Forex trading - Trade CFD & Forex with nextmarkets

Last updated: 20.05.2020
Gerry Celaya
Gerry Celaya
CFD & Trading
> 25 years

A panel of nextmarkets experts is on hand to provide traders with insight into their Forex and CFD trading strategies. Even for traders that have just started trading, these hints and tips will have them sailing through the strategies and indicators in no time.

Users have the opportunity to start off their trading with a nextmarkets demo account. This demo account offers €10,000 in virtual currency. Traders get to experience trading in a real-time environment without any trading risk.

nextmarkets investors

Forex Trading and CFD Trading Difference

Traders who would like to start off their nextmarkets trading journey should first decide whether to open a CFD account or a forex demo account. However, before opening the account, it helps to have a basic understanding of each.

Forex trading:  The trading of currencies to gain a profit from the currency fluctuations. This can take place between the major currencies such as US Dollar and British Pound, but can also include the trade of more exotic currencies such as the South African Rand.

CFD:Contracts for Difference refers to contracts that cover various parts of the market. This can include indices, commodities, and more.

CFD Trading Software

Forex Trading Reviews

One of the most important things a Forex trading site needs to do is ensure that they provide a service that is beyond reproach.  At nextmarkets, we believe that our customer reviews will provide the ultimate feedback of our success. Our forex trading reviews are of cardinal importance to ensure that our trading platform is able to compete with the best.

Users should look out for trading platforms that provide them with the opportunity to trade in a safe environment, provide sufficient trading, and underpin all of this with world-class service and support.  With the use of a Forex trading app, users can keep abreast of the latest forex reviews even on their daily commute.


CFD Trading Reviews

CFD Trading is often a new concept to traders, considering that CFDs aren’t traded all over the world. In fact, in certain countries such as the United States, CFDs are not allowed to be traded. That being said, the UK embraces CFD trading as it fills a gap that other trading instruments rarely do.

This does, however, mean that nextmarkets has a greater responsibility in terms of their CFD trading reviews, as these will form a critical part in the decision-making process by their users. While the CFD trading risks are something to consider, users who make use of the CFD app will be able to keep abreast of CFD developments even when they’re on to go.

Trading software by nextmarkets

Best Forex Traders of All Time

British traders are well aware of one of the best Forex traders of all time as he is infamously known as the Father of Black Wednesday. George Soros, founder of Soros Fund Management, was responsible for sinking the Pound Sterling after short selling £10 billion. This move netted him a profit of £1 billion and world fame, or rather, infamy.

Andrew Krieger is another trader who profited from short-selling a major currency. For Krieger, the New Zealand dollar was the focus of the short sell and the move made a profit of £235 million for Banker’s Trust, with £2.35 million finding its way into his pocket. Users have access to insights from traders like these at nextmarkets.

Fact Check

Thanks to online trading with nextmarkets, clients now have the opportunity to test their trading skills by setting up an online trading account. Forex and CFD trading seem to be two of the most popular choices, however, little seems to be known about CFDs:

  • CFDs are popular in various financial underlyings e.g. equities, indices, commodities, and currencies
  • CFD trading is a popular means of trading in the UK, however, the US still doesn’t have it cleared by the Securities and Exchange Commission (US based Regulator)
Day trading for beginners

Is Forex Trading and CFD Trading Through nextmarkets Legitimate?

One of the fundamental parts of getting into any new type of investment is knowing whether that particular product is legitimate. Foreign exchange has been around since the birth of currencies and contracts for difference were introduced in the nineties. While forex and CFD trading products themselves are legitimate, users are recommended to keep a close eye on the platforms they use. For users, this due diligence has already been done, which shortens the time it takes to sign up with nextmarkets.

Possible warning signs to look out for include trading sites that have bad reviews, difficulty getting money out of the online trading account, and sites that seem purely sales-driven. Is forex trading legitimate? That will largely depend on the platform used. Try to test out the site first by playing around with the nextmarkets forex trading app first.

Free Forex Software

Things To Know Before Trading Forex at nextmarkets

Forex trading can be very unforgiving and for those who pursue trading full time, a lot is at stake. For traders, one of the best pieces of advice would be to only use funds for trading that they can afford to lose. This means trading should only take place with spare capital, which means that even in the event of a loss, it won’t affect a trader’s livelihood.

Another key consideration is to manage leverage. Even traders who have been trading forex for a long time will need to ensure that the leverage is kept at maintainable levels. Making use of the nextmarkets forex signals app will help a great deal.

CFD Trading Risks

For investors, a critical part of their investment style includes their appetite for risk. When trading CFDs, investors are comfortable with the high risk associated with this type of trading. This is because a CFD trades on margin and this margin can be small i.e. have a high leverage. Even the slightest upheaval in the market can affect the profits and losses of the trade. CFD traders may enjoy a higher potential for trading profits, but this also means that they should expect to carry a higher degree of risk.

Four of the fundamental risks in CFD trading that investors should be aware of include counterparty, liquidity, market risk, and client money risk. A way to curb this is by learning what is cfd trading risk and how to trade cfd stocks. nextmarkets offers a library of information to users.

Learn how to trade with nextmarkets

Forex Trading Scams

Forex traders conclude trades in excess of £1 trillion per day and it’s only natural that there is some trading platform out there that promises the secret formula to fast and easy profits. There are three main forex trading scams traders need to familiarize themselves with in order to reduce unnecessary losses. The first is a unique algorithm that will allow them to unlock the vast riches of the forex market.

This secret formula is unheard of and not used by anyone else, but happens to be a phony sales pitch. The second is the unscrupulous broker who will not flinch at investing in the highest risk currency pairs, or just running off with the cash. Finally, traders need to keep an eye out for is a pooled fund of forex trades, infamously referred to as a forex investment management fund. At nextmarkets, we offer a simple yet safe trading solution to traders.

CFD Trading History

Traders who are interested in trading but don’t necessarily want to own the asset should give contracts for difference a try. A CFD allows traders to profit from a bull or bear market on an asset without actually owning the stock. This type of trading came about in the nineties when traders discovered a gap in the market where trading was concerned. Whilst hedge funds started using CFDs, retail traders were soon able to use them themselves.

These contracts allow traders to invest in assets without a large financial outlay, while the profits are generated according to the difference in price of the underlying. This means higher earnings, but it also spells disaster for those who lose on their trade. CFD trading reviews often reveal these mixed feelings about the product. At nextmarkets, we provide traders with sufficient information to make optimal trading decisions.

Forex App by nextmarkets

Can You Make Money Trading Forex at nextmarkets?

There are more than enough forex traders, and successful ones at that, to prove that traditional methods of trading forex and online forex trading such as that offered by nextmarkets can be lucrative. While there are many trading secrets out there, one of the best sources of information for traders is getting their hands on the best forex trading books out there.

Not only will these provide helpful tips and insights to the industry, they will also answer the age-old question: Can you make money trading forex? Successful traders ensure they use all the resources available to them, including forex trading news, learning what is forex, understanding forex signals, using the forex calendar and forex indicators, and knowing the forex trading hours.

How Do Traders Determine Their Risk Appetite?

Long before investors make their first trade on nextmarkets, they need to determine whether they have a risk appetite for that particular product. Risk can be classified into No Risk, Low Risk, Medium Risk, Above-Average Risk, and High Risk. Forex and CFD trading will fall into the high-risk category as even the slightest changes to the market will affect the trade.

For this reason, traders are recommended to only use their surplus funds to dabble in Forex, especially those who are new to trading. Traders will need to decide whether they want to have any risk attached to losing their funds, bearing in mind that the lower the risk, the lower the potential for earnings as well. Mutual funds, for instance, are a slightly safer bet, however, more than 90% of mutual fund managers underperform the market.

how to trade CFD

Did you know?

Both Forex and CFD trading have some interesting facts:

  • Forex is the largest financial market in the world and trading is expected to be around £3 trillion per day
  • The London Stock Exchange is the busiest in the world, account for nearly 42% of all trades, making the Pound Sterling the most vastly traded currency on the planet
  • The opening position on a CFD is minimal compared to the trade, which makes it far easier for the man on the street to partake in CFD trading

Trading CFD For A Living at nextmarkets

Apart from trading forex on nextmarkets, traders also have the opportunity of trading CFD for a living. Just like online forex trading, CFDs can also be traded online. Traders merely need to sign up to the nextmarkets platform for access to these services.

These platforms tend to offer more than just the online broker software and the cfd software as it provides in depth information and support on how to trade CFDs. Brokers may also have access to various payment options such as CFD broker paypal services through online CFD platforms. Traders who wish to trade CFDs for a living should do the relevant training before spending their own funds on trading, as well as build up a separate trading account.

Free share trading software by nextmarkets

Forex Trading and CFD Trading News

For traders, keeping abreast of the latest forex trading and CFD trading news is an essential component of successful trading. News to look out for include political gatherings that could change economic landscapes such as Brexit and the G20 summit. Those who trade in specific currency pairs or CFDs will want to keep a close eye on local affairs such as fuel price hikes, strikes, and disinvestments.

Those who decide to trade in exotic currency pairs also need to keep an eye on those domestic issues and how slight changes to major currency pairs such as EUR/USD and GBP/USD affect the smaller currencies. Fluctuations in commodity prices also have an effect on forex. Certain cfd trading strategies and forex trading strategies are designed to curtail this and more information is provided on the nextmarkets site.

Best Forex Trading and CFD Trading Books

The “For Dummies” range has always been a winner from those who wish to learn the basics of using their computer to those who want to learn chess. Traders also have their share of the pie with the “Currency Trading for Dummies” edition which was written by Brian Dolan and touted as one of the best books for forex traders.

Another that should find its way to any serious trader’s shelf, is “Day Trading the Currency Market” by Kathy Lien. For CFD traders, “CFDs Made Simple” by Jeff Cartridge and Ashley Jessen is a must. Another favourite is “Real Traders 2” by Eva Diaz. Keep an eye out for more recommendations on the nextmarkets site.

best trading app

Trading Forex and CFD at nextmarkets

One of the most important traits of any good trader, is the ability to trade without allowing an emotional response to market volatility. Both Forex and CFDs rely heavily on market influences. Those who want to discover the answer to the question “is Forex trading profitable?”, will have to test the waters. This question is often met with a barrage of responses and investors are often told to steer clear unless they want to lose all their money.

The reality of trading Forex and CFDs on the nextmarkets platform is a little less severe, as traders often follow strategies that have been implemented and perfected by traders before them. A good way to get started is by working through broker for beginners and forex trading for beginners.

Should Traders Trade Directly Or Go Through Robo Advisors?

One of the best advantages of modern technology, is that traders no longer have to wait days or hours to complete their trades as this happens instantly online now. Traders also have the option to make their adjustments when they pick up something in the daily analysis. This could take them a good couple of hours to work through.

When trading Forex and CFDs, traders also have access to automated forex trading such as those offered by robo advisors. With the help of AI, traders now merely have to select their parameters and the robot does the rest. The advantage is that traders now have their hands free to take on more work. The disadvantage is that when the market swings and the robo advisor didn’t make any adjustments, the trader will always wonder whether they would have made a different decision.

The Convenience of Trading Forex and CFDs at nextmarkets

One of the best parts of trading through nextmarkets is that traders have the opportunity to make their trades from their home or office by using the nextmarkets trading software. Traders on the go will have access to the trading app on their mobile devices, which means a quick trade can be facilitated in between meetings or while commuting on long train or cab trips.

The daily analysis is also available via desktop or mobile device, allowing traders to stay in touch with their trades all the time. Friendly and efficient support allow traders to query and problems or report errors without hassle.

Online Trading for Beginners
Smarter CFD & Forex Trading
  • 1000 CFDs on indices, shares, cryptos, and bonds
  • Up to 100 trading ideas per month in real time
  • Free & unlimited demo account