How to Trade Forex?

Isabel V. from Sao Paolo, Brazil: I heard that forex trading is really profitable. So how do I trade forex and can you explain it to me in layman’s terms? Do you have any brokers to recommend?

Hi Isabel and CompariZone readers, forex trading works much like stock trading wherein you buy the currency when the price is low and you sell it when the price is high. Your objective as a forex trader is to exchange one currency for another with the expectation that the currency you bought will have a higher value compared to the one that you sold.

For example, let’s say you bought 1,000 Euros for a EUR/USD exchange rate of 1.1500. The exchange rate is basically the value of one currency against another currency. In this case, the EUR/USD exchange rate will be the value of 1 Euro in US Dollars. A week later, the exchange rate has increased to 1.2500 and you sold your 1,000 Euros. That means you earn a profit of 100 US Dollars.

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With regards to your question about the best brokers that we can recommend, one of the most popular and trusted brands in the market today is Plus500. You may click here to access their website. Your capital is at risk.