For Beginners: Open FBS FX account and a Welcome Bonus?
Get FBS’s 100 USD Welcome Bonus
FBS’s 100 USD Welcome Bonus is a campaign where you can receive a bonus (trading margin) just by opening an account with FBS and start Forex trading without making a deposit.
This type of account opening bonus is often called the No Deposit Bonus or Account Opening Bonus.
Just like any other account opening bonus, FBS’s 100 USD Welcome Bonus has the feature that “no need to deposit for FX transactions = no deposit”, thus you can start FX transactions with zero initial investment cost.
This is the most popular and best-valued campaign for traders who are starting FX.
FBS’s 100 USD Welcome Bonus can be received only by opening a FX account with FBS, but opening the account also includes procedures called account activation (account approval, KYC) such as submission of necessary documents.
Go to FBS Official Website, open a live trading account and follow the on-screen instructions to get 100 USD Welcome Bonus today.
Online Forex trading – Guide for Beginners
Many people want to start FX, but they feel that they don’t know what to do.
No Deposit Bonus promotions can be a great start for any beginners in the Forex market, who are new to online trading.
For FX, the stage before starting is very important.
In this article, we will explain the basics of FX that you should know at least before you start trading, such as the mechanism of FX and points for choosing a company.
What is Forex?
FX is an abbreviation for “Foreign eXchange” and refers to trading in different currencies such as USD, EUR and GBP.
There are two ways to make a profit with FX, which are “get an exchange gain” and “get a swap point”.
1. Get the exchange gain
This is a method of aiming for profit generated by fluctuations in exchange rates.
Let’s use an ordinary foreign currency transactions as an example.
For example, suppose that you buy 10,000 EUR for 10,000 USD when the price is 1 EUR = 1 USD.
Let’s assume that the exchange rate fluctuates to 1.05 USD per EUR.
If you exchange 10,000 EUR to USD when 1 EUR = 1.05 USD.
“10,000 EUR x 1.05 USD = 10,500 USD”
In this case, the 10,000 USD you had prepared for the initial purchase of 10,000 EUR would have earned a profit of 500 USD by purchasing the EUR and then returning it to USD.
This is the “foreign exchange gain.”
In addition, in the case of FX, you can start trading not only from “buying” but also from “selling”.
There is also a merit that you can aim for a foreign exchange gain in both the situation.
However, if the market price does not move as expected, the transaction will reduce your money.
2. Get swap points
Next option to make profits in the Forex market, is the “swap point”.
Swap points are the adjustments to interest rate differences between the currency pairs you buy and sell.
It basically uses the difference in policy interest rates of different countries.
Basically, for each currency pair, you can receive swap points if you buy a currency of a country with a high interest rate policy.
If you buy a currency of a country with a low policy interest rate. You pay for the swap points.
Swap points occur when you hold a position in FX and carry over until the next business day.
For example, in the case of a EUR/USD currency pair, the USD has a higher interest rate policy than EUR.
If you carry over to the next business day while holding the EURUSD sell position, you can receive the interest rate difference adjustment amount, which is the day-to-day conversion of the amount caused by the policy interest rate difference, as swap points.
However, positions held for swap points are naturally affected by exchange rate fluctuations.
It should be noted that if the stop out occurs due to exchange rate movements, there is a possibility that the loss may exceed the profit obtained at the swap point.
On FBS’s MT4 trading platform, you can clearly see the latest Swap Points of each currency pairs, thus you can easily decide which direction to hold a position to earn swap points.
Forex trading has high Leverage
One of the characteristics of FX is that you can invest more than you actually have.
This uses a mechanism called leverage that is peculiar to FX.
“Leverage principle” means the lever.
It means investing more than you really can with your money, just as you use your leverage to generate a large amount of power.
For example, in the case of ordinary foreign currency transactions, you will need “1 USD x 10,000 = 10,000 USD” to purchase 10,000 EUR at an exchange rate of 1 USD = 1 EUR.
However, if it is FX with FBS, you can multiply the deposit money (margin) by 500 times the maximum leverage, so if you trade 10,000 USD at the exchange rate of 1 USD = 1 EUR, you only need 20 USD.
In this way, FX has the great advantage of being able to carry out foreign currency transactions larger than your own funds by multiplying leverage.
FBS offers up to 1:1000 high leverage for trading of Forex currency pairs.
Know the risk of Forex trading
FX has the merit of being able to trade foreign currency more than the deposited funds.
However, on the other hand, if the exchange rate does not move as expected, there is a risk that the loss will inflate and serious damage will occur.
Suppose you purchased 10,000 currencies at a rate of 1 USD per EUR, as in the previous example.
After that, if the EUR rate rises and the USD drops to 0.95 USD, you will incur a loss of 500 USD when converted to USD.
In FX, when a certain amount of loss occurs with respect to the margin money, forced loss settlement called “Stop Out” is triggered, and the loss can be fixed without exception.
If you make a large deal without enough margin just because you can multiply leverage by 1000 times with FBS, a slight price movement will immediately trigger a stop out.
In addition, as a result of the rate rising and falling above the stop out line, there is a possibility that you will lose more than your margin and your FX account deposit will be negative, and you will be in debt.
Fortunately, FBS supports NBP (Negative Balance Protection) for all live trading accounts.
FBS’s NBP protects you from exceeded losses thus you do not lose more than the total account balance with FBS.
Choose the right FX broker for you
There are so many online Forex and CFD brokers in the world, and your selection of the broker can even affect the amount of profit you can make eventually.
Let’s see 4 main points that you must check when choosing a FX broker, and why FBS can match them all and can be your selection here.
1. Free Learning Courses for Beginners
The first is to choose an Forex company that is rich in content such as articles and videos that explain Forex trading for beginners.
We have already mentioned that in FX trading, there is a risk of suffering a large loss, but these risks can be reduced by acquiring some investment knowledge.
Therefore, you should learn about FX in advance and then engage in trading.
Forex companies that have abundant commentary content for beginners, in most cases, explain it along with how to use their own tools.
Therefore, just by looking at the explanation contents of the Forex company, you will be able to learn “how to specifically handle the risk to reduce the risk”.
FBS is welcome to Forex beginners with a full set of educational contests for free.
2. Availability of Demo account
With FBS, you can also start from a “demo account” where you can practice trading for free.
The demo account is a tool that allows you to make simulated trades using the exchange rate delivered by FBS based on the hypothetical initial investment amount.
Most demo tools deliver real-time rates that are about the same as real exchange rates.
The demo account has some differences from the actual trade, such as the movement when the exchange rate fluctuates, but you can gain a sense of the trading method and exchange movement.
By trading in a demo account with a stop out simulation, you gain a sense of “risk management” such as “how much the exchange rate moves and how much loss will occur” and “how much the USD will lose before it is stop out.”.
FBS’s Demo trading accounts can be opened for free and provides the real trading conditions but with virtual money.
3. Trading from 0.01 micro lots
If you want to start trading carefully, open an account with an FX company that can trade FX from 1,000 currency units.
The minimum unit of “transaction quantity” that can be traded differs depending on the FX company, but there are cases where some FX companies can only trade from 100,000 currency units.
Needless to say, it can be said that the financial hurdle is lower if you can trade in 1,000 currency units.
Be sure to check before opening an account.
FBS has prepared multiple trading account types which offer cent lot trading, thus you can minimize the trading volume and the risk at the same time.
4. 24 hours customer support
Before choosing a broker, you should check the support system firmly.
Depending on the company, there are cases where only the support system during business hours is available, such as “only inquiries by phone are available from 9:00 to 17:00 on weekdays”.
Business workers will often trade after returning home.
If you are a Forex company with a 24-hour support system, you can immediately contact them if you have any problems or questions.
There are many ways to make inquiries, such as email, live chat window and phone call.
Make sure to check that the inquiry method that suits you is available.
FBS has multilingual customer support team ready for 24 hours a day and 5 days a week.
You can contact FBS’s customer support via email, phone call or live chat.
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