Simulated Forex Trading: Why It Is Vital For Traders

Simulated forex trading, also known as paper trading or demo trading, refers to a risk-free environment where forex traders can test strategies, study market dynamics, and navigate trading platforms with no risk of incurring real financial losses.

We have written this article to underline why, if you trade, it is vital to simulate all aspects of your forex system, from strategy to execution, before trading with real money. A simulated environment acts as such a safeguard.

Read on to learn about the merits of simulated forex trading and why it is crucial for traders of all levels.

Understanding Simulated Forex Trading

A simulated trading environment acts as a bridge, enabling traders to transition from theoretical knowledge to practical application. Seven key advantages of simulated trading compared to a live trading environment are highlighted in Table 1 below:

Advantages Of Simulated Trading Over Live TradingSimulated TradingLive Trading
1. Fosters a deep understanding of market dynamics with no risk
2. Engagement with real market data without financial exposure
3. Allows for error and learning without financial repercussions
4. Builds confidence in a trading system including trade execution & decision-making
5. Develop, test and refine trading strategies in a secure and risk-averse setting
6. Analyze and learn from trading results without actual financial implications
7. Learn the functionalities of a trading platform before using real money
Table 1.

Most reputable online brokers offer simulated forex trading, each with a varying degree of features and user interfaces. We will cover this in the section about which platforms provide the best simulated forex trading.

The Benefits Of Simulated Trading For Traders: In-Depth

In this section we will cover in detail, each of the seven benefits of demo trading identified in table 1.

Build a deeper understanding of market dynamics without financial risk

Simulated trading platforms allow traders to encounter market dynamics where currency movements, affected by geopolitical events and macroeconomic indicators, can be observed. Without the threat of real financial losses, traders can focus purely on market education including:

  • Developing a real sense of market trends and patterns
  • Navigation of varying market conditions and scenarios
  • Understanding volatility and how to manage it effectively

Engage with real market data without exposure to your capital

Although actual capital is not at risk, simulated forex trading is not just a hypothetical scenario; it is based on real-time market data.

Forex traders are still engaging with live market conditions and, witnessing first-hand how various currency pairs move in response to actual economic data and news events. Being an FX market participant without the risk of capital exposure still provides a genuine feel of the market’s nuances.

a screen displaying market data

Allows for errors and learning due to the risk-free environment

Mistakes are an inevitable aspect of any learning journey. Unfortunately, mistakes in financial trading have consequences, namely a fall in capital on your trading account.

Within the safety of a simulated environment, currency traders can make errors without catastrophic consequences; instead, the mistake turns into a lesson that can be learned from. It nurtures growth, resilience, and a deeper understanding of trading.

Builds confidence in your trading system, including trade execution and decision-making

Continual practice in a simulated setting will solidify a trader’s conviction in their trading system. As they continually apply, test, and adjust their approach in a demo environment, confidence in executing trades and making timely decisions will grow.

Trader confidence, honed risk-free, is a significant advantage when transitioning from simulated to live trading. Compare this to a newbie trader throwing themselves straight into the pressure of a real money-at-stake environment with no practice. Indeed, the confidence derived from successful simulated trading:

  • Reduces the likelihood of impulsive and emotionally driven decisions in the real market
  • Prepares traders mentally and strategically for live market scenarios

Enables the development, testing and refining of trade strategies in a risk-averse setting

A simulated trading platform acts as a sandbox for forex traders. Within its confines, you can:

  • Develop new trading strategies
  • Test and validate the effectiveness of strategies
  • Make necessary adjustments and refinements based on outcomes
  • Ensure that the strategy is robust and applicable to real market conditions

By optimizing their approach without financial setbacks, FX traders can ensure when trading with real money, strategies are well-calibrated.

Analyze and learn from trading results without financial implications

Post-trade analysis is a cornerstone of effective trading. In a simulated trading environment, a trader can dissect their performance, understanding both trade successes and failures. Without the emotional strain of real money at risk, this introspection is more objective and constructive, setting the stage for continual improvement.

a forex trader analyzing trading results

Permits familiarization with trading platforms and tools

Every trading platform has its unique layout, tools, and features. Etoro has its own proprietary trading platform which is different to Interactive Brokers, which in turn is different to It is vital to master your chosen platform to maximise trading efficiency. Forex demo-trading accounts serve as a testing ground, giving forex traders the time and opportunity to familiarize, practice, and master platform-specific functionalities; ensuring they are platform experts ahead of trading a live FX market.

What platforms offer the best simulated forex trading?

Most reputable online trading platforms cater to the needs of traders looking for simulated trading functionality. Some of the notable ones include:

  • Etoro: A broker with its own propriety forex trading platform that provides demo trading accounts
  • MetaTrader 4: A platform used by many online brokers in the U.S., including and IG, and renowned for its user-friendly interface and comprehensive analytical tools
  • Interactive Brokers has a proprietary platform called TraderWorkStation TWS with a simulated trading environment.
  • TradingView: Known for its wide variety of technical analysis tools and social networking capabilities

Each platform comes with its unique features and capabilities, catering to different needs. For more details on forex trading software including platforms, we have a written a guide here.

Drawbacks and Criticisms

Despite the obvious benefits we have identified, simulated forex trading, it is not without its criticisms and drawbacks.

The lack of emotional involvement in a simulated environment can be a drawback and may:

  • Lead to a lack of accountability for trading decisions
  • Result in a skewed perception of trading risk and reward

Successful trading in the confines of a demo trading environment may result in overconfidence in live trading due to:

  • Success in a risk-free environment not necessarily translating to live trading success
  • Possible neglect of risk management strategies due to simulated success

There are limitations in simulating real market conditions and include:

  • An inability to replicate the psychological and emotional pressures of live currency trading
  • Potential discrepancies in data and market conditions between the simulated and live environments

A very good resource is available at Investopedia that further highlights not just the pros but also the cons of paper trading.

The Difference Between Backtesting and Simulated Forex Trading

Another type of strategy affirmation is backtesting, and like simulated trading is an important verification process used by traders before deploying a new forex strategy in live trading.

Whereas simulated trading, is trading a non-live version of the current forex market, backtesting is the use of historical price data to test a strategy and see how it would have worked in past market conditions. The two however, do work hand-in-hand.

The MT4 and MT5 (Meta Trader) based platform used by many online brokers has their own strategy tester that can be used for backtesting with historical data. It has a 90% modeling accuracy and although useful is not as reliable as the 99% accuracy available through external backtesting software that interprets data, such as Birt’s Tick Data suite.

Many traders will use both testing methods. They will put a prospective forex strategy through a rigorous backtesting trial to see if it is profitable. They can then undertake further diagnostics by putting the strategy through it’s paces in a simulated market environment using live current market prices. The trader can then adjust and improve the performance of the strategy, all in a safe no risk environment.

A notable concern with backtesting is overfitting. Overfitting happens when a strategy is fine-tuned to perfection on historical data but fails to replicate those outcomes in real-world markets.

We have an in-depth written resource here at Axcess FX about backtesting as part of creating a profitable and reliable automated trading strategy.

How To Transition From Simulated Trading To Live Trading Effectively

We have identified four areas you should focus on to ensure a smooth transition from simulated to live trading. If you can adhere to them, you have given yourself every chance of making real money.

  1. Gradually introduce real capital into the mix by starting with a smaller than normal trade size. It will allow you to open the door to live trading while maintaining an even more conservative risk management strategy than you are used to.
  2. Continue to analyze and learn from a live trading experience instead of reducing focus on this important part of a robust trading system.
  3. Be mindful of the psychological and emotional differences between simulated and live trading. It may not be evident at first, but if you start entering and exiting trades without adhering to the rules of your tested strategy and risk management process then take a step back.
  4. Ensure all forex trading strategies tested in a simulated environment are adaptable, with room for adjustment and not overfitted before you start trading live.


We hope that this article has convinced you of the merits of simulated forex trading before moving into a live trading environment.

It is all too easy, especially for newcomers, in a desire to start making money quickly, not to build a reliable forex trading system. Simulated trading is your safeguard to jumping the gun. If you combine it with backtesting you will be well placed for a chance at success.

Related Resources

Written by Chris Gillie


Chris Gillie is the founder of Axcess FX, a forex software review and research website. He is a former investment banker who worked in FX Sales on the UBS London trading floor. Chris has been using forex trading software as part of his trading set-up since the late 2000s and the embryonic days of MetaTrader and the MQL coding language.

What Are The Benefits of Forex Trading Tutorials

The benefits of forex trading tutorials range from getting beginners quickly up and running with trading basics, to advanced training for seasoned traders, looking to improve in a specific type of technical analysis.

Tutorials are sufficiently insightful as the people behind them usually come from a trading background and with the varying methods of delivery, tutorials can make the learning process exciting and motivational.

In this article, we will look at the main benefits of forex trading tutorials, but also, the different ways you can take a tutorial and where to find the best forex trading tutorials online. Read on and start your trading journey on the correct path to success.

trader at desk listening to a tutorial

How Are Forex Tutorials Delivered And Who Would Each Method Suit?

Forex trading tutorials can be delivered in differing formats, catering for varying learning styles and preferences. Each delivery method offers unique benefits and suits the different needs of traders, from newcomers to experienced traders, looking to refine their technique and strategy. In our easy to read table we list each tutorial method to give an instant overview of what might work best for you.

Tutorial MethodDescriptionWho Would It Suit
Online coursesOnline platforms provide structured courses for all levels of trader. The courses can include a blend of written material, video lectures, quizzes and interactive componentsGreat for self-paced learning
Webinars and live workshopsLive webinars and workshops are conducted by educational platforms and trading experts. They offer real-time interaction with instructors, allowing for immediate Q & AsThose looking for specific topics or strategies
Video tutorialsPlatforms like YouTube offer video tutorials, ranging from comprehensive guides to shorts, focusing on specific aspects of tradingParticularly helpful for visual learners
E-books and digital guidesE-books and digital guides offer easily accessible information in written form, serve as handy reference materials and range from basic guides to advanced trading conceptsFor those who prefer reading to other learning formats
Interactive trading apps and gamesApps and games are designed to teach forex trading in an interactive and engaging way by gamifying the learning process to make it accessible and funFor learners who find standard methods overwhelming
Demo trading accountsMost online brokers provide free demo accounts where traders can practice with virtual money. These platforms are providing the chance to apply knowledge in a risk-free environmentFor newbies wanting hands-on experience and knowledge
Mentorship programsSome traders chose personalized mentorship programs where a seasoned trader gives one-on-one guidance, bespoke advice and direct feedbackFor those seeking in-depth, customized learning
Trading forums and online communitiesThe participation in online communities and forums is a form of tutorial as members share advice, strategies and experience that gives valuable insights and peer supportFor those that like to learn through community participation
Seminars and conferencesAttending conferences and seminars affords opportunities to hear from multiple experts, network with other tradersTraders wanting to stay updated on the latest trends and strategies
Workbooks and exercise sheetsExercise sheets and workbooks provide a hands-on approach to learning, including trading scenarios, strategy planning exercises and calculationsFor those who learn best through practice
Table 1

What Are The Benefits Of Forex Trading Tutorials

Here at Axcess FX, we strongly believe in the merits of forex trading tutorials and have identified several key benefits that traders of all levels can enjoy from participating in tutorials.

Constructing a trading mindset

Having the right mindset is just as important as knowledge and strategy to become a successful trader. Forex tutorials typically emphasize the significance of patience, discipline, emotional control and ongoing learning. Tutorials instruct traders to deal with wins and losses objectively and to adhere to a focused approach to trading.

Access to expert knowledge

Many tutorials are produced by industry professionals and expert traders, providing access to real-world experiences and expert insights. Such varied perspectives and advanced trading techniques are not always available in standard texts.

Staying updated

Forex trading tutorials often provide insights into current market trends and how to adjust strategies and trading systems to respond to any changes. As the forex market is so dynamic, it help traders stay relevant and responsive.

Personalized learning

Forex trading tutorials, as we have evidenced in Table 1, come in various formats, from online courses to interactive webinars and video tutorials. The variation really allows traders to select learning resources that best fit their learning preferences and pace to learn, enabling different learning styles and time schedules.

black and white chart on a screen

Avoiding common pitfalls

Particularly, for newcomers, it is easy to fall into common forex trading traps. Tutorials, presented by seasoned professionals are well placed to educate about these mistakes. Learning upfront about pitfalls like overtrading and having a trading plan in place can save traders from making costly oversights.

Understanding the basics

Forex tutorials are a great resource for grasping the fundamentals of forex trading. Key topics like how the global currency market works and essential trading terms is crucial foundational knowledge for new traders to successfully navigate the forex market.

Developing trading strategies

Tutorials will explore a variety of trading strategies from both a short-term and a long-term approach. It will include strategies such as day trading, swing trading and position trading. It allows traders to try out different strategies and find one that ties to their goals, risk tolerance and investment time-line.

Risk management

A vital area covered in trading tutorials is managing risk and includes:

  • Learning about leverage, its risks and how to use it wisely
  • Understanding how to use stop-loss orders to limit any sudden loss to capital on your trading account
  • How to trade with just a small percentage of your capital

Finding The Best Online Trading Tutorials

We have outlined the significant number of tutorial methods that exist, ranging from online courses, to webinars and E-books. With such a wide ranging choice, how do you find suitable trading tutorials for your needs?

Don’t worry, if you struggle to find suitable tutorials, we have also done some heavy lifting for you and have drawn up a short list of options for different tutorial methods.

Online course options offer an excellent free online course for new forex traders at their School of Pipsology

Udemy is a great resource for high quality well-priced forex courses

Webinars offer a range of forex webinars for both beginners and experienced traders and you can find the webinars at this link at their trading academy.

Video tutorials

YouTube is an excellent source for forex video tutorials and an excellent one for beginners, is the Ultimate Forex Trading Course by Raynor, who has almost 2 million subscribers. The course is 2 hours long and the video is below for your convenience.

Demo trading accounts

Reputable online forex brokers offer free demo accounts for beginners to trade with virtual money in a simulated environment. Interactive Brokers, Oanda and all offer free accounts for simulated trading.

Mentorship programs offer one of the most comprehensive mentorship programs with access to mentors, a live trading room and proprietary trading tools. We have written a review of which you can read about.

Other options include Traders Academy Club and Asia Forex Mentor.

Trading forums

Well known forex trading forums and online communities that are worth checking out include Forex Peace Army, Reddit, Forex Factory and Babypips.

Final Thoughts

Trading tutorials are essential, as without learning the basics of forex, you may incur losses on your forex broker capital account. Armed with knowledge and employing a coherent trading strategy, including risk management, all of which you can learn through tutorials, means you will be well placed to trade proficiently.

Additional Resources

Take the Easy Path to Forex Trading

The key to successful trading, if you are new to forex, is having the basics correctly in place before trading with real money in live market conditions. You must be well prepared to trade forex as it is a volatile financial instrument to trade, affected by economic data, geopolitical events and major news announcements. Adding factors like leverage to the volatility, means an inexperienced trader without a trading plan has a reduced chance of success.

In this short article, we identify five steps that you can take, as a newcomer, allowing you to improve your chances of success from the outset. Read on to find out how you can take the easy path to forex trading.

forex trading chart on a mobile phone

Which Strategy Should I Consider?

Before you start trading, it is essential to decide upon a strategy and not just enter the market blindly. Considerations should include:

Market analysis

Will you be more comfortable with technical analysis, fundamental analysis, or a combination of both? Technical analysis is the study of charts and patterns, while fundamental analysis involves analyzing economic indicators and news events,

Trading style

Do you want to trade be a day trader, swing trader, or take long term positions? Day trading involves executing multiple trades every day; swing trading is holding trades for days or weeks and being a position trader means infrequent trade placement, instead focusing on trends over months and years.

Capital Availability

The funds you have available to invest will influence your strategy. Some strategies, like position trading require significant capital due to the need to hold a position long term with wide stop-losses. Other strategies like day-trading can be executed with a smaller budget as the aim is to make a daily profit with small profits on every trade.

What Currency Pair Are You Going To Trade?

Choosing which currency pair to trade is an important step on the easy path to forex trading.

Some currency pairs like Cable (GBP/USD) are both volatile and liquid. They are well-suited for day traders looking for intraday profits as there is sufficient daily movement and there is good liquidity meaning tighter spreads and less slippage, which affects the paper thin profit margins of short-term traders.

Other currency pairs like USD/JPY are noted for being more stable. They have an inclination to follow long term trends which are suitable for position traders placing long-term strategies.

Whether it is GBP/USD, USD/JPY or another currency pair, it is important to follow them ahead of live trading until you have a good feel for price action and understand how they react in certain market conditions and to your selected technical indicators.

You will need to use charting software as part of your overall FX strategy, either a solution that is provided on your broker platform, or a stand-alone charting solution.

charting software

The Importance of Technical Analysis and Charting Software

Technical analysis is a vital skill to learn as a forex trader. Presented visually, in the form of line, bars and candlesticks, charts supply price data on what is happening to a specific currency pair, and in most instances, the fundamentals reflect in the charts.

A widely held view is that a currency trader is only as good as the charting software they employ as part of a trading system. There are excellent stand-alone charting software tools on the market, and many can also plug straight into your brokers’ electronic trader platform, allowing trading placement straight from charts, with straight through broker trade execution.

Charting software is available to suit all trading styles and is an integral reason for the growth in popularity of online forex trading. From manual charting software, to tools where you can code your own indicators and algorithms, the choice can appear overwhelming.

Good charting software includes:

  • Trendspider, an AI-powered technical analysis tool to efficiently navigate and trade on the market
  • TradingView, which is one of the best cloud-based charting software for access from anywhere
  • eSignal is a software tool that uses multiple data vendors to give some of the best historical data analysis for strategy tersting

For more information on the best technical analysis software including TrendSpider and TradingView, we provide more insight in our detailed guide on the best forex charting software for traders, researched according to strict criteria to provide the best options out there for all trading styles.

An overview video of technical analysis – Charting patterns for beginners

Practice With A Demo Account

As a beginner, ahead of trading live, you should test prospective strategies in a simulated trading environment. Most online broker companies will allow you to open a demo account, without committing to trade through a live brokerage capital account.

Trading in a simulated environment is called forward testing. It allows you to trade safely any strategy that you have backtested using the historical data available through the backtester tool of your chosen charting solution. By forward testing a strategy through multiple trades that have already back tested successfully with historical data provides confirmation of the statistical expectancy ahead of trading live with real money at risk.

Ensure A Smooth Transition To Live Trading

The final step on your easy path to forex trading is a smooth transition to live trading. Having successfully backtested with charting software, and forward tested your strategy on a demo account, there is the temptation to dive head first into live trading.

Good practice, however is to start small. Begin trading with a smaller trading size than you intended from the outset. It will help reduce psychological pressure and get you used to trading with real money as there will be an emotional difference, where the fear of losing real money can affect your decision making.

Try and also replicated the demo conditions as closely as possible in your live account, particularly risk management around tight stop-losses and keeping to the correct trading frequency by not over-trading.

Our Takeaway

In our five steps on your easy path to forex trading, we identify that analysis will always be an essential element of your forex trading strategy. If technical analysis is your chosen route then integrate the best charting software you can find, as the quality of data not only affects backtesting but has a knock on effect on forward testing and ultimately on low latency direct broker trade execution straight from your chart.

Related Resources

The Difficulty With Short-Term Forex Trading Strategies

The difficulty with short-term forex trading strategies includes the unpredictable effects of volatility compared to longer-term trading strategies.

Macro-events like economic data, monetary policy announcements and geopolitical events, can instantly move the market and affect short-term trading strategies such as scalping, day trading and swing trading which have tight stop-loss orders. Position trading is less affected by singular events as traders are looking at long-term trends.

We will look at seven key difficulties faced by traders that use short-term forex trading strategies, including the effects of volatility. We also touch upon the differences between short and long term trading strategies, so that you can make an accurate assessment of what will work best for you.

Market Volatility Caused By Macro-Events

The problem with short term trading lies in an unexpected macro-event or other significant news that moves the market more than your hourly chart or technical analysis on a given day. For scalpers and day traders it can have a profound effect including:

  • Opportunity cost: Short-term traders may miss out on broader trends while they focus on the immediate market reaction
  • Whipsaw patterns: Macro-events cause prices to change directions quickly triggering confusing entry and exit signals
  • Liquidity fluctuations: Liquidity can dry up before macro events resulting in larger spreads and slippage, increasing trade entry/exit costs
  • Stop-loss hunting: Around macroeconomic-events, prices might spike briefly taking out the tight stop-loss levels of short-term traders
  • Competition from algorithmic trading: Trading algorithms react to macro-events in milliseconds putting them ahead of human traders
  • Forecasting difficulties: Short-term traders who bet on outcomes of a macro-event may find themselves on the wrong side of a trade

Shorter Time Frames Provide Less Reliable Signals

Technical analysis patterns and indicators appear more frequently on shorter time frames but they have less reliability than longer time frames, where support and resistance levels become more established and take on greater significance.

Furthermore, as you drill down in time frames, the charts become more polluted by false moves and market noise. Market noise refers to random price movements due to minor market fluctuations and can lead to false signals and misleading trends. Day traders are more affected as they might trade off hourly charts or even shorter time frames. Ideally, traders should use a longer time frame to define the primary trend of whatever they are trading.

Impact Of Bid-Offer Spreads

The very nature of short-term forex trading is the execution of multiple trades over short periods, typically less than a day. Unlike other markets, in forex market the cost to trade is typically built into the spread, and the wider the spread the more it eats into profits on entry and exit into trades where a successful trade may only be a 10 pip profit.

As scalpers and day traders rely on small price movements to enter and exit trades, the profit per trade is highly impacted by spreads. In volatile markets, slippage, where take-profit and stop-loss orders are filled at a worst than expected price, can also further reduce potential profits.

Leverage Risk

Scalpers and day traders typically use higher leverage to boost profits from small price movements. While leverage can increase profits it also magnifies potential losses. For example, a trader leveraging 50x to trade a $250,000 USD/JPY position is exposed to a large position, likely dwarfing the trader’s actual capital account balance. Nothing short of a very tight stop-loss is acceptable when using leverage.

example of leverage

Understanding leverage and managing the associated risks has complexity and for some traders this is is difficult to grasp. Without a tight stop-loss and disciplined money management trading 1% to 2% of your trading capital account, then short term strategies can cause significant losses. A tight stop-loss may be as little as ten pips from the current spot price.

Over-Trading Risk

Short-term forex traders are at risk of over trading due to the inherent nature of trading in a system that requires multiple small trades every day to be profitable.

The high frequency of trading opportunities when trying to capitalize on small price movements within a short time frame is a particular problem as it can tempt traders to execute more trades than necessary.

The pressure to meet daily or weekly profit targets is an over-trading risk factor, especially if a trader is behind on their targets. The pressure to make budget can lead to poor decision making and taking on trades with a lower chance of success.

A Reliance On Sophisticated Tools And Techniques

To be successful as a short term trader requires access to advanced trading tools and up to date technology which can be expensive with both start up and ongoing costs. It includes:

  • High-speed internet connectivity
  • A high-specification computer with upgraded graphics card and memory to reduce lag
  • Advanced charting and analysis software
  • Direct market access via a forex broker

The need to develop or understand complex trading strategies is also essential for a successful short-term trader. These can be difficult to master especially those based on advanced technical analysis, algorithmic trading or high-frequency trading tactics.

Psychological Stress And Emotional Discipline

Short-term trading requires constant monitoring of the markets and quick decision making. It can be tiring mentally as traders must stay focused for long periods. The need to perform well on a daily basis can lead to burnout or trading decisions driven by emotions like greed and fear which can override rational analysis and decision making.

Furthermore, pressure to rapidly recover from losses can also lead to revenge trading, where traders take uncalculated risks to recoup the fall in capital on their trading account.

If You Can, Trade for The Long Term

Many forex traders cannot trade for the long term to become position traders. The reason is day traders need to make money every day to earn a living by scalping the market. A couple of pips here and there only creates a decent trading profit through frequent trading many times a day.

Taking a longer-term strategic position will require a deeper stop loss and trading with a higher percentage of your capital account. A larger transaction size justifies inactivity in the market by holding out for more significant currency moves.

A long-term trading strategy means that you are not affected by what happens on any one given day. You can forget about having to predict short term trends and you will have more chance making money forex trading.

A table showing the differences between short-term and long-term trading

FactorShort-Term TradingLong-Term Trading
GoalBenefit from small price movementsGain from big market trends
Time FrameMinutes, hours and daysWeeks, months and years
Trading FrequencyHigh, with multiple daily tradesLow, with few trades
Profit and Loss RealizationQuick, usually on the same daySlow, realized over a long time
Capital RequirementsLow per tradeHigh per trade
Risk managementTight stop-lossesWider stop-losses
Analysis typeTechnical analysisFundamental & Technical Analysis
Trading stress levelHigh, due to constant monitoringLower, due to reduced monitoring
Skills required

A video explaining the benefits of long-term over short-term forex trading

A Parting Thought

The forex markets are a market of probabilities and not certainties. Trading long term forex trends make big profits. If you have the capital forget about trading the short term where unpredictable or unforeseen events will always mean that the odds are on a knife edge.

Additional Resources

Seven fundamental forex trading tips

Seven Short Forex Trading Tips

There are so many fundamental forex trading tips that you will be aware of and try and take on board when you begin forex trading. If you start out doing the basics correctly you will have an improved chance of success.

In this short article, we have included seven short forex trading tips for newcomers that cover off the basics and will provide you with value for your future trading endeavors. Remember, many new traders go on to make a good income from their forex trading activities and so why should you not be one of them!

1. Your trading style should reflect your personality

Your chosen forex trading style should align with your personality, as trading involves making decisions under pressure and requires significant risk management to limit potential losses. By aligning your personality with your trading style will lead to improved performance, consistency and discipline

Factors to consider when you are trying to match a trading style with your personality include:

Lifestyle compatibility

Lifestyle is a factor that will impact on the style you trade. A short term trading style, like scalping or day trading is unsuitable if you are trading around a full time job. Instead, swing trading or position trading will be more appropriate.

an emotional trader looks at his screen in despair

Emotional control

Forex trading can be an emotional roller coaster and by trading according to your personality is more likely to see you keep control under pressure. For example, following a long-term trading strategy will better suit calm and patient traders rather than an impulsive trader, who is looking for greater trading activity.

Natural decision making

Some forex traders are very analytilcal and are driven by data; whereas other traders rely more on intuition. Your style of trading should allow decision making in the way that feels the most natural to you.

2. Never over trade

You should only trade in amounts and frequency that you are comfortable with until you are completely confident with your ability to trade Forex. If you over trade it may have a negative impact in the following ways:

Mental exhaustion

By over-trading you can become susceptible to mental exhaustion, especially in short term trading strategies. It can result in decision fatigue where the quality of trading decisions will gradually decrease with the more decisions you have to make. Over the course of a trading day or trading week, the negative impact of over-trading could really start to impact on you.

The lack of a strategy

When you over-trade it is an indication that you lack a solid trading strategy or the discipline to adhere to one. The absence of a coherent strategy turns your trading efforts into gambling rather than calculated risk taking.

Revenge Trading

After suffering a significant trading loss, ill-disciplined traders may try and get their ‘revenge’ on the market by placing trades with minimal rationale behind them. Such a reaction can result in a vicious cycle of further losses and over-trading

3. Let a winning trade run

To trade forex more profitably, once you have a winning trade, there are increased benefits from letting the trade and profits run:

Overcome the fear of missing out

The fear of missing out (FOMO) can see traders jump into trades without proper analysis. Through letting winning trades run, traders can offset the negative mindset of missing out on other trading opportunities.

Efficiency of time and resources

The time and effort to manage a large winning position is no different to that of managing a small position. If you let winning trades run, it is a more productive use of both your time and resources.

Improving your risk reward ratio

Having a favorable risk reward ratio is fundamental to successful forex trading. When you let a winning trade run, the potential reward increases while the initial risk remains the same; assuming you are moving your stop-loss up to break even.

4. Cut your losses quickly and accept them

By cutting losses quickly by letting a losing trade stop out and accepting it is fundamental to being a successful forex trader. There are a number of reasons the practice is crucial:

Capital account preservation

In our article why forex trading requires strict money management, we identified how small losses of 2% of capital can be recovered quicker than larger losses. Remember that a 25% loss on your trading account requires a corresponding 50% gain to break even!

Avoid the “sunk cost fallacy”

The sunk cost fallacy in trading is the belief of continuing with a loss-making trade due to the time and money already invested, despite the risk of potential losses outweighing the benefits. By cutting losses quickly on a badly performing trade, forex traders can avoid any fallacy and trade in the present and not the past.

Opportunity cost

By holding on to losing trades may tie up capital from your trading account that could be deployed to better trading opportunities. By cutting losses, traders ensure that their capital is free for fresh trades.

5. The trend is your friend

The old saying is “the trend is your friend,” anchors one of the central principles of technical analysis. The saying implies that forex traders may improve their chances of success by trading in alignment with the current trend. When trading currencies, there are a few reasons why this principle has relevance:


A trend is an indication that momentum lies behind a currency’s price movement. By placing trades that move with the trend, traders are seeking to capitalize on the momentum, which increases the chance of the trade making money.

Filtering out noise

The forex market is susceptible to random price movements or “noise” which can lead to false trading signals. By trading with the trend can help filter out noise and allow focus on more substantial price movements.

A higher probability of success

Forex trades placed in the trend direction usually have a higher probability to succeed as they go with the momentum of the market rather then against the flow.

6. Always keep to the rules

An inexperienced trader will feel tested to the limit in times of high volatility. When the spot moves rapidly, losses can occur if a trader does not stick rigidly to the rules set out in their own trading system which includes:


Adhering to a ruled based trading system creates consistency in your trading approach. By following a robust set of guidelines allows for accurate assessment of a strategy’s effectiveness and to make adjustments as necessary.

The 2% rule

It is best practice in forex trading to place no more than 2% of your trading capital on a single trade. As the forex market is so volatile, keeping to the rule can help traders navigate through periods of high volatility by avoiding panic decisions through pre-determined actions. Losing 2% of your capital is easier to recover than an ill-disciplined trade that loses 25% of your trading account.

Performance evaluation

If you are trading within a wider trading system it makes it easier to evaluate your trading performance. If trading results are lackluster, you can look back at your trading rules to pinpoint what is likely working and what isn’t.

7. Keep a trading journal

A trading journal is essential and the best traders are those that keep detailed records of trades so that they can review them at any time for different reasons:

Goal-setting and tracking

Trading journals are a good way to set trading goals and track any progress towards them. The process helps maintain motivation and keeps your trading aligned with original strategy objectives.

a trading journal


A journal will hold you accountable to your underlying trading system and strategies. It makes you question the reasoning behind every trade, helping to prevent irrational trading.

Learning and improvement

Trading journals are learning tools. Through writing your thoughts behind every trade, and comparing the expected outcome with the final result provides insights into trading processes and decision making. With the information at hand for analysis, it will help lead to continuous trading improvements.

For further forex tips please read this additional guide that we have written that will hopefully help you to trade profitably.

Written by Chris Gillie


Chris Gillie is the founder of Axcess FX, a forex software review and research website. He is a former investment banker who worked in FX Sales on the UBS London trading floor. Chris has been using forex trading software as part of his trading set-up since the late 2000s and the embryonic days of MetaTrader and the MQL coding language.

Additional Resources

Automated Forex Trading Software: The Role of Robots & EAs

Forex robots and Expert Advisors are scripts that are coded with automated forex trading strategies.

The primary way to use automated software is to import these scripts into a forex platform such as the well-respected MetaTrader platform. Many robots and EAs develop using the Metaquote MQL language and deploy on both MetaTrader 4 (MT4) and MetaTrader 5 (MT5).

The automated forex trading software can perform trading operations once imported into the trading platform, some with minimum trader intervention according to the algorithm’s pre-set conditions.

a robotic finger touching a chart

Are Forex Robots and Expert Advisors the same?

Forex robots and Expert Advisors are both very similar types of automated forex trading software. Both are involved in the analytical part of a trade. Both undertake market analysis including charts using their internal algorithms and technical indicators to find high probability trades’ entry points. 

There is one crucial difference. A forex robot will perform trades without the need for manual sign off. An Expert Advisor is just responsible for generating trading signals, advising you if they think you should trade but not placing a trade for you. Forex robots automate the full process from trade signal to trade placement with no trader intervention.

The Main Features of Expert Advisors and Forex Robots

The algorithmic trading programs coded into EAs and forex robots are often capable of performing varying functions.

Except for automatic order placement, which is limited to forex robots, they share the following functionality:

  • Alerting the trader about market events
  • Risk control via pre-settled money management policies
  • Monitoring the compliance of a strategy concerning market conditions
  • Place orders to trade according to specific conditions
  • Opening, closing, or partial close of market orders according to the algorithm
a robot pointing a finger

Video Insight

An excellent video discussing whether you should trade with automated forex trading robots:

The Advantages of Automated Forex Trading Software

There are many pros of forex trading by robot and the most important are the following:

  • 24/5 trading: A robot for trading forex will automatically enter and exit forex trades during a specified period if that is part of its programming. It means a trader does not have to be present to manage the trade placements. It could allow 24-hour trading at high volume, which is not possible for a human being. It reduces the chance of missed trading opportunities that a human trader may encounter due to physically being unable to trade. Many traders chose to use forex trading bots as their sole trading method, while others will use it as part of a broader overall strategy.
  • Forex Robots remove human emotion: Even disciplined traders working within a robust forex trading system can be susceptible to placing trades that may not align with strategy rules. Times of high volatility or chasing a loss can see traders who place manual trades that do not follow the logic, incur large trading losses. Automation removes psychology from trading with a focus just on following a strategy.
  • Backtesting automated forex trading software: To get an insight into how profitable automated trading systems are depends on the strategy. It is critical to undertake a backtest of the automatic trader software and have a robust money management system in place from the onset. Backtesting is essential for getting a better idea of the robot’s performance, including risk versus reward and other variables and indicators. However, good your strategy, without backtesting and money management in place, you will fail. Get it right from the beginning. Below is an example of a robot strategy backtest:
Screenshot of a forex robot strategy backtest

The Disadvantages of Forex Robots

Using a robot for forex trading does have its disadvantages; however, these are starting to be addressed as more advanced EAs come onto the market and lower cost and faster access to FX trading.

  • Narrow trading conditions: Forex Robots work best with a single currency pair and in markets trading in a limited range. Volatile forex markets with large trading ranges see more mixed results. A small number of sophisticated EAs are incorporating increasingly complex algorithms with dynamic features, including recognizing when forex market conditions are becoming more volatile and adjusting for it. Forex Robotron is a sophisticated robot. For example, it has a dynamic stop loss and close profit feature. When this is activated, as soon as an open trade starts to lose money, the position is closed, which overrides the default stop loss position.
  • The requirement for a VPS server: The only downside to using robots is the need to leave your computer on if you want a robot forex trading continuously, and this requires a reliable server, which costs more. Using a VPS or Virtual Private Server instead of lower-cost shared hosting is essential to trade forex reliably lowering the risk of glitches or slow connections, which can affect trade placements.

Who Needs Automated Forex Trading Software?

A forex robot can be employed by all forex trader levels, from the beginner to the professional trader.

A beginner may rely on a robot to generate regular profit as they learn how to trade. In contrast, using a defined trading strategy, a professional trader will employ a robot as an accompaniment to their trading system. Professionals often tend to use automated software to generate trade signals but will decide whether they will place the trade.

Do Forex Robots Work?

a forex robot looking at a chart

A Forex robot can work well if it is employed correctly. A Forex robot should be considered as a tool that identifies market trends and generates forex trading signals that you, as a trader, can choose to act upon. It is the true definition of an EA, where you have the final say if you want to place that identified trade.

Where you choose when to trade means the EA is an extension of your trading system where settings and parameters are aligned as closely as possible to your strategy and currency pairs traded.

To employ a robot correctly does require an underlying knowledge of forex trading. Beginners who use fully automated robots to execute trades are less likely to see the full benefits of employing a robot unless they get trading experience through backtesting and practicing using a demo account.

How Much is A Forex Trading Robot?

Forex robots are traditionally available for purchase for a one-off fee, which offers lifetime updates. Prices vary from below $250 for long-established robots like WallStreet Forex Robot 3.0 to over $500 for Forex Flex EA. One of the few forex robots that retails on a subscription basis is Forex Real Profit EA. The complexity of the algorithms often dictates the price. Robots that include dynamic features that can adjust to changing market conditions tend to be at the upper price level. Most reputable developers will offer a 30 or 60 day money-back guarantee.

Some developers are now starting to offer automated software on a subscription basis. The merits of this from both the programmer and the user perspective is it allows ongoing development of the robot, making sure it continues to trade profitably by continuous review of built-in algorithms. Forex Real Profit EA is available on a subscription at a cost of $199 a year.

What is the Best Forex Trading Robot?

There is a multitude of forex trading robots available on the market, particularly compatible with the MetaTrader trading platform. Reputable resources that verify robot performance include MyFXbook. We have also researched and created a list of the top Expert Advisors according to a strict set of criteria to help you undertake due diligence and make an informed decision to finding the best forex robots to fit with your trading system.

At Axcess FX, we consider a low drawdown the most vital metric to gauge a robot. Drawdowns are the fall in the capital on your forex broker trading account following losing trades in real-time trading. It is the calculation of the difference between the relative peak in trading capital and the relative trough in the capital and is represented as a percentage.

screenshot of verified performance data on myfxbook
A screenshot of verified performance of a forex robot on MyFXbook

Final Thoughts and Conclusion

If you are new to forex trading and are considering automated forex trading software, try and build a knowledge base first, including defining your possible trading strategy and style.

Remember, experienced traders still want to maintain control and a more hands-on approach to forex trading and use an Expert Advisor to identify trade opportunities as part of a trading system, with manual trade placement as a preferred step.

Related Resources

Written by Chris Gillie


Chris Gillie is the founder of Axcess FX, a forex software review and research website. He is a former investment banker who worked in FX Sales on the UBS London trading floor. Chris has been using forex trading software as part of his trading set-up since the late 2000s and the embryonic days of MetaTrader and the MQL coding language.

Trading Forex in 5 Steps: The Dummies Guide

Forex is one of the fastest moving financial instruments meaning the forex market is volatile and unpredictable and a daunting place if you do not know what you are doing.

As a beginner, you must accept that you will need to learn the basics. Here are the five steps required to start trading the forex markets proficiently in our forex trading for dummies guide.

a forex chart on a pc

1. Get a Basic Forex Education

Learn the basics. There are plenty of online guides, forex tutorials, and courses available for those starting forex trading. Substantial learning to trade resources are available online including, Investopedia and has excellent educational tools to help you trade, provides a highly recommended guide for beginners and Forex Mentor Pro offers a full suite of tools including live trading sessions to teach beginners how to become a profitable trader at an affordable price.

At the start, you need to understand the fundamentals of the forex market, how forex quotes work, and the major market participants.

Forex market fundamentals

Currencies like stocks can be freely traded. The key difference is currencies trade Over The Counter (OTC) between a buyer and seller and not on an exchange, like the NYSE as stocks do.

The forex market trades around the clock, 24/5, throughout three major trading sessions: the European, U.S, and Asian session, centered around London, New York, and Tokyo. All three trading sessions overlap, providing 24/5 coverage from the Sunday evening Asian trading session until the U.S. trading session’s close on the following Friday evening. The London and New York trading session is the most liquid where spreads are the narrowest.

How do forex quotes work?

You cannot trade one currency in isolation; it needs pairing with another currency, creating a ‘currency pair.’ A currency quote reflects the first currency’s price in terms of the second currency in the pair. If GBP USD (sterling versus us dollar, also known as Cable) is trading at 1.3500, it means that one GBP will purchase 1.3500 USD.

Currency pairs quote down to four decimal places. The final decimal represents the smallest increment that a currency can change in price and is known as one pip. Retaking our GBP USD example, if the currency pair increases from 1.3500 to 1.3550, it means a rise of 50 pips, and a forex trader will express the amount of profit (or loss) in terms of pips.

Who are the primary forex market participants?

Before the advent of the internet, the foreign exchange market was dominated by predominantly institutional participants such as major banks, large international companies, central banks, and investment funds.

With the advance in technology, the retail investor has now joined the big players in the forex markets as online forex brokers provide low-cost market access with tight spreads through their trading platforms. Retail foreign exchange is continuing to grow as small forex traders take advantage of trading anywhere they have a device, whether pc, tablet, or mobile with internet connectivity.

forex trading on a mobile device

2. Raise Your Knowledge to The Next Level

This second step should start to include learning about technical and fundamental analysis and an understanding of both manual and automated forex software, including Expert Advisors and charting tools and packages.

This step also includes researching different types of strategies as the aim is to build your forex education to a level where you can start to mold a trading style that plays to your strengths.

There are four broad types of forex trading strategies, which are position trading, swing trading, day trading, and scalping. Position trading is taking a longer-term strategic currency position. Simultaneously, scalping is the shortest strategy with currency trades sometimes opened for just seconds to take advantage of only a few pips of profit. Choosing a preferred strategy may come down to your character, with an analytical thinker choosing to use fundamentals as a basis for taking out a long-term view using position trading.

To gain all the essential knowledge to start trading, it is vital to watch tutorials, participate in online courses, and follow trading forums. Forums have developed useful ways of tutoring about the basics of currency trading for dummies and showing beginners instant trading results. Forex Mentor Pro has an excellent active member forum that you get access to when you sign up for an affordable membership and learn how to trade profitably. Forex Guy also has a good forum and Second Skies Forex offer a 12-chapter trading forex for dummies course.

Particularly, when looking at forums, try and pay close attention to what successful forex traders are doing and what you can take from their strategies and techniques relevant to you and from which you can mold a system around.

currency charting software on a pc screen

3. Open An Account With An Online Broker

To trade Foreign Exchange, you will need an online trading account provided by a reputable brokerage. Any online broker selected should include the following considerations:

Consider an ECN broker

Ensure that the broker uses ECN (electronic communications networks) to give you direct access to other currency market participants. ECN brokers match trades between buyers and sellers and do not trade against their clients, instead passing orders to liquidity providers. ECN brokers provide the tightest spreads and only charge a fixed commission per forex trade. Tight spreads are particularly relevant if you are adopting a scalping strategy.

Your chosen broker should use Metatrader

Chose an online broker that uses the MetaTrader 4 forex trading platform (MT4). MT4 licenses to forex brokerages who then provide the software to their retail traders. It is a flexible platform built on the MQL coding language employed by most forex trading software that you may choose to use as part of your more overall trading strategy. It may include enhanced technical analysis tools or an Expert Advisor as part of an automated or semi-automated trading setup.

Only use a regulated broker

Not only are tight spreads, fair commissions, excellent customer service, and MT4 capability important when choosing a broker, it is also very important to ensure the broker is fully regulated.

If you are a U.S. based forex trader, you are required to use a broker that holds full registration with the CFTC (Commodities and Futures Trading Commission). This highly respected regulatory framework safeguards investors’ interests by ensuring a broker maintains complete records, reports, and disclosure. To become CFTC registered, a broker needs to keep a substantial holding deposit with the regulator, meaning not all brokers can offer their services to U.S. currency traders. Investopedia has an excellent resource for comparing forex brokers including those considered the best for US Traders.

Finally, a good demo account is also desirable, as that is an integral part of becoming a proficient forex trader, and we cover this next.

a currency chart

4. Start Using A Demo Account to Dial In Your Strategy

As a novice trader, the first thing you should do is trade forex using a demo account provided by your online forex broker.

A demo account works in the same way as trading real money on your brokerage capital account. It will allow you to trade a theoretical amount in a live environment without putting your capital at risk.

Most online brokers do offer a degree of training on their platforms, including charting tools for technical analysis which is well worth going through as it will give you an idea of what you should be looking for on charts to complement your system for trading in forex.

Demo accounts additionally serve to familiarise yourself with a broker’s electronic trading platform. When you trade with real money, you must be proficient with the order entry system, so you do not incorrectly enter a forex trade and lose money.

forex software

5. Integrate Forex Trading Software to Complete Your Trading Style

Once you are operating with a demo account, it will be essential to have at the very least a charting package. Some of the more basic charting software tools are free, and there is an annual subscription for others. It is best, to begin with, the platform’s free version provided to get a feel for how they work. You can then choose more advanced charting software packages such as TradingView, or Esignal offered on a subscription basis.

Automated software can also be a great option as part of a broader trading system. Using automated trading takes the emotion out of trading. You can use a pre-programmed Expert Advisor (EA) to identify forex trends by following a set of rules and which then recommends trades based on any signal identified.

Some EAs, also known as forex robots, will also place any identified trade directly onto the currency market without the need for human intervention. Automated software allows you to place trades automatically, meaning you do not have to be at your desk for long hours. The robot does the heavy lifting. Many professional forex traders do, however, prefer to maintain an element of control by only using EAs to identify trades and then choosing whether to act upon them or not.

Read more about forex robots in our detailed guide on how to find a profitable forex robot to accompany your trading strategy.

a forex robot pointing at a screen

Go Live

Now you are ready to go live and start trading with real money. At this stage start with small trades and adhere to two principles:

Risk management

Make sure your money management system is strict, and do not trade with more than 1% of your capital. Combine this and always use a stop loss to avoid any significant losses.

Statistical Expectancy

Think about your overall trading strategy and statistical expectancy and not about individual trades. The aim over the long term is to trade using probability, and if you know your trades have a good chance of making a profit over the long run, individual trades are irrelevant.

We have two further written resources that provide more related reading to this article:

How to navigate to the journey to an expert trader

10 useful tips on how to trade forex profitably.

Written by Chris Gillie


Chris Gillie is the founder of Axcess FX, a forex software review and research website. He is a former investment banker who worked in FX Sales on the UBS London trading floor. Chris has been using forex trading software as part of his trading set-up since the late 2000s and the embryonic days of MetaTrader and the MQL coding language.

Do Forex Robots Improve Your Winning Odds?

forex flex ea software

If you trade forex, you will know that timing is critical. A forex robot can take the guesswork out of flaws in human timing, including emotion, by not only identifying trades but if you choose to do so the robot also automatically enters and exits trades with no manual intervention.

Trading forex can be very exciting and profitable, but remember, it is a zero-sum game. For every FX winner, there is a loser on the other side of the trade. To be a winner, you only need to be right a little more than half the time.

As part of your broader trading system, can you expect to be a winner more than half the time with a forex robot?

To help answer this question, it is crucial to undertake rigorous research before adding a forex robot, also known as an Expert Advisor (EA) to be part of your trading system.

Once you have identified an EA to match your strategy, it is then vital to both backtest and undertake at least 50 trades with it by forward testing in a demo environment before progressing the robot to real account trading.

Research is Key

As part of your forex robot research, it is essential to consider the following points when considering adding a robot to your existing trading strategy.


Does the Expert Advisor’s underlying trading strategy align with your trading strategy?

For example:

  • Does it trade the currency pair or pairs that you already trade?
  • Are you a day trader using a scalping strategy? If so, a scalper robot like Forex Megadroid is probably the most relevant robot to your trading system.
  • Do you trade a particular session? If so, does a robot also generate trade signals during that session?
forex megadroid software

The Key Metrics for Evaluating Robots

To verify robot performance as part of your research, the robot developer must have verified performance data on a real trading account for you to analyze. Two essential resources provide this data, MyFXbook and FX Blue. Consider the following statistics as part of your research:

Profit factor

The profit factor can reveal whether a robot makes money, and so is a crucial metric. The profit factor or PF displays the relationship between profit and risk, calculated by dividing gross profit by the gross loss on all trades. An EA with a PF of less than 1.0 should not be considered for selection as it will lose you money.

Risk-reward ratio

The risk-reward ratio is an indication of a robot’s level of risk. A high risk-reward ratio indicates that a robot has a riskier strategy coded into its algorithm and should be openly questioned.

The golden risk-reward level of 3:1 is considered the benchmark to apply to a trading system where every $1 risked expects to see $3. It means that you could trade profitably with a robot that is only correct 50% of the time. Consider the below table that illustrates this point where if you only had winning trades 50% of the time you would still make an overall profit over 5 trades of $20,000 using a 3:1 risk-reward ratio.



Drawdown is an essential metric and represents the maximum loss percentage since the last high point on your capital trading account. It can be analyzed by studying an equity curve chart. If a chart has large peaks and troughs, it is an indication of volatility. A robot with a high drawdown is not only volatile but also poses a higher risk. Consider robots with a low drawdown like Forex Flex EA represented by a steadily rising chart.

a forex robot looking at a currency chart

Maximum drawdown

This metric represents the robot’s maximum loss after the last high point in capital on your trading account. For example, a 60% drawdown indicates that an EA lost 60% of the trading capital value at one point. If it were to occur right after trading started, it would mean an instant fall of 50% in your capital account!

Average drawdown

Average drawdown is the comparison of several different drawdown amounts. If a robot has five drawdowns, adding them up and dividing by five gives the average drawdown. It will offer you an idea of the average loss size during a period of drawdown.

Backtesting is Vital to Verify a Forex Robot’s Results

Some forex robots are programmed to be quite active and will put on trades several times a day. Others will trade less frequently, only when conditions are optimal. Some automated programs, such as Forex Flex EA have a lengthy history of positive reviews and long-term backtesting to confirm their validity. You can also look at the results obtained from recent live trades for confirmation. 

Best of all, you can link them to the MetaTrader demo account without risking real money. It should provide the necessary validation. If you are a new or a seasoned trader, a robot can help you become more profitable as part of a robust forex strategy.

Statistical expectancy

It is essential to completely disconnect from whether your next trade placement makes a profit or a loss. If your underlying strategy has an edge, you do not have to be right even half the time to trade profitably. Statistical expectancy allows you to evaluate your trading system’s performance objectively by testing robot performance from fifty trades.

Forex robots allow 24/5 trading

There is a vast choice of automated trading software that allows robots to direct your trading through algorithms. Most are simple to install and get running, linking right into your online broker’s platform.

If your broker uses the MetaTrader platform, then automated software integration should be straightforward as most robot developers use the MQL language code of MetaTrader for scripting forex robots. 

forex chart on a computer screen


Forex trading can be profitable and exciting. By undertaking extensive research and testing to get the right forex robot trading for you, further reinforcing trade signals aligned to your strategy means guesswork is further reduced. The risk of trading outside the confines of your strategy through psychology also reduces.

For every side that there is a winner, there is also a loser. Which side would you prefer to be?

Written by Chris Gillie


Chris Gillie is the founder of Axcess FX, a forex software review and research website. He is a former investment banker who worked in FX Sales on the UBS London trading floor. Chris has been using forex trading software as part of his trading set-up since the late 2000s and the embryonic days of MetaTrader and the MQL coding language.

The 15 Best Resources to Learn Forex Trading Online

When starting in online forex trading, you must understand the mechanics of the Forex market. If you want to preserve the cash balance on your brokerage account, at the very minimum, you must have some concept of economic fundamentals and technical analysis.

forex chart

The primary influencer of forex markets is global macro-events and news and the potential to make significant profits in forex requires volatility. If the FOMC cut US interest rates unexpectedly, currencies are likely to move wildly. Inexperienced traders may be unsure how to trade in volatile markets and make irrational trades in panic. Experienced traders with a system trade without emotion and will always benefit when the inexperienced do not.

Without having a robust strategy or trading plan in place, trades are mostly thoughts only, and thoughts are emotions. It is a weak base from which trade. Getting a forex education and developing a trading plan is vital if you want to thrive as a forex trader. How can you do this?

There are different ways to study foreign exchange basics before you dive into the wild world of forex trading and there is no reason that it should cost you any outlay with an extensive number of free forex learning resources available on the internet.

The Best Free Forex Resources Online

Until you understand basics like the forex quote system, trading terms, and market participants, you will not be able to move on and develop a robust strategy for forex trading. Free resources are available online to aid you get the basic forex education necessary to move forward and trade forex. The top forex trading resources for mastering forex basics are:

1. FX Street

The A to Z of everything forex from the basics to advanced strategies, FX Street is an accessible resource in the online trading community.


An extensive library of educational content is available at This well-regarded CFTC registered online broker caters for all levels of trader from the newbie to the experienced pro and it is free to open an account to access the full suite of educational trading resources.

3. Investopedia

Interactive learning from basic up to mid-level education, Investopedia is an all encompassing bible of financial information which is easy to navigate with a simple to understand layout.

4. Babypips

Great for beginners to understand the basics of forex by presenting complex information in a simple way. Baby pips also have a busy forum where you can ask any forex related question and expect to receive an answer from a member of this thriving community.


A forex trading website that specializes in beginner traders and provides free to use information and resources, including educational material, analysis, and real-time data.

6. Bloomberg TV

Expert panelists and reporters will provide you with copious amounts of forex market information to digest. Immersing yourself in Bloomberg TV every day is a necessity to get an understanding of the FX market.

7. Youtube

Learn from Youtube channels dedicated to forex from researching tools and platforms to videos explaining trading concepts. Here is an example of a high quality beginner forex tutorial made available on Youtube byTrading 212 which has more than 1 million subscribers.

8. DailyFX

A free-to-use site, DailyFX provides real-time news, live market data, and in-depth technical analysis for those looking to build their forex education.

9. Trading View

Excellent for charting, Trading View, through cloud-based software, allows all traders to track and research the forex market with customizable charts

10. Forex Factory

Forex factory has a trades section where beginners can watch live trades placed by a more experienced market participant. An excellent forum section hosts a broad range of active forex related discussions.

The Best Online Forex Tutorials

Online tutorials train you to read charts, understand price dynamics, open and close positions, and see developing patterns, a further move towards developing your trading strategy. We see tutorials as an integral step to learn how to trade forex.

There is a number of online tutorials to choose from. We have selected our best five

11. Learn to Trade

A site which offers free live FX workshops and a lot of other free online resources

12. Trading Academy

A website that provides a free online trading course if you subscribe. Trading Academy also offers free-half day training courses all over the world

13. The Forex Guy

Access to a forex trading course that will teach you how to interpret charts, access to weekly video tutorials and access to a trading community forum

14. 2nd Skies Forex

A highly rated, free beginners course in forex consisting of 12 chapters covering you from the basics to forex trading strategies

15. Winners Edge Trading

Well known within the forex trading community, Winners Edge offers some free tools including forex calculators

Finishing Your Online Forex Education

Once you think you have covered the basics through free online resources and furthered your forex education with online tutorials, it is the time to develop a strategy.

Unless you have done so already, you will need to open an account with an online broker, and the final stage before you start trading with real money will be to hone your strategy on a demo account. A reputable CFTC regulated broker like will allow you to open an account and practice in their demo environment.

Forex resources, ourselves included, advocate getting hands-on experience by using a demo account. Learning not only to develop or fine-tune a strategy but also to familiarise yourself with your broker’s online platform to avoid making order placement errors when you commence trading live.

We wish you happy trading – From everyone at Axcess FX

Written by Chris Gillie


Chris Gillie is the founder of Axcess FX, a forex software review and research website. He is a former investment banker who worked in FX Sales on the UBS London trading floor. Chris has been using forex trading software as part of his trading set-up since the late 2000s and the embryonic days of MetaTrader and the MQL coding language.

Nick Leeson and Barings Bank Collapse: My experience

nick leeson barings

Nick Leeson brought down Barings Bank in 1995 after racking up huge losses through unauthorized derivative trading in Singapore.

The immediate aftermath of the Barings Debacle raised the question of why a relatively small merchant bank had a trading operation in a far-flung place so far away from its London head office.

It is a fascinating story that had a huge impact.

The Consequences Barings Collapse Had On Bank Trading Floors

Concerned, other banks began looking at their trading operations all around the world. Why have twenty trading rooms, thus increasing the risk of a rogue trader or a financial loss when you could do the same with three trading rooms, one in each of the time zones and make the other centers into sales rather than trading operations.

A modern trading floor

The repercussions for many banks were swift

At the time, I was working for a large European Bank, trading the DEM and CAD deposit books through FX Swaps, FRA’s and cash. The bank had trading rooms all over the place, including San Francisco, Wellington, and even Bahrain. Our trading room was in one of the bank’s offshore operations.

Within months, we were told to square all our open positions and explained all our lending limits would be transferred to the head office as the bank sought to streamline its trading operations. Our trading room was scaled down, and the traders, including me,had to find new jobs.

The Barings collapse was an instrumental factor in forcing banks to move towards operating a single global trading book that is passed around the world as the trading day moves through the major time zones of Tokyo, London, and New York.

Lessons Were Not Learned As History Repeats Itself

Following the Barings collapse and the impact it had on how banks trade, it was not until the 2008 financial crisis that banks would again come under pressure. Like Barings, respected names like Lehman Brothers would collapse. Banks had not learned their lesson.

Written by Chris Gillie


Chris Gillie is the founder of Axcess FX, a forex software review and research website. He is a former investment banker who worked in FX Sales on the UBS London trading floor. Chris has been using forex trading software as part of his trading set-up since the late 2000s and the embryonic days of MetaTrader and the MQL coding language.