Forex trading online is a characteristically high risk/high yield form of investing. Thus, it is prudent and necessary to attain a certain degree of expertise and know-how about the ins and outs of the forex trading system before you put in your hard-earned money. Optimizing your forex education will minimize the chances of loss as you begin to develop your trading portfolio.

Only a handful of online forex traders will profit in the beginning of their investment. This is mainly because many novice traders are in a hurry to trade and to get a piece of the over US$4 trillion daily turn over in foreign exchange market. Because of this, these traders do not take the time to learn everything they can before they engage in forex trading. Thus, they suffer losses in their early phases.

For beginners in forex trading, it is important to get to know the basics first before you trade. It is never advisable to go into battle without ammunition. In forex trading, your forex education is your amunition---and shield---against high chances of loss.

You can commence your immersion in forex by reading a book. There are many forex books that can be purchased online. Amazon has several books for its listing under Online Trading. You can also avail of the several free forex ebook that can be downloaded online. A free copy of Introduction to Foreign Exchange from GO Markets can be retrieved by signing up here.

READ: Forex books to read for beginners

Training under an experienced broker can also boost your chances of becoming a successful online forex trader. A number of brokerage firms offer free online training course for those wishing to know more about currency trading. Several of these brokerage firms also offers free forex tips and seminar for beginners.

Nothing can top the experience of trading yourself. As they say in life, experience is the best teacher. But you need not shell out money for the experience. You can avail yourself of a free forex demo account . This way, you can learn how to trade forex in real-time.

The demo account will simulate actual trading activities without risk of losing money. It will allow a beginner to virtually trade on the actual forex market. While your trading using your demo account will have no impact on your portfolio or the actual forex trading, it will let you experience trading as though it does.

The demo account will let you choose your investment as well as purchase your stocks and currency. It will also lose or gain as it responds to what is actually happening on the market. This boost on your forex knowledge can be complemented by asking your broker about you experience with your virtual account. This will give you an edge when you are in the actual foreign exchange market.

You can choose to open a free forex account or apply for a free MetaTrder4 practice account from GO Markets. For the former, you can either choose to open an individual account, a joint account, company, super & trust account . The later is a mirror of the live trading environment and will show you an exact replica with regards to spreads and trade execution.