Are currency trading and forex trading the same?

Forex trading is currency trading. You simply exchange one nation’s currency for another in the hope of making money when the exchange rates change. The rates are constantly changing due to market news, national events, changes in values on a country’s stock exchange, etc.

At the most basic level, imagine you exchanged some US dollars for British pounds. You might sell $1,000 to buy £650. Within a short time the rate changes in your favor so you change them back again.

Now with the new rate you get $1,010 for your £650. You just made $10 or 1% of your investment.

Open a demo account to start off currency trading

The best way to get started finding out how forex works, is to do some reading online and then open a demo account. A demo account is a practice account where you make trades using play money, most brokers offer a demo account.

Once you’ve acquired some skills, and feel you have a good tested strategy, you can move on to a live account where you trade with real money.

Do not start trading a live account until you’ve practiced on your demo for at least 6 months. While trading forex can be a very nice way to make a living, you can also lose big quick.