How to Forex Trade for Beginners on Phone: A Complete Guide

Forex trading involves buying and selling currencies in the vast foreign exchange market, the world’s largest and most liquid.

It offers a flexible and potentially lucrative income stream, accessible anytime with an internet-connected mobile device.

Curious about starting forex trading on your phone?

This article guides beginners on the basics, apps, steps, and strategies, facilitating on-the-go forex trading.

forex traders working on mobile devices:
Forex traders working on mobile devices:

Understanding Forex Trading Basics

Before you start forex trading on your phone, you need to understand some forex trading basics, such as:

Currency pairs:

A currency pair is a combination of two currencies that are traded against each other.

For example, EUR/USD is the currency pair that represents the exchange rate between the euro and the US dollar.

The first currency in the pair is called the base currency, and the second currency is called the quote currency.

The price of a currency pair indicates how much of the quoted currency is needed to buy one unit of the base currency.

For example, if the EUR/USD price is 1.2000, it means that you need 1.2 US dollars to buy one euro.

Exchange rates:

An exchange rate is the value of one currency in terms of another currency.

Exchange rates fluctuate constantly, depending on the supply and demand of currencies, and the economic and political factors that affect them.

Forex traders aim to profit from the changes in exchange rates, by buying a currency when it is low, and selling it when it is high.

Pips:

A pip is the smallest unit of price movement in the forex market, and it is usually equal to 0.0001 for most currency pairs.

For example, if the EUR/USD price moves from 1.2000 to 1.2005, it has moved 5 pips.

A pip is also used to measure the profit or loss of a trade, and the spread, which is the difference between the bid and ask prices of a currency pair.

Trading terminology:

Forex trading involves some specific terminology that you need to be familiar with, such as:

    • Bid price: The bid price is the price at which you can sell a currency pair to the market, or the price that the market is willing to buy from you.
    • Ask price: The ask price is the price at which you can buy a currency pair from the market or the price that the market is willing to sell to you.
    • Spread: The spread is the difference between the bid and ask prices of a currency pair, and it represents the cost of trading. The spread is usually expressed in pips, and it varies depending on the liquidity and volatility of the market.
    • Leverage: Leverage is the ability to control a large amount of money with a small amount of capital, by borrowing money from the broker. Leverage can magnify your potential profits, but also your potential losses. Leverage is usually expressed as a ratio, such as 50:1, which means that you can control $50 for every $1 you have in your account.
    • Margin: Margin is the amount of money that you need to have in your account to open and maintain a leveraged position. Margin is usually expressed as a percentage of the total value of the position, such as 2%, which means that you need to have 2% of the total value of the position in your account.
    • Lot: A lot is the standard unit of trading in the forex market, and it represents 100,000 units of the base currency. For example, one lot of EUR/USD is equivalent to 100,000 euros. There are also smaller units of trading, such as mini lots (10,000 units), micro lots (1,000 units), and nano lots (100 units).

Mobile trading platforms, such as software apps, facilitate forex market access and trading on smartphones or tablets.

They offer features like charts, indicators, and order tools, enabling market analysis, trade execution, and performance monitoring.

Stay connected with real-time updates and notifications on the go.

Choosing a Forex Trading App for Beginners

Choosing a suitable forex trading app for beginners is a crucial step in trading forex on your phone.

There are many forex trading apps available on the market, but not all of them are created equal.

You need to consider several factors when selecting a forex trading app, such as:

User interface:

The user interface is the design and layout of the app, and how easy and intuitive it is to use.

Select an app with a user-centric, friendly interface for smooth and efficient navigation, tailored to your preferences and style.

Features:

The features are the functionalities and capabilities of the app, and what it can do for you.

Select an app with desired features like charts, indicators, order types, execution modes, and trading tools.

These elements aid market analysis, trade management, and skill improvement for enhanced trading performance.

Trading tools:

The trading tools are the additional services and resources that the app provides, and that can enhance your trading experience and results.

Choose an app with useful tools: market news, economic calendar, signals, education, and customer support for informed supported trading.

Broker reputation:

The broker’s reputation reflects its credibility and reliability. Choose an app from a reputable, regulated broker.

Some of the best forex trading apps for beginners are:

FOREX.com Mobile Platform:

FOREX.com, a leading global forex broker, provides an app with an intuitive interface, one-swipe trading, advanced charting, real-time alerts, and comprehensive account management. Download on iPhone or Android.

MetaTrader 4:

This app, the mobile version of MetaTrader 4, the world’s most popular trading platform, offers a user-friendly interface and access to 2,000+ instruments.

Download on iPhone or Android.

eToro:

This app is offered by eToro, one of the leading social trading platforms in the world.

With a sleek interface, the app grants access to 2,000+ trading instruments, spanning forex, stocks, ETFs, commodities, and cryptocurrencies.

The app also offers a unique feature called CopyTrader, which allows you to copy the trades and strategies of other successful traders.

You can download this app on your iPhone or Android device3.

Setting Up Your Mobile Trading Account

Setting up your mobile trading account is the next step in trading forex on your phone.

You need to follow a few simple steps to set up your mobile trading account with a reputable forex broker, such as:

  1. Register by sharing personal details, choose a username, and password, and agree to broker terms.
  2. Verify identity and address by uploading ID and proof of address documents.
  3. Deposit funds, choose a payment method, enter the amount and currency, meeting minimum requirements.
  4. Pay applicable fees based on the chosen method.

Placing Forex Trades on Your Phone

Placing forex trades on your phone is the core activity of trading forex on your phone.

You need to follow a few simple steps to place forex trades using your mobile trading app, such as:

Conducting market analysis using your app’s charts and indicators to identify trends, support/resistance, entry/exit points, and trading signals.

Consider market news and events for potential impact on currency pair movements.

Order type: The second step is to choose an order type

technical indicators and trading tools
for technical indicators and trading tools

Conclusion

Mobile forex trading is a convenient way to profit from the world’s largest market.

Success requires prep, education, discipline, a suitable app, a reputable broker, and a reliable platform.

Our guide covers basics, apps, steps, and strategies for beginner phone forex trading.

Gain insights for responsible trading—practice risk management, continuous learning, and skill development.

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