Free Forex Trading Course



Welcome to our free forex trading course.

Here we have put down everything we can possibly think of to start your epic journey in becoming a forex trader.

How exciting for you!

This is a serious skill, that has unlimited opportunities for you and your future.

It doesn’t matter what your background is whether you are a doctor or never went to college, this free forex trading course has been engineered to bring anyone up to speed with the market lingo and how the markets work.

We have worked with students at Universities and professional athletes to dentists and ex-army, leaving them with a sure-fire free forex trading course to really understand the markets, how it works and how to avoid being easy targets by the market makers.

No more wasting money on information, no more wasting time, it’s time for you to act now and begin your journey.

How To Use This Free Forex Trading Course:

The structure of this course is set out for you to be challenged and complete each section, page by page, with quizzes at the end of each section to establish your knowledge further.

At the top of each page, will be a submenu for you to navigate your way through the course or continue from where you left off.


Free Forex Course Menu Desktop


Free Forex Course Menu - Mobile


At the bottom of each page, you will see a previous and next button, this will navigate you to the previous and next lessons within the same topic.

Screenshot 2019 08 03 at 17.43.35 | Alphaex Capital


At the bottom of each page, you will also see a quiz – complete this and you will be automatically taken to the next page to progress your learning.

By completing these, not only will you progress onto the next topic but also cement the lesson deeper within your memory.

Free Forex Trading Course Quiz Example


Why This Free Forex Trading Course?

In this course, we will provide step-by-step lessons in each aspect of trading to really hammer in the knowledge we share for free.

You can take as long as you want to learn and you can revisit all the pages whenever you want.

IT’S-A COMPLETELY FREE FOREX TRADING COURSE!

Even better, introduce a friend to our website and get a learning buddy – go through the material and learn together.

We’ll be surprised that our free forex trading course would not be beneficial to you. We have seriously pulled back the curtains to some of the most common miss taught methods of trading!

We ACTUALLY trade. The people behind this course have been in the trenches, trading successfully for years in both the finance industry and privately (some have retired from industry).

You can then test one another and help explain to each other how things work.

Learning is and will be fun, so make sure you complete ALL the pages and ALL the quizzes!

Don’t be shy to repeat the quizzes; they help translate the information to knowledge and start engraving the lessons to memory.

All the quizzes are designed to really deepen your understanding of each topic.

Also, go buy or grab a notebook.

Take as many notes as possible, do not print off the course and highlight the sections. This is lazy and you will not learn much.

By writing notes down, you go through a specific process to help deepen your learning and memory of the topic.

These are:

Processing the information

Translating that information to understandable snippets

Physically writing down the new understanding to paper

Re-reading and reaffirming the new understanding on a physical piece of paper.

Do this in every section, you’ll have your own set of personalised notes and you will walk away with a great base of knowledge.

In addition to writing down notes, completing quizzes and learning with friends. We will set specific tasks where you can try to replicate the information taught on a demo (or live account) in real time.

Free Forex Trading Course For Beginners - Man Taking Notes

The advantage of learning to trade is you can learn in real time without risking a single penny.

By following these guidelines – you will learn how to trade the forex markets for free and be able to take action in becoming a profitable trader.

If you are willing to just give us 100% of your attention to better yourself, learn a new skill and develop a deep understanding – then you will see the benefits we offer for FREE. It’s a win/win situation for you.

Question: Have you already started to learn about Forex trading?

If yes, we suggest you start right at the beginning. We have exposed techniques on how to actually set up support and resistance levels, how to actually execute trades and many more golden nuggets in this course.

So don’t skip a page, it will either serve as a nice refresher or open up your mind to a better way of trading!

If no, then you are lucky to be starting learning how to trade forex from scratch with the right information to build on.

Please enjoy this free forex trading course and we can’t wait to hear from your results in the near future!




Trading Mindset

Trading Mindset For Beginners



What Is A Trading Mindset?

As much as we’d love to say that you can just learn the concepts in our course and off you go to trade your capital.

We must go over an important aspect of trading and that is the psychology of it.

Here is a quick lesson on the psychology of trading – you have to be:

Stubborn

Relentless

Persistent

Systematic

These qualities will help in your trading career – above all they can be taught over time by introducing habits and avoiding common mistakes.

To succeed you need a systematic (rule-based) approach that has been built from failure and greater successes

We have taught you the ultimate money management rule already, just as a quick heads up – this is called Kelly’s Criterion.

Guess what?

Everyone loses money trading whether it’s forex, stocks, bonds or cryptocurrencies!

So never be disheartened when you lose, accept it and move on.

Take this quote from George Soros – one of the best hedge fund managers in the world:

It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right, and how much you lose when you’re wrong.

Absolutely on point here.

Stick to your game plan!

You have learnt a lot, yet you think it’s a good idea to steer away from what you know works.

This is a huge mistake as this is where the gambler in you wants to jump out for that quick spike that is “easy money”.

You have a plan for a reason, it serves as multiple tools:

Risk Management

Learning from mistakes

Keeping a record of trades, so you don’t over trade

Use the plan to change and adapt to different scenarios.

Every time you deviate from the plan (that you know works), your increasing the risk of you making money.

Our job as traders is to reduce the risk taken and increase the profits received.

Be patient!

Back to the above example, you see a quick spike and you want to trade it for easy money… Well, on the other side that is liquidity for someone getting out of their position – if you get in too high, which is most likely, you will suffer a swift loss.

In trading, you must let to opportunities scream and shout to you – do not go fishing for trades, this is where you will force a trade and enhance the odds of losing your money.

When you know something is working, stick to it.

Even if it means you can see the set up forming for a perfect trade but must wait for a day before it has completed.

It is better for the market to tell you to trade than to tell the market you want to trade.

Risk Management, Risk Management, Risk Management!

Risk management is there for two reasons:

Protect your capital from the markets,

Protect your capital from your emotions.

Risk management must be ruthless and definite.

If you are in a losing position and you keep moving your stop loss to avoid the losses, you’re just going to get margin called – which will affect your capital and your emotional trading terribly.

Trade when you see confirmation, not when you think it will be confirmed.

This is very important.

You must wait for the market to confirm your trading idea before you deploy capital. The markets will stay solvent more than you can.

Trade your own game!

To put it bluntly, no one cares about you and your trading account apart from you.

Don’t listen to what the news is telling you, what is on CNBC or Bloomberg, what analysts are spewing out, what people on internet forums are doing because at the end of the day – they may trade differently to you and affect your trading.

Stick to what you know and only read official data released by central banks and governments.

Only use social media or internet forums to socialize and look at sneezing panda videos.

Here are some extra tips:

You must accept that you will lose trades. This is normal. No one trades at 100% accuracy. Even with a 10% win rate, you can be profitable

Don’t focus on winning or losing trades. Be objective and trade to your plan and strategies. This is your edge, so don’t change it!

You will often hear “Never love a stock. Never hate a stock”. As a professional trader, you are neutral and don’t care about the asset. The objective of each trade is to make money. You do not invest in the Euro because you love Spain and have treasured memories there.

Control your emotions, like point 2, you can’t eliminate the emotional side of trading but if a loser is a loser then cut it short!! If you miss a trading opportunity, do not chase it!

Start slowly. Trade a couple of times a day, week, or month and ALWAYS review each trade. Ask yourself – did I follow my plan?

The Secret Behind The House’s Edge In Vegas

Why do you think 90% of people lose in Vegas?

It’s down to human psychology…

Let us explain.

So if you are on a ‘hot streak’/winning, you are more than likely to maintain the amount you bet. So if you are betting $50 a time and winning, you will stick to $50 stakes.

Why? Well if you are winning, why change it?

Whereas if you are losing, or switched from winning to losing, there is a higher chance of you to increase your stake size.

So if you were staking $50 – and you lost a couple of times, most people will bet higher to recover their losses.

This is because people want to walk away from a casino or Vegas saying they won money when the casino’s know that inside of us all is a little voice that encourages to bet more when we lose and keep things the same when we win.

We are risk takers when we are losers and we are risk averse when we are winning.

It makes no sense, but it’s why the house always wins.

What Does This Have To Do With Forex?

Taking risk remains the same psychological battle as gambling.

We have the tools to not only manage this battle but to also switch it around.

Our downloadable tools help you to protect your portfolio whilst you are “cold”/suffering from losing trades and enhance your profitability for when you are “hot”/winning trades more regularly.

This alone will improve your trading performance as it is the exact tools used by institutions.





Trading Mindset Quiz

A bit of a deviation from the more technical focal point of the course, however, psychology play a large part in your trading. Take the “Trading Mindset” quiz to reinforce today’s lesson.

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You Must Trade Market [BLANK], Not What You [BLANK] Will Happen

Correct! Wrong!

By Avoiding Rules/Game Plan, What Chances Increases?

Correct! Wrong!

What Is Our Main Job As Traders?

Correct! Wrong!

As A Beginner Trader, You Should..?

Correct! Wrong!

As A Trader, You Must..?

Correct! Wrong!

Everyone Loses Money When They Trade, True or False?

Correct! Wrong!

When Trading, You Must Not Focus On Your Wins/Losses But Be..?

Correct! Wrong!

Which Of These Will Not Help You With Trading

Correct! Wrong!

Another Important Trait To Have Whilst Trading Is To Be..?

Correct! Wrong!

To Lay The Foundations Of Successful Trading, What Must Be Laid?

Correct! Wrong!

Trading Mindset: The Quiz!
PASSED
Congratulations, you have passed the quiz! Please, continue to our next section to continue your learning!
FAILED
Oh no! Don't worry though, you can retake the test as many times as you want. The answers are in the lesson above and it is important you get a good understanding by completing these quizzes.

Share your Results:




Kelly’s Criterion

Kelly's Criterion Performance Management



Kelly’s Criterion: The Art Of Trade Management

The job hedge fund manager is to manage its’ traders and ensure it’s strategies are followed correctly with optimal trading conditions.

Now, how do you manage your traders?

Simple, introducing Kelly’s Criterion.

This simple calculation essentially rewards performing traders and reduces risk (and capital) from traders currently not performing.

Its math is quite involved with communication and information theory, mostly dealing with probabilities.

Behind the maths, by placing trade position sizes according to Kelly Criterion, you give yourself an edge and can maximize the returns in the long term.

Here is the formula which has been tailored to trading:

K% = W-[(1-W)/R]

Based on your past trading performance, the Kelly Criterion tells you the position sizes you should be taking on your next trade.

Therefore, K% can be expressed as edge/odd. For obvious reason, you don’t want to bet in any game where the expected payout is 0 or negative.

The Inputs to the Kelly Criterion are as follows

W = The winning probability factor / the probability of a trade will be a winning trade

(1-W) = The Losing Probability Factor / the probability that a trade will be losing

R = The Win / Loss Ratio

The Rules

If R remains constant K increases as a traders W increases i.e. The recommendation is to stake larger amounts if a trader is right more of the time

If R remains constant K decreases as a traders W decreases i.e. The recommendation is to stake smaller amounts if a trader is right less of the time

If W remains constant K Increases as a traders W/L Ratio (R) improves i.e. The recommendation is to stake larger amounts as a trader makes more money from each trade.

If W remains constant K decreases as a traders W/L Ratio (R) worsens i.e. The recommendation is to stake smaller amounts as a trader makes less money from each trade.

In the long term, probabilistically – your trading account will have the maximum return possible by using this method.

So it is also common to use a “half Kelly” or half the position size calculated from Kelly Criterion to reduce the portfolio volatility.

The sizing of your transaction is equally important if not more than what you trade.

While most of the trading world talk about what to buy, there is barely any attention to how much you should be trading.

But for every transaction, it always consists of the following elements: what (asset) to buy/sell, when to buy/sell, and how much to buy/sell.

We have gone through some risk management and we hope it has stuck with you as risk management is essentially one of the golden nuggets very little people talk about properly.

Especially Kelly’s Criterion.

However:

Risk management is entirely down to you.

There is no right or wrong way of doing it.

It’s entirely based on your risk tolerance, some of you may prefer 5% risk other maybe 30% risk.

Now we understand what we can do to protect our capital, it is time to learn how we can find trading ideas daily.

Step By Step Guide

Step 1: The Dashboard

Alphaex Capital Performance System Dashboard - Kelly's Criterion Example

As you can see you have the input section to the left and the output selection to the right.

Step 2: Input Section

Alphaex Capital Performance System Dashboard - Kelly's Criterion - Input - Example

In this section, we note down EVERY trade we have performed. How much was made and how much was lost then we add a 1 in the Win/Loss Score column.

This will total up our W/R and allows for automatic Kelly’s Criterion computation.

Step 3: The Computation

Alphaex Capital Performance System Dashboard - Kelly's Criterion - Computations - Example

If done correctly, the formula will work out your Win %, Loss%, Total Win in Money Terms, Total Loss In Money Terms, Win/Loss Ratio, Kelly’s Criterion % Increase or Decrease.

Step 4: Kelly Criterion Output

Alphaex Capital Performance System Dashboard - Kelly's Criterion - Output - Example

As you can see, this output suggested that based on the current performance this trader should stake 22.79% of their capital on their next trade to maximise performance.

That is it. Quite simple really with the spreadsheet we’ve provided.

To give you an overview, here is an example based on some test data for the dashboard.

Alphaex Capital Performance System Dashboard - Kelly's Criterion - Example - Dashboard

This is key to performing whilst you are at your best and limiting yourself when you are not performing.

Remember

This tool is pivotal in your trading plan. This tool will help you perform at your optimal at all times, winning or losing.

We hope from the examples given, you can see the significance of using this tool and its outcomes is there to protect you and your capital.

Don’t be someone in Vegas gambling away and chasing losses.

Download Our Spreadsheet For Free, Unlock Below & Support Us.

[sociallocker id=”9982″]DOWNLOAD PERFORMANCE SPREADSHEET – CLICK HERE[/sociallocker]





Kelly’s Criterion Quiz

Congratulations, you have gone through one of the most advanced, yet powerful risk management techniques available.

Take our “Kelly’s Criterion” quiz to turn this information into useful knowledge.

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If A Trader Is Wrong More Than Correct When They Trade, What Does Kelly's Criterion Recommend?

Correct! Wrong!

What Does (1-W) Stand For In The Formula?

Correct! Wrong!

What Does W Stand For In The Formula?

Correct! Wrong!

Who Uses This Formula Most Commonly?

Correct! Wrong!

What Does R Stand For In The Formula?

Correct! Wrong!

What Is Kelly's Criterion?

Correct! Wrong!

If W Worsens, What Happens To K%?

Correct! Wrong!

If A Trader Is Correct More Than Wrong When They Trade, What Does Kelly's Criterion Recommend?

Correct! Wrong!

If W Improves, What Happens To K%?

Correct! Wrong!

What Is Kelly's Criterion Formula?

Correct! Wrong!

Kelly's Criterion: The Quiz!
PASSED
Congratulations, you have passed the quiz! Please, continue to our next section to continue your learning!
FAILED
Oh no! Don't worry though, you can retake the test as many times as you want. The answers are in the lesson above and it is important you get a good understanding by completing these quizzes.

Share your Results:




How To Scale Trades

How To Scale Trades | Alphaex Capital



Another well-used method for risk management is understanding how to scale a trade in and out. We call this pyramiding too and this is the reason…

How To Scale A Trade Like An Expert Trade | Free Forex Trading Course

As you can see that the base of the pyramid is the largest initial position followed two more opportunities to scale in.

The advantage of applying this method is that you instantly reduce the risk by testing the market direction with an initial 50% position size.

If you get the wrong timing of the execution, or the trading idea isn’t valid – you will learn just as much with 50% as you would with 100% trade size. This is a common tactic used by longer-term investors.

This method is also applied to trading but on a more rapid timeframe.

The 25% position deployments are usually when either the market pulls back, penetrates a near-term support/resistance level, or any other confirmation indicator gives the go-ahead, giving us a better price and confidence that the trading idea is validated.

Once you are fully scaled into a position, you also at 100% risk. However, by this point, the market has validated your ideas 3 times – which is very encouraging.

With full position deployed – it is time to talk about scaling in more capital.

Now that you are in a validated trade, thanks to Mr. Market, you can scale your position greatly using the same metrics as pyramiding your trades in.

This is how you can truly capture a trend and consistently profit from it and makes one good short-term idea into a hugely profitable long-term trade.

By applying the 50/25/25 rule you’ll be waiting for 3 areas the market validates your trade. Meaning you can scale in quite quickly. However, you can adjust this to as you feel comfortable. You could even use a rectangle for riskier trades – 25/25/25/25.

Let’s take an example:

Scaling A Trade Example | Free Forex Trading Course

As you can see in this example by using breakouts from the support we were able to scale all the way down to 175%.

Although at 175% scaled into the trade, this was the absolute bottom and we got stopped out.

Let’s take a look at how it compared between scaling into a trade and opening a full position from the start.

How To Scale A Trade Example Vs Normal | Forex Trading Course For Beginners

As you can see from the results by pyramiding and scaling into a trade we captured an extra $362.5 profit whilst risking the same.

Scaling into trades is best when you are in a trade for a longer time period as this builds your position over time, whilst reducing whole market risk.

Scaling out of a trade is the same principle, however, instead of adding and building on to your position, you take away your underlying investment and let your profits run a while longer.

The aim is to scale out and locking in profit over time.

So if you were at 100% invested risk, you can lock in your profit by either:

  1. A) Moving your stop loss higher
  2. B) Partially selling your position to reduce the amount invested.

A is used more frequently than B due to its simplicity plus it will keep the pip value the same going forward.

B is used to move the capital from one position to invest in another, it frees up traded capital.

Both have the same end result.





How To Scale Trades Quiz

The final phase of our risk management is now complete. Time to transfer this information to knowledge. Take the “How To Scale Trades” quiz below.

0%

At What Ideal Levels Would It Be Best To Pyramid Into A Trade?

Correct! Wrong!

What Is Pyramiding Trades?

Correct! Wrong!

When Pyramiding A Trade, What Is The Ideal Initial Trade Size?

Correct! Wrong!

What Rule Should You Follow When Scaling In A Trade?

Correct! Wrong!

When Is It Optimal To Pyramid Into A Trade?

Correct! Wrong!

What Is The General Pyramiding Rule?

Correct! Wrong!

What Is The Benefit Of Scaling A Trade In?

Correct! Wrong!

What Is The Purpose Of Pyramiding?

Correct! Wrong!

Scaling Into Trades Is Best For?

Correct! Wrong!

When Pyramiding A Trade, What Is The Ideal Follow Up Trade Size?

Correct! Wrong!

Scaling Trades: The Quiz!
PASSED
Congratulations, you have passed the quiz! Please, continue to our next section to continue your learning!
FAILED
Oh no! Don't worry though, you can retake the test as many times as you want. The answers are in the lesson above and it is important you get a good understanding by completing these quizzes.

Share your Results:




Best Forex Trading Plan

Best Forex Trading Journal



What Is The Best Forex Trading Plan?

It’s all about being able to record your results in the most time-efficient and accurate manner that also allows you to learn and adapt from your mistakes.

Having the best forex trading plan allows you to quickly identify any mistakes and rapidly stop them from happening again.

The difference between a plan and a journal is that a trading plan is used to get you out of bad habits and perform better each time you record data. Whereas a journal you are just keeping track of your trading habits.

As traders, it is important that you understand exactly what you did right or wrong so you can reinforce your trading habits and rules. Thus making you unconsciously competent.

By reviewing each trade at the end of a trading session, or when you have time within the same day – take notes on what went right, why you entered and why you exited/added positions/move stop loss.

Some reasons may sound repetitive to you, which means you are on the right track to becoming consistently profitable.

You will be able to use these trade reviews to also analyze what went wrong and identify potentially troublesome patterns that you will be able to eradicate with ease.

As part of the best forex trading plan by Alphaex Capital we have included two checklists, a weekly and daily checklist to prepare you for your trading sessions.

Weekly Forex Checklist

You must go through this checklist until you are unconsciously competent and automatically do this by habit. Below is a checklist that must be completed weekly so you can gain a bigger picture view of your traded assets.

Step 1: Reviewed COT Report?

  • Which currencies are gaining momentum
  • Have they changed net positions? (i.e – net short to net long)
  • Are the net positions getting stronger or weaker?

Step 2: Reviewed Assets Weekly High & Low?

  • Plot the highs and lows of the previous trading week to set a trading range.

Step 3: Updated Trend Analysis?

  • Is the market trending?
  • Has it reversed since last week?

Step 4: Reviewed Any Chart Formations?

  • In the bigger picture is there any chart formations forming/formed to look out for?
  • If so plot them and take note of the neckline levels to watch out for.

Step 5: Reviewed Upcoming High Impact News?

  • What high impact news is being released this week?
  • Is the general consensus expecting better or worst results?

Answer these questions and input them in your trading plan for reference – this will keep your bigger picture view in check whilst you look for trading opportunities.

Daily Forex Checklist

Step 1: Reviewed Upcoming High Impact News?

  • What high impact news is being released today?
  • Is the general consensus expecting better or worst results?
  • Note the release times and avoid trading around these times.

Step 2: Performed Kelly’s Criterion?

  • If you didn’t do this at the end of the last trading session, do this now.
  • Adjust risk/position size accordingly

Step 3: Reviewed Yesterday’s High and Low

  • Plot the highs and lows of the previous trading day to set a trading range.

Step 4: Updated Trend Analysis?

  • Is the market trending?
  • Any areas that are significant to trade?

Step 5: Reviewed Any Chart Formations?

  • In the bigger picture is there any chart formations forming/formed to look out for?
  • If so plot them and take note of the neckline levels to watch out for.

Answer these questions and input them in your forex trading plan for reference – this will keep your bigger picture view in check whilst you look for trading opportunities.

How To Use The Best Forex Trading Plan?

Each month, you will review and compile a table of all of our trades for your trading plan.

You will then rank each asset based on performance and PnL. This allows you to reflect on which assets you performed in and underperformed in.

When you review each trade at the end of the month, treat it like a self-assessment.

Best Forex Trading Plan PnL Table | Free Forex Course

You can capture the above information from your MT4 platform’s own data.

For each trade you spot, you will update the trading pages individually. This is done by entering the data in the boxes and placing a print screen of your trading analysis prior to or at the execution of the trade.

You then list the trade confirmations.

Best Forex Trading Plan Confirmation | Free Forex Trading Course

After you have exited your position, we review it by pasting the post-trade screenshot in our journal.

This is then followed by management and reflection questions to help unlock and deepen your understanding of every trade you have executed.

Best Forex Trading Plan Review | Free Forex Trading Course

Download The Best Forex Trading Plan PDF & Word

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Download Template (Word)

Download Best Forex Trading Plan – Word – Template

Download Example (PDF)

Download Best Forex Trading Plan PDF – Example

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Having a trading plan is significant if you want to progress as a trader/investor. It is important to reflect and deepen your knowledge by being able to elaborate on each trade you do. This will certainly help you transition into the unconsciously competent levels of your understanding.

Remember the key benefits here:

  • Keeps a record of each trade with analysis to reflect on;
  • Spot patterns / trading decisions that lead to losses easily and earlier;
  • The more you keep a record and enter the details, the better it will become at learning the trading strategies.
  • Takes you to the unconsciously competent level – being able to spot trading patterns quickly and able to take on more opportunities.



How To Set Up The Metatrader 4 Platform

How To Set Up The Metatrader 4 Platform - Alphaex Capital



In order for you to maximise this free forex trading course, we believe you must have at least a demo account opened and for you to follow the examples on your account as you go along.

This helps you recognise patterns, usages of our topics in the course and step by step, day by day, build confidence.

The demo account is the EXACT same as the live account but with virtual money. So let’s build your demo environment first before we get started.

Step 1: Download MetaTrader 4 – you can download from any broker of your choice or directly from the website.

Important note: Make sure it is MetaTrader 4 and not MetaTrader 5.

Step 2: Install MetaTrader 4 on your PC or Mac.

Step 3: login using your account details

Step 4: Close all windows when opened

Step 5: Open up the EURUSD chart.

Step 6: Go to preferences and make the chart clearer and cleaner.

Step 7: Once you have the chart set up to the way you want you can save it as a template – this will allow you to easily load up your preferences on every chart.




What Is A Forex Broker

What Is A Forex Broker 2019



What Is A Forex Broker

A Forex broker is a company that acts as the middleman between you and the market (hence broker part).

The Forex broker’s obligation is to provide a secure and regulated environment, combined with the best execution policy, to provide regulatory approved standards of providing a service.

Features of a top forex broker:

Regulated in your country.

It doesn’t matter where they are based generally. As long as they are regulated in your country, either fully or approved via a regulatory passport, then this means you are protected.

Companies in other countries that offer services to foreign countries must have an approved status in each country they do business with, otherwise, as a client, you will not be protected.

For example, in the UK every company that offers these services MUST be regulated by the Financial Conduct Authority (FCA). If the broker is trying to get you on board and you are from the UK – you must avoid this company if they are not regulated by the FCA.

Pay structure

It is better to pay a commission per trade than it is a spread. The commission allows brokerages to offer reduced spreads which will save you a fortune in trading fees/mistakes.

With 0 spreads, you will enter and close at the price you request.

With a 2-pip spread, you will enter and close at the price you request +/- 2 pips. This can be a case of being stopped out too early.

No forms of aggressive marketing

Marketing is essential for any business but those brokers that offer you bonuses that are adding to your account based on your initial deposit or even no-deposit promotions. These may look good on paper, but these marketing tactics are not good. The major brokers won’t offer these promotions as they normally have a negative effect on the user’s experience with the company and forex trading in general.

Bonuses and promotions are only okay if they are a reduction in commission or fees.

Swift Anti-money Laundering procedures

One of the main things you must do, which is by law, is to provide documents to the brokerage to comply with the law. The brokerage has a legal obligation to run checks on you to ensure that the service is fit and proper for you. This is completely normal. Just like opening a standard bank account.

You want a broker that can process anything involving admin as swiftly and efficiently as possible.

Offers Direct Access / Electronic Communications Network (ECN)

A few years back brokers would have dealers who would receive your requested order then fill it to the market themselves. This caused a delay in execution and allowed brokers to take advantage of market movements. This dealing desk would be able to generate extra profit based on the order execution from your terminal and from actually executing the trade in the market.

Now, thanks again to technology dealing desks have been eradicated by the bigger brokerages by offering direct access to the market. This is important because it means you will get the best-executed price possible at Market Order.

Dealing desks still exist in all brokerages, but they are mainly used for calling into a dealer to place a trade over the phone.

An ECN broker is preferable because it reduces the number of interactions between the client and the direct Forex market. Giving you the best possible trading conditions that favour both you and the broker.

Biggest broker myths

The broker makes it hard for me to withdraw/ blocks me from withdrawing.

We’ve seen this written on so many reviews of brokers and it’s simply not always fair on the broker. As discussed, the brokers require documentation to process and complete your accounts – some customers do not like doing this and get frustrated with the extra level of admin (although this is a legal requirement from both the customer and the broker).

Most brokers will process a fully verified account and send payment within 24 hours.

My broker hunts for my stops.

Absolutely not. No broker hunts for your stops – market makers and institutions do that.

Yes, it is true, if you place your stop loss or take profits at areas of high amounts of liquidity – this is because they have huge orders that need to be filled.

Don’t worry though, you will not be a victim to this common error.

We will show you how to avoid this and also take advantage of it.

How to open a broker account

Forex brokers will generally have the same step by step process of registering you as a client. Below we will us Admiral Markets, who are our recommended broker – plenty of benefits.

Not got a broker yet? You can read our Admiral Markets Review because we rated them highly, and belive they are one of the best forex brokers around!

Let’s begin:

Step 1: Go to the website and find the Create Account button

You can complete this process at the same time by clicking here: https://www.alphaexcapital.com/recommends/admiralmarketslive/
Screenshot 2019 08 09 at 13.28.03 1 | Alphaex Capital

Step 2: Enter your details

Screenshot 2019 08 09 at 13.28.14 1 | Alphaex Capital

Step 3: Verify your account and complete the rest of the details. It’s as easy as that!

Completing A Broker Account

Tip on demo account money

Please only input the amount of money you can afford to invest down to £1,000 or $1,000.

For example, if you want to invest with £100 – please only add £1,000 on your demo account. Or if you want to invest £50,000 then please add £50,000 on the demo account.

This is important because the whole point of this free forex course and a demo account is to be able to easily and seamlessly transfer your abilities from the demo to the live account in the best way possible.

This will help you get used to the market moving against you and with you for a profit with the amount of trading size you would be using in the live environment.

By adding huge amounts of money that are 2x, 5x, 10x the value of your initial deposit – your mindset will not be adjusted to the lower value and could make poor, avoidable, mistakes.





What Is A Forex Broker Quiz

It’s good to get an overview of a forex broker and their role in your trading career. Take out “What Is A Forex Broker” quiz to lock in the information gained today.

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What Is The Key Feature Of An ECN Broker?

Correct! Wrong!

What Is Important For A Forex Broker To Complete When You Open An Account?

Correct! Wrong!

What Does ECN Stand For?

Correct! Wrong!

Do Brokers Hunt Your Stops?

Correct! Wrong!

When Opening A Demo Account, It Is Advised That You Should?

Correct! Wrong!

Do Respectable Brokers Prevent You From Withdrawing Money?

Please select 2 correct answers

Correct! Wrong!

What Is A Forex Broker?

Correct! Wrong!

How Does A Forex Broker Make Money?

Correct! Wrong!

Should A Forex Broker Be Regulated?

Correct! Wrong!

What Is A Forex Broker: The Quiz!
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Congratulations, you have passed the quiz! Please, continue to our next section to continue your learning!
FAILED
Oh no! Don't worry though, you can retake the test as many times as you want. The answers are in the lesson above and it is important you get a good understanding by completing these quizzes.

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