One of the most stable economies in the EU, Ireland serves as a major activity hub for forex on the European continent. The Global Financial Centres Index (GFCI) ranks Dublin as the No. 5 financial hub in Europe and No. 38 in the world. Regulation from multiple financial authorities helps secure transactional fidelity and provides a safe and even welcoming launchpad for forex speculation.
Attribution: Pxfuel
The euro is 1 of the strongest currencies in the world and offers a great advantage if you want to participate in the forex market in Ireland. Keep reading for everything you need to know about getting started with forex trading in Ireland.
Get Started with Forex in Ireland
Follow these steps to get your financial infrastructure ready for forex trading.
- Make sure you have a fast internet connection. Connect to a forex broker through any desktop, laptop or smartphone. If you can connect from a setup with a large screen space, that is an advantage as well. Successful forex traders base their trades on a lot of information. News, charts and account reports can be difficult on a handheld phone!
- Choose a broker. In Ireland, the business of being a forex broker is competitive. Use that to your advantage to get the best one for you. Reputable forex brokers offer fast execution, proprietary analysis and helpful customer service.
- Open your broker account. After you have the broker you like, open your account following the broker’s instructions. Each business will have a slightly different verification process and ways to connect to a funding source.
- Fund the account. It takes money to make money! You should be able to fully fund your forex account from a personal check, your bank account, a debit card or a credit card.
- Pick a trading platform. Your broker may have a proprietary trading platform. If so, you probably want to use your broker’s software. If not, pick the trading platform you feel most comfortable using.
- Start trading. Once your infrastructure is set up, you can instantly begin to trade in the forex market!
Ireland Forex Trading Strategies
Learning how to trade forex successfully involves lots of study and knowledge of investment strategy. Here are some of the most popular forex trading strategies that you should know about.
Attribution: Flickr
Day Trading
There’s only 1 rule that all day traders respect: You must be in all cash by the end of the day. That means you have to make your money quick. Day traders are not concerned about long-term moves in the market. Chart technicals are much more important than currency fundamentals. If you want to make money fast, this may be the trading strategy for you.
Day trading includes an extremely fast form of trading known as scalping. Scalping is exactly what it sounds like — you move as fast as possible, shaving profits off of the top. In some cases, you’ll be on minute charts, exiting trades in seconds. Timing is everything, so make sure your trading setup and internet connection are as close to perfect as possible. You’ll be in competition with some of the most powerful traders in the world, including market makers.
Swing Trading
Swing traders fall into 2 basic categories — range traders and trend traders. Both of these types have similar skill sets. The real difference in the style has to do with the movement of the market, not the trader. Range traders buy low and sell high between a support and resistance range. Trend traders catch a directional ride when a currency decides to move up or down substantially in value.
Swing trading is a short-term strategy. You may hold your position for a number of days, but usually not much longer. You may need to understand some of the macroeconomic conditions behind a currency pair but you will also need to know how to read chart patterns.
Positional Trading
Positional trading is for investors who like to profit from long-term moves. If you are in a trade longer, you can usually expect bigger moves. Positional traders aren’t worried about short-term pullbacks in the market or unexpected news items. Over the long term, illogical short-term moves have less influence than macroeconomic conditions.
If you like studying the inner workings of global finance, positional trading is for you. Studying the relationships between countries and business trends should help your success rate.
Forex Trading Example in Ireland
EUR/USD is trading at 1.12161/1.12603. You want to invest in the euro price rising. You prepare to buy 100,000 euros. The margin rate of this currency pair is 3.09%, so you will only need $3,472.60 in your account to purchase the full 100,000 euros. Your broker will let you borrow the rest.
The EUR/USD price moves up and is trading at 1.13010/1.13120 after 3 hours. You have enjoyed a move of 4.07 points and your profit is (100,000 euros *1.13010)-(100,000 euros*1.12603), or $407, when you sell.
Making Money with Forex in Ireland
Attribution: Pxfuel
You can make money in many ways in the forex market.
- Shorting a currency: You can borrow a currency and sell it for a high price, buying it back later for a lower price. This is shorting and it takes advantage of downward moves in the market.
- CFDs: Contract for differences (CFDs) are not currency pairs. They track currency pairs. Depending on the broker you choose, you will be using CFDs instead of buying and selling actual currencies. Practically, using CFDs is the same.
- Binary options: You can trade currencies using a simple yes/no metric instead of tracking the direct movement of a currency pair.
Best Online Forex Brokers in Ireland
When you get ready to invest, you have a number of viable forex brokers in Ireland to choose from.
HYCM
Pairs Offered
69
FOREX.com
Pairs Offered
80+
Account Minimum
100 of your selected base currency
Pairs Offered
80+
1 Minute Review
FOREX.com is a one-stop-shop for forex traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.com is impressive, remember that it isn’t a standard broker. You can’t invest in the stock or bond market through your FOREX.com and you cannot open an account with tax advantages. The confusing pricing and margin structures may also be overwhelming for new forex traders.
Best For
- MetaTrader 4 users
- Beginner forex traders
- Active forex traders
Pros
- Impressive, easy-to-navigate platform
- Wide range of education and research tools
- Access to over 80 currencies to buy and sell
- Leverage available up to 50:1
Cons
- Cannot buy and sell other securities (like stocks and bonds)
- Confusing margin requirements that vary by currency
- Limited customer support options
- Cannot open an IRA or other retirement account
eToro
Pairs Offered
47
Account Minimum
$50 USD
Pairs Offered
47
1 Minute Review
Though Australian and British traders might know eToro for its easy stock and mobile trading, the broker is now expanding into the United States with cryptocurrency trading. U.S. traders can begin buying and selling both major cryptocurrencies (like Bitcoin and Ethereum) as well as smaller names (like Tron Coin and Stellar Lumens).
eToro offers traders the opportunity to invest their assets into premade portfolios or cryptocurrencies, similar to services offered by robo-advisors through traditional brokers. Though eToro isn’t a one-stop-shop for everything an investor needs, its easy-to-use platform and low spreads is a great way to enter the cryptocurrency market.
Best For
- International Forex/CFD Traders
- New cryptocurrency traders looking for an easy-to-use platform
- Traders who want to buy and sell cryptocurrencies on-the-go
Pros
- Simple platform that is easy to master
- CopyTrader feature that allows new traders to copy the same strategies used by professionals
- Virtual dummy account that gives you $100,000 to practice trades
Cons
- U.S. traders currently limited to cryptocurrencies
- Only 15 major coins available to trade
AvaTrade
Pairs Offered
50+
Account Minimum
100 EURO
Pairs Offered
50+
1 Minute Review
A fully regulated broker with a presence in Europe, South Africa, the Middle East, British Virgin Islands, Australia and Japan, Avatrade deals with mainly forex and CFDs on stocks, commodities, indexes, forex, cryptocurrencies, etc. This brokerage is headquartered in Dublin, Ireland and began offering its services in 2006. It offers multiple trading platforms and earns mainly through spreads.
Best For
- Beginners
- Advanced traders
- Traders looking for a well-diversified portfolio
Pros
- Controlled by regulatory agencies of multiple countries
- Choice offered in terms of trading platforms
- Support available in 14 languages and trading platforms in 20 languages
- Practice/demo account available for trying out
- Breadth of trading assets
Cons
- Does not accept customers from the U.S. as it isn’t regulated in the U.S.
- Transferring funds to the account may take up to five days; withdrawals could take up to 10 days
Forex Terminology
Before investing, it’s good to learn the lingo of the industry.
- Pip: Also known as a basis point, this is the smallest unit that forex uses.
- Lot size: The lot size is the amount you trade in a single order. A standard lot size is 100,000 units of a currency.
- Orders: You give an order to the forex market just like you give an order to a waiter.
- Calls: This is a contract that lets you buy or sell a certain amount of currency at or before a certain date.
Investing in the World
Forex may be easy to learn, but it is difficult to master. Investors spend their entire lives dealing with the nuances of currency, so give yourself time. Trade using a virtual account (a fully functional account with fake money) before using real money to invest.
Be sure to bookmark this page for updates on forex. Read as much as you can about forex at Benzinga and how to profit from it.
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2020-06-26 18:56:15Z
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