If you are looking for how to get started with Forex trading in the Netherlands, you have come to the right place. Below, we go over all the basic steps a beginner needs to start their trading journey in the forex world. From setting up an online brokerage account to different trading strategies, we’ll cover everything you need to learn the basics of trade forex understand in the Netherlands.

Getting started with Forex in the Netherlands

Trading Forex in the Netherlands is a fairly simple process once you know how to get started. If you’re completely new to the world of trading, check out these simple steps to set everything up so you can start selling and buying currencies in the forex market.

Connect to the Internet

First of all, you need to have a stable and strong connection to the Internet so that the currency value changes are accurate. If your connection drops often enough, it can negatively affect your ability to trade. This can lead to misreading of currency values ‚Äč‚Äčthat have changed from what you see on your screen and unprocessed transactions when you lose your connection. This can lead to lower profits and more missed opportunities for good trades.

Open an investment account online

Before you start trading, you need to create an online brokerage account which will allow you to access the forex market to start your trading journey. You need an online brokerage account to process your trades because you cannot buy or sell currencies directly. The brokerage you choose must be regulated by the AFM, the Financial Markets Authority.

Fund your account

Once you have set up your online brokerage account and verified your identity, you will need to fund your account. The most common way for traders to do this is to connect their bank account to their brokerage account and transfer money directly to their online brokerage account.

Download your trading platform

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Most trading platforms have mobile and desktop apps that you can download to your devices. This allows you to trade on the go without your computer. It also lets you track your transactions throughout the day, so you’re not behind your desk indoors.

Place your 1st trade

Once you have followed all the steps above, it is time to make your very first trade in the forex market. Before jumping straight into trading, it is always a good idea to understand how the market works and the different trading strategies you can use. Read below and learn about some of the most popular trading strategies that you can use on your trading journey.

Netherlands Forex Trading Strategies

When you start with forex trading, it’s a good idea to limit yourself to currencies that you are familiar with and that are relatively stable. EUR/USD currency pairs are good examples. When you trade this currency pair, you are exchanging your euros for dollars and then selling the dollars for a higher price than you originally paid, making a profit. In Forex trading, there are two main strategies that traders commonly use.

Fundamental analysis

The first strategy uses fundamental analysis to guide decisions regarding trades made. This form of analysis uses indicators such as a country’s economic situation and forecasts for the future to help predict the movement of currency prices in the days or weeks ahead. Inflation rates, interest rates, and GDP data are some of the most common things traders pay attention to when deciding which currencies to buy and sell.

Technical analysis

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Technical analysis is the second trading strategy used by traders to execute trades. This puts a lot more emphasis on charts and uses software to track small moves that provide clues about price movements. This type of trading strategy requires a lot of dedication to spot patterns and successfully predict currency changes to ultimately achieve profitable trades.