Complete Guide
Everything You Need to Know About Forex Trading
From understanding the basics to comparing the top brokers — this guide covers everything you need to know before you start trading forex. No jargon, no fluff, just clear information.
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The Basics
What is Forex Trading?
Forex, short for foreign exchange, is the global market where currencies are bought and sold. It is the largest and most liquid financial market in the world, with over $9.5+ trillion traded every single day.
When you trade forex, you are essentially exchanging one currency for another — for example, buying US Dollars while selling Indian Rupees. The goal is to profit from changes in the exchange rate between the two currencies.
Unlike stock markets which have fixed trading hours, the forex market operates 24 hours a day, five days a week across major financial centres including London, New York, Tokyo, and Sydney.
Currencies are always traded in pairs — such as EUR/USD (Euro vs US Dollar) or GBP/INR (British Pound vs Indian Rupee). The first currency in the pair is called the base currency, and the second is the quote currency.
Who Participates in the Forex Market?
Governments and central banks trade currencies to manage their national monetary policy and stabilise exchange rates.
Large banks facilitate the majority of forex transactions on behalf of their clients and for their own trading desks.
Multinational companies exchange currencies to pay suppliers, employees, and manage international revenue.
Individual traders like you access the forex market through brokers and IBs to speculate on currency price movements.
Key Concepts
Important Forex Terms Explained
Before you start trading, it is important to understand these core concepts. They will come up constantly as you explore brokers and platforms.
Pips
A pip (percentage in point) is the smallest standard price movement in a currency pair. For most pairs, one pip equals a move of 0.0001 in the exchange rate. For example, if EUR/USD moves from 1.1050 to 1.1051, that is a one pip movement. Pips are how traders measure profit and loss.
Lots
A lot is the standard unit of measurement for a forex trade. A standard lot equals 100,000 units of the base currency. Most retail traders use mini lots (10,000 units) or micro lots (1,000 units) to manage risk. The lot size you trade directly affects how much each pip movement is worth in monetary terms.
Spreads
The spread is the difference between the buy price (ask) and the sell price (bid) of a currency pair. It is essentially the broker's fee for executing your trade. A tighter spread means lower trading costs. Spreads are measured in pips — for example, a spread of 1.2 pips on EUR/USD is considered competitive for retail traders.
Leverage
Leverage allows you to control a larger position with a smaller amount of capital. For example, with 1:100 leverage, you can control $10,000 worth of currency with just $100 in your account. While leverage can amplify profits, it equally amplifies losses. Always understand the leverage offered by your broker before trading.
Margin
Margin is the amount of money required in your account to open and maintain a leveraged position. It acts as a security deposit rather than a fee. If your account balance falls below the required margin level, your broker may issue a margin call, asking you to deposit more funds or close positions.
Minimum Deposit
The minimum deposit is the smallest amount of money required to open a live trading account with a broker. This varies significantly between brokers — from $0 at some brokers to several hundred dollars at others. A lower minimum deposit makes forex more accessible, especially for beginners who want to start small.
Trading Platforms
A trading platform is the software you use to place trades, analyse charts, and manage your account. MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are the most widely used platforms globally. MT4 is popular for its simplicity while MT5 offers more advanced tools. Most brokers offer both, and some also offer proprietary platforms or TradingView integration.
Currency Pairs
Forex is always traded in pairs. Major pairs involve the US Dollar and include EUR/USD, GBP/USD, and USD/JPY. Minor pairs do not include the USD, such as EUR/GBP. Exotic pairs involve one major currency and one from an emerging economy, such as USD/INR. Major pairs typically have the tightest spreads and highest liquidity.
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Broker Comparison
Compare the three brokers featured on AegisWise across the most important criteria for retail traders.
Broker terms, fees, and requirements are subject to change. Always verify information directly on the broker's official website before opening an account.
| Criteria | VT Markets | Markets4you | Dupoin |
|---|---|---|---|
| Founded | 2015 | 2007 (rebranded 2024) | 2020 |
| Minimum Deposit | $50 | $0 | $10 |
| Trading Platforms | MT4, MT5, TradingView | MT4, MT5, Copy Trading, Mobile App | MT5, ActsTrade, Dupoin App |
| Spreads | Competitive, institutional and retail volumes | Floating and fixed spread account options | From 1.2 pips standard, 0.0 pips on premium accounts |
| Account Types | Multiple account tiers for retail and institutional traders | Multiple floating and fixed spread account options | Standard and premium high-tier accounts |
| Funding Methods | Bank transfer, cards, e-wallets, cryptocurrencies | Bank transfer, cards, electronic funding methods | Bank wire, cards, digital payment routes |
| Monthly Volume | Over $1 trillion peak monthly volume | Over 1.3 billion total orders processed | Over 500,000 active global users |
| Notable Feature | Strong institutional presence with retail accessibility | $0 minimum deposit, 3 million active accounts | Raw 0.0 pip spreads on premium accounts |
| Best For | Traders wanting a well-established broker with diverse funding | Beginners wanting zero minimum deposit and copy trading | Cost-conscious traders seeking tight spreads |
Want help choosing the right broker? Visit our forex page or connect directly with an Introducing Broker who can guide you based on your specific needs.
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