market works without the fear of losing money.
Let’s go through how to create a demo account, and which beginner-friendly strategies to try.
How to Create Your Forex Demo Account on HF Markets
Here are the steps for beginners who want to open a Forex demo account:
Step 1: Start the Demo Account Registration
On the Account Selection Page, in the top right corner, click on the “Skip for Demo” button to bypass live account registration and go directly to the demo account setup.
Step 2: Set a Password for Your Demo Account
You’ll be prompted to create a password for your demo trading account. HF Markets requires your password to meet specific criteria:
- Between 8 and 15 characters.
- Include both uppercase and lowercase letters.
- At least one number.
- At least one special character.
After creating a secure password, click on the Open Account button to proceed.
Step 3: Review Your Demo Account Details
Once your demo account is created, HF Markets will provide your account login details, including:
- Login ID: This is your unique identifier for accessing the demo account.
- Server Information: HFMarketsGlobal-Demo, which you’ll use when logging into the trading platform.
Read through the terms and conditions and click Accept to confirm.
Step 4: Connect to Your Demo Account
Using the provided login ID and password, enter the credentials on the login screen.
Select “Connect to Account”: Ensure the correct server (HFMarketsGlobal-Demo) is selected, and click Connect to Account to access your demo account.
Step 5: Start Trading on Your Demo Account
After successfully logging in, you’ll be directed to the HF Markets trading platform.
You now have access to real-time Forex charts, trading tools, and virtual funds, allowing you to practice making trades without financial risk.
Use this opportunity to test different trading strategies, understand market movements, and familiarize yourself with the platform’s tools and features.
Forex Trading Strategies to Practice on Your Demo Account
You should test and be very familiar with some forex strategies for beginners. Here are a few simple ones to get started.
1. Trend Following Strategy
The trend following strategy is popular for beginners because it’s easy to understand. This strategy involves analyzing trends (the general direction of a currency pair).
If the trend is upward, you consider buying. If it’s downward, you might look to sell. This strategy allows you to make money with Forex trading by “following the trend” rather than predicting a sudden market change.
- Use your demo account to observe trends over different time periods.
- Decide when to enter and exit trades based on the strength and direction of the trend.
2. Range Trading Strategy
In range trading, you look for currency pairs that fluctuate between a high and low price consistently. When the currency price hits the low end, you buy, expecting it to go back up. When it reaches the high end, you sell, expecting it to fall again.
Range trading is useful in stable markets where prices move within a “range.”
- Identify support and resistance levels. The low end is known as the “support level,” while the high end is called the “resistance level.”
- Practice entering trades when prices are near support or resistance levels.
3. Breakout Strategy
A breakout strategy is when you look for a price that breaks out of a range or trend. Practising breakouts will teach you how to spot possible strong price movements.
When a price breaks above its resistance level, it might continue going up, so you would buy. If it breaks below its support level, it might keep going down, so you would sell.
4. Scalping Strategy (for Quick Trades)
Scalping in forex is all about making small, quick trades to capture small profits from minor price changes. It requires speed and focus.
In a demo account, you can practice how to make money with Forex trading by making many trades in a short time.
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Step 4: Transition to a Live Account and Start Small
After practising well on a demo account and learning basic strategies, you can transition to a live account and start real trading.
When you first begin Forex live trading, the stakes become real. While a demo account uses virtual money, a live account involves your hard-earned cash.
The decisions you make will have real consequences, so you have to move slowly and carefully. The best way to switch from demo trading to real trading has been explained below.
Best way to transition from forex demo trading to live trading
1. Choose a Small Initial Deposit
Starting with a small deposit keeps your risk level low and gives you a chance to learn without putting much of your capital at risk. With HF Markets, you can open live accounts with a small deposit.
- A small deposit helps you ease into the process. You’ll get a feel for live trading without worrying too much about large losses.
- Start with an amount you can afford to lose.
2. Use the Same Strategies from Your Demo Account
One of the common forex trading mistakes that beginners make is to change strategies when they switch to a live account. Stick to simple strategies that you feel comfortable with, and avoid trying complex methods right away.
- For example, if you practised trend following on your demo account, use the same approach in live trading. This will give you a sense of consistency.
- Avoid overtrading.
3. Set Small, Realistic Goals
When you start trading live, don’t try to make a large profit right away. Set small, achievable goals.
- For example, instead of aiming to double your account balance, focus on gaining a small, steady percentage like 1-2% growth over time.
- Small goals are easier to reach, which builds confidence.
4. Apply Strict Risk Management
Managing your risk is one of the most important Forex trading tips for beginners.
In live trading, always use risk management tools like stop-loss orders and take-profit orders to protect your account. A stop-loss order automatically closes your trade if the price goes too far against you, while a take-profit order secures your profit once your target price is reached.
- Experts recommend that as a beginner, you should only risk 1-2% of your account balance per trade. For instance, if you have $100 in your account, don’t risk more than $1-2 on a single trade.
- A stop-loss reduces your potential losses and also helps you make money with forex trading as a beginner without risking your entire balance.
5. Trade in Small Sizes and Gradually Increase
When starting with a live account, trade in small amounts.
For instance, instead of trading a full “lot” (which is 100,000 units of currency), first try trading in “micro-lots” (1,000 units) or “mini-lots” (10,000 units).
- Smaller trades let you test your emotional response to gains and losses, which helps to build the mentality you will later need as you trade on.
6. Control Your Emotions
The pressure of real money makes forex trading. You will notice that even simple decisions feel difficult. The most common emotions that forex traders battle with every day are fear and greed.
If you don’t learn to control it right from your early days, it can lead to impulsive actions. This is one of the reasons why many forex traders don’t succeed, get frustrated and quit.
- Take time to analyze your trades instead of reacting quickly to price changes.
- Avoid “Revenge Trading.” When a trade doesn’t go as planned, beginners often try to make up for the loss immediately. This usually results in more losses.
7. Keep a Trading Journal
A trading journal is where you record every trade, including the trade’s result, your reasons for entering, and what you learned. Over time, a journal shows patterns in your trading, helping you identify both strengths and areas for improvement.
Step 5: Review Your Trades and Learn from Mistakes
At first, doing this will be very boring. But it’s one of the most powerful habits you can develop to make money with Forex trading in the long run.
When you look back at your trades, you can see patterns, understand what works, and avoid repeating the same errors.
It’s perfectly normal to make mistakes when you’re new to Forex trading. The key is not to ignore these mistakes but to learn from them, which will make you a stronger and smarter trader over time.
Set a routine
Set a routine to review your trades regularly. This can be daily, weekly, or monthly. This routine keeps you in tune with your progress and helps you catch and correct Forex trading mistakes before they turn into costly habits.
How to Review Your Trades Effectively
To make the most out of reviewing your trades, follow these steps.
1. Keep a Trading Journal
A trading journal is a notebook or document where you record every trade you make. It’s a tool that can help Forex trading for beginners become more structured. In this journal, you should note down the details of each trade, including:
- Currency Pair: Record the pair you traded, like EUR/USD or GBP/JPY.
- Date and Time: Mark when you entered and exited the trade.
- Position Size: Write down how much you invested in the trade.
- Entry and Exit Points: Record the exact price you entered and exited.
- Profit or Loss: Note the outcome of the trade in dollars or pips.
- Reasons for the Trade: Explain why you decided to make the trade. Was it based on a specific strategy or a trend you observed?
- Emotions: Write down how you felt during the trade. Were you anxious, confident, or unsure?
2. Analyze Your Wins and Losses Separately
To make money with Forex trading, you must learn not only from your losses but also from your wins.
- Review Winning Trades: Look at your successful trades and ask yourself why they worked. Did you follow a specific strategy? Did you notice a clear trend? Understanding why you made money on these trades will help you repeat the process.
- Review Losing Trades: Examine your losing trades and identify the mistakes. Did you enter too early or too late? Did you follow your strategy, or did you make an impulsive decision? Learning from these mistakes can help you avoid them in future trades.
3. Spot Your Forex Trading Mistakes
Some common Forex trading mistakes include:
1. Overtrading
This happens when you trade too often, usually due to excitement or impatience. Overtrading can lead to quick losses, as not every trade opportunity is worth taking.
2. Ignoring Stop-Loss Orders
A stop-loss order limits your potential loss on a trade, but many beginners fail to use it.
3. Revenge Trading
After a loss, some beginners try to win back their money quickly with another trade. This emotional reaction often leads to poor decisions and even more losses.
4. Look for Patterns in Your Trades
Forex trading for beginners is about developing habits that help you make good decisions. When you review your trades, look for patterns that may be affecting your success.
1. Timing Patterns
Are you more successful at certain times of the day? If you find that your trades are more profitable in the morning than in the evening, focus your trading during that period.
2. Strategy Patterns
Which strategies work best for you? For example, if you see more success with trend-following than with range trading, you might want to concentrate more on trend-following.
3. Emotional Patterns
Notice how your emotions impact your trades. Do you make mistakes when you’re nervous or overly confident?
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Recap
Here is a recap of everything we have discussed in this blog post:
Step 1: Start Learning Forex Trading
Learn forex trading from an academy, YouTube videos, websites and books.
Step 2: Open an Account with a Reliable Forex Broker
HF Markets (HFM) is recommended for its reliability and beginner-friendly features. Set up an account and prepare to trade in a secure environment.
Step 3: Practice with a Demo Account and Master Forex Strategies
Before risking real money, use a Forex demo account for beginners to practice and get comfortable. Test simple strategies like trend following or range trading, and get familiar with the platform.
Step 4: Transition to a Live Account and Start Small
When you’re ready, switch to a live account but start small. Use the strategies you practised in your demo account and keep your trades small. Manage risk carefully with tools like stop-loss orders, and don’t overextend your trades.
Step 5: Review Your Trades and Learn from Mistakes
The final step is to review every trade you make. Use a trading journal to record what worked, what didn’t, and how you felt during each trade. This habit helps you identify patterns, avoid common Forex trading mistakes, and make money with Forex trading.
Conclusion
Now that you know the essentials, you’re ready to start making money with Forex trading. But have in the back of your mind that forex trading isn’t about getting rich overnight. It requires continuous learning of strategies, patience, and discipline.
The most successful traders are those who manage risk wisely, learn from every trade, and keep emotions in check. Stick to your plan, review your trades regularly, and always be willing to learn and adapt.
FAQs on Ways to Make Money with Forex Trading as a Beginner
Here are answers to some of the most common questions that beginners have about Forex trading. These answers will guide you on your learning and trading journey.
1. How to make money on forex for beginners?
To make money with Forex trading, beginners should start by learning the basics, practising with a Forex demo account, and using simple strategies like trend-following. Keep risk low, start small, and use a reliable broker like HF Markets for a secure trading environment.
2. What is the easiest forex strategy for beginners?
The easiest Forex trading strategy for beginners is trend-following. This strategy involves trading in the direction of the current trend, buying when prices are moving up and selling when they’re moving down. It’s simple and effective for beginners who want to make money with Forex trading.
3. How to start trading forex as a beginner?
Beginners should start trading Forex by learning the basics, choosing a reliable broker like HF Markets, and opening a demo account to practice. Once comfortable, they can switch to a live account.
4. How much can I earn from $100 forex trading?
With $100, beginners can earn small, consistent profits if they manage risk well. But note that the profit depends on the trading strategy, experience, and risk management used. Start small, and aim for gradual growth instead of high returns on the first day.
5. Can I teach myself forex?
Yes, you can teach yourself Forex trading by studying online resources, practising on a Forex demo account for beginners, and gradually learning about Forex trading strategies. Self-learning is harder than enrolling in a forex academy. It also takes more time. But it’s very possible if you are disciplined.
6. Which forex broker is best for beginners?
The best Forex brokers for beginners offer low fees, educational resources, and demo accounts. HF Markets is an excellent choice right now because of its beginner-friendly tools and support.
7. How can I master forex fast?
To master Forex trading quickly, study daily, practice on a demo account, and focus on one or two simple strategies. Stay consistent, avoid Forex trading mistakes, and be patient with your progress.
8. What is the 5 3 1 rule in forex?
The 5-3-1 rule in Forex trading suggests focusing on 5 currency pairs, practising 3 strategies, and trading at 1 time of day. It helps beginners stay focused and avoid confusion with too many variables.
9. Which trading method is best for beginners?
The best Forex trading strategy for beginners is usually a simple one, such as trend-following or range trading. These methods are easy to learn and can be tested using a Forex demo account for beginners before going live.
10. What is the trick to forex trading?
The “trick” to Forex trading is consistency and risk management. Stick to one strategy, set realistic goals, and never risk more than you can afford to lose. Patience and discipline are key to making money with Forex trading.
11. How many hours a day should I study forex?
Beginners should aim to study Forex for at least 1-2 hours per day. Studying regularly helps you build knowledge over time, practice strategies, and avoid Forex trading mistakes.
12. How can I practice forex?
The best way to practice Forex trading is by using a Forex demo account for beginners. Demo accounts, like those offered by HF Markets, let you trade with virtual money, allowing you to test strategies and learn without risking real money.
13. How many dollars is 1 pip?
The value of 1 pip depends on the currency pair and the trade size. For a standard lot (100,000 units), 1 pip is usually worth $10. For smaller lot sizes, like a mini-lot (10,000 units), 1 pip is worth $1. For a micro-lot, it’s $0.10.
14. Can I trade with $1 in forex?
Yes, some brokers allow beginners to start trading with as little as $1. But, it’s best to start with a bit more to cover small losses.
15. How many dollars is 0.01 lot size?
In Forex, a 0.01 lot size is known as a micro-lot, and it represents 1,000 units of the base currency. The value of 1 pip in a micro-lot is about $0.10, depending on the currency pair.
16. How do I trade my first forex?
To trade Forex for the first time, open a live account with a reliable broker like HF Markets, fund your account, and use a simple Forex trading strategy. Start small, manage risk carefully, and avoid Forex trading mistakes by sticking to your plan.
17. What is the most successful forex strategy?
The most successful Forex trading strategy for beginners is trend-following, where traders move in the direction of the current trend. This strategy is popular because it’s easy to understand and works well in trending markets.
18. Is scalping good for beginners?
Scalping, which involves making quick trades for small profits is usually hard for beginners. This is because it requires fast decision-making and can lead to Forex trading mistakes if not managed well. Beginners may find slower strategies easier.
19. How can I teach myself forex?
You can teach yourself Forex trading by studying online resources, practising on a Forex demo account for beginners, and testing simple Forex trading strategies. Focus on learning one topic at a time, and take it slow.
20. How to trade forex for the first time?
To trade Forex for the first time, open a live account with HF Markets, deposit funds, and start with a small position. Use a simple trading strategy, set stop-losses, and review each trade to learn from your experience.
21. Which trading is best for earning money?
Forex trading can be profitable if approached with caution. Beginners should use strategies like trend-following and start with a Forex demo account to understand how to make money with Forex trading safely.
22. What should I learn first in forex trading?
The first thing to learn in Forex trading for beginners is how currency pairs work, including understanding pips, spreads, and how leverage affects trades. Start with basics before moving to complex strategies.
23. How to know when to buy or sell in forex?
In Forex trading, you buy when you expect the currency to increase in value and sell when you expect it to decrease. Use indicators like moving averages or trend lines to help decide.
24. How fast can I learn forex?
How fast you learn Forex depends on your dedication. With daily study and practice on a Forex demo account for beginners, you can learn the basics in 1-3 months. Mastery, however, takes several months or years.
25. What is the best currency to trade in forex as a beginner?
The best currency pairs for beginners are major pairs like EUR/USD or GBP/USD. These pairs have high liquidity and lower volatility.
26. How to analyse forex charts?
To analyze Forex charts, learn basic indicators like moving averages, RSI, and MACD. These tools help you identify trends and make informed decisions, which are essential in Forex trading for beginners.
27. What is the full form of forex?
The full form of Forex is “Foreign Exchange.” It refers to the exchange of currencies on a global market, where traders buy and sell currency pairs to make money with Forex trading.
28. What is the best forex strategy for beginners?
The best Forex strategy for beginners is trend-following, as it’s simple to understand and effective. This approach involves trading in the direction of the prevailing market trend.
29. Which trading app is best for beginners?
MetaTrader 4 (MT4) is the best trading app for beginners. As you gain more experience you can move to MT5, which has more advanced features.
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30. What is the first thing to learn in trading?
The first thing to learn in forex trading is the basics of the market, including how prices move, how to use a trading platform, and how to analyze charts. These skills are a must for you as a beginner.
For beginners, we recommend HF Markets (HFM). It is one of the best Forex brokers for beginners and even advanced traders right now due to its user-friendly interface, and ability to trade other assets like commodities, stocks, etc.
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