Sometimes, it may seem that the world of Forex has a pretty high barrier to entry. On top of all of the knowledge you need to have about the industry, you also need to have a certain amount of money to start trading. Not everybody has that kind of cash available to them at all times, which is why we have decided to create a guide for those who want to start Forex trading with $1 or less (or slightly more). We might not be getting into too much detail, but we will be able to provide you with some general action guides and some very specific information regarding where to find what you are looking for.
Getting a free Forex account
One of the best ways to start trading on the markets, without having to make any extra deposits, is by simply getting your hands on a free trading account. You can find the option to open a free account with many brokers online, but not all of the offers will be as good as others. What you need to do, to make sure that you are getting the right kind of broker to work with you, is check some of the many reviews we have offered for you. Opening a free trading account is possible by receiving a no deposit bonus that many large scale and respectable brokers, such as XM, offer. Once you have found the right one, you may start trading with no money, as part of the immensely huge Forex industry.
Something to remember
One thing that not many people realize, is that if you are starting to trade without money, you need to consider a few terms, conditions and details about what is going to happen. The first thing you need to remember is the fact that the no deposit bonus that you receive, when you start to trade, comes with strings attached. While you will be able to enjoy the money you make off of the no deposit bonus eventually, at the point of time when you have made it, you might need to fulfill certain requirements to qualify for its withdrawal. In order to protect themselves, brokers must impose strict limits.
There have been many cases in the past where, after receiving a bonus, the users ended up withdrawing the funds immediately and not trading at all. This effectively meant that the broker simply gave away free money. The longer people kept doing this, the more money the brokers ended up losing, effectively resulting in large scale losses for the businesses and in their eventual closure. This is why now when a broker offers you to trade without deposit, it also means several things. You will have to agree that this money needs to be used for trading and that you will only be able to withdraw the money once you have made a certain amount of income off of it. The numbers and specific conditions are up to the broker, usually, so you will have to do some research.
How to start Forex trading without investment, successfully
One of the first rules of no investment trading is doing your best to avoid high expectations, especially if you are just a beginner. The Forex market is a complex space, with fluctuations and value movements that are not always easily understandable for beginners. The first thing you will have to do if you want to join the market is to start learning about Forex. It might even be a good idea to do so before you start trading with the no deposit bonus, just in case the no deposit bonus use term runs out sooner, rather than later. Now, let’s get back to lower your expectations and why it is important.
Many traders come into the industry expecting to make tens of thousands of dollars from the very beginning. Their expectations are high no matter if they are trading without investment, or with. The thing is, the complicated nature of the market and the complex trading that goes on are not going to be easy to master from the very beginning. You may often get confused and lose money more often than make it. The overly optimistic nature of high expectations means that you will make the mistake of investing too much in a trade that you are not confident of. Managing your expectations means that you will also be able to manage the kind of investment you make. The ability to do so will protect you from making bad investments, and give you a chance to make money with Forex for free, eventually. Even if you will have to do a lot of learning before you get to that point.
One big issue
While the chance to start trading with a no deposit bonus seems like a great opportunity, there is an issue. The issue stems from a psychological expectation that humanity bears towards things it didn’t directly invest in. If you have ever played a free-to-play game, you will know that you are not as invested in it as you would be if you had paid more money for it. The reason is simple – you feel less obliged to actually keep playing it and complete it because you don’t feel like you invested anything in it. The same goes for trading without money. The big risk associated with doing so is that you will simply not care enough about trading since you might feel like the money isn’t really yours.
There is no real way of changing this behavior, beyond simply doing your best to consciously manage how you act when you are trading. Do not make any callous decisions or risky trades, simply because you know that you are not risking your money. You need to remain aware of the money you are investing, the potential it has for benefitting you, and why it might be endangered if you invest it into a bad trade. Doing so will protect you from bad trades in the future.
If you are going to start trading for free, you need to consider the risks that are associated with it. Though, don’t worry about not being able to do so – plenty of brokers out there give ways to newcomers to trade for free. Whether these are no deposit bonuses or matching deposit bonuses. There is always a way to start trading, without investing any of your money, and possibly making a big profit off of that in the future.