If economic policy changes without warning it can create major fluctuations in currency value. In 2015 the Swiss National Bank (SNB) abruptly scrapped the Swiss Franc’s peg to the Euro with no warning. This resulted in a huge increase in the value of the franc versus the euro – moving from 1.2 CHF/EUR to 0.86 within hours of the news. CFD traders can speculate on whether an asset will increase or decrease in value and can profit either way.

Others use complicated mathematical indicators to try and predict the likely future action of a currency pair. Sometimes a central bank will announce a sudden interest rate cut, which can send currencies flying or plummeting. The best way to protect yourself from these sudden events is by keeping your eye on expected economic releases.

Forex Trading Tools and Strategies

In forex trading, the difference between the buying price and selling price of a currency pair is called the spread. Forex trading is the buying and selling of currencies on the foreign exchange market with the aim of making a profit. Based on factors such as forex market range, currency trading conditions, forex fees, and customer service, we created the finalised list based on FCA Regulated Brokers. The top UK forex broker table is updated monthly based on CFD providers that gain or lose an FCA licence. Other brokers, such as OANDA, Saxo Bank and VT Markets, were considered in this review and may be featured on our other UK comparison page. There are also brokers regulated by CySEC that appear on other comparisons.

Is £100 enough to start forex?

Whether you’re on SaxoTraderGO or SaxoTraderPRO, you’ll find market analysis, trading signals, and breaking news tailored to your chosen instruments. This is all enriched by geopolitical coverage, such as Saxo’s U.S. election resource hub, which provides traders with timely, theme-based insights. It’s clear Saxo’s research isn’t just about information — it’s about actionable intelligence.

Economic events and announcements

The standard account type is for retail traders, while professional traders can use a Pro account. Using a demo account from XTB is an ideal method if you are a beginner learning to trade, as it provides a risk-free environment with live price feeds. XTB provides over 4,500 markets and allows you to demo their xStation5 platform or MetaTrader 4. We liked that the broker also offers future and options markets, which the other brokers lack. For example, on the IG Trading Platform, the options market was easy to access, and the platform seamlessly adapted its interface to show the call and put option pricing. Aside from the app’s good looks, one of its better tools is +insights, which captures all of Plus500’s client data to generate trending assets based on buying and selling pressure.

Once you’ve decided it’s time to close your position, simply navigate to the ‘positions’ tab, select your position and click on ‘close’. In other words, if you went long on GBP/USD, go short by an equivalent amount to close the position – assuming you’ve selected the ‘net-off’ option on our platform, rather than ‘force open’. Throughout the trading day, I monitored price action on the GBP/USD pair. As the market approached a key resistance level, I observed signs of weakening bullish momentum, prompting me to consider an exit strategy.

Compared to crosses and majors, exotics are traditionally riskier to trade because they are more volatile and less liquid. This is because these countries’ economies can be more susceptible to intervention and sudden shifts in political and financial developments. Exotics are currencies from emerging or developing economies, paired with one major currency. 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.

In conclusion, Forex trading in the UK offers individuals the opportunity to participate in the global currency market and potentially profit from fluctuations in exchange rates. It is essential to understand the basics of Forex trading, including how it works, why people trade forex trading for beginners Forex, and the key participants in the market. One of the key skills in Forex trading is the ability to read and interpret Forex charts.

Some of these terms and concepts might be tricky to understand at first but it won’t take you long to get it when you see it in action. The best way to learn the basics of Forex trading is to practice on a demo account and place a few trades. Take a look at the articles below to further develop your skills and knowledge. Most CFDs are traded with leverage because they allow traders to open much larger positions than their account balance would normally allow. In most cases, a micro lot is in most cases the smallest trade you can place, though some brokers will offer nano lots of for smaller account types.

This ensures that the broker operates in accordance with strict financial guidelines, which helps protect your funds and ensures fair trading conditions. If you want to be a good forex trader, you need a good forex trading education. Luckily, there’s no shortage of webinars, workshops and how-to videos on OANDA that can help you learn forex trading forex robot trading 2023 best automated trading robots for free. Once you’ve opened an account, live or demo, you can start to implement some of the forex strategies that we cover in getting started.

1. With all these protections in place, the UK is one of the safest places in the world to trade Forex and other CFDs.
2. The Sydney session gives traders a good and brief idea about the potential weekly trading direction.
3. The difference to the bar charts is in the ‘body’ which covers the opening and closing prices, while the candle ‘wicks’ show the high and low.
4. Out of all the brokers we’ve tested, Plus500 has the best trading app offering a full charting experience on your mobile with 119 indicators, 21 drawing tools, and 13 chart types.
5. Forex also allows traders to make large profits and losses on a small amount of capital through leverage.

Eightcap has gone all in on using TradingView as their sole trading platform choice in the UK, allowing you to benefit from the best charting package available across all the platforms. TradingView gives you access to over 100+ technical indicators, 50+ drawing tools, and 17 chart types, providing an excellent environment if you rely on technical analysis. Most retail traders will use charting tools when trading forex, allowing them to observe and study changes in price over time. Traders will convert us dollars to norwegian kroner often use bar charts or candlestick charts to look at the previous few hours, to a few weeks of price action, depending on the trader’s desired timeframe. The more recent MetaTrader 5 is also popular but also provides access to a wider array of markets such as CFDs and shares.