Who doesn’t want to earn money at a young age? With the rise of social media and influencers promoting forex signals, there are more teens than ever trying to get into the forex trading industry. Financial assets have long been a source of profit for traders. Any young individual who desired to build a fortune has always found it appealing. However, becoming a trader comes with several conditions, one of which is that you be of legal age.
Trading is a risky business, and if you make a mistake, you might end up in debt for the rest of your life. Thus, one should understand that forex markets are complex and broad because even an experienced person can fail or can lose money anytime. This is why one of the trading conditions is age.
Is investing under 18 illegal?
It’s never easy money in Forex; there is always a possibility of losses. It’s easy to see why so many teens are drawn in because of the rise of forex traders updating their Instagrams and continually showcasing earnings.
Unfortunately, trading forex under the age of 18 is prohibited. You should not trade with a broker who offers an account to someone under the age of 18 since they are breaching the law. A broker that accepts a minor trader should not be trusted if they are willing to break the regulations.
When it comes to risk management, most teen traders aren’t going to have the risk management experience necessary to survive in today’s volatile financial markets.
Trading If You’re Below 18
Although it is illegal for anyone under the age of 18 to open a forex trading account, does that mean that you can’t trade at all? Fortunately, under-18s can still participate in the financial markets, but with fake money. Here are some alternatives to trading accounts you can try!
Paper Trading
The majority of teenage traders believe they know what they’re doing. Reality comes to mind, even professional traders lose and only make a few percent on a good month. This is why teen traders are encouraged to practice paper trading first before entering the complicated market of Forex trading.
Paper trading involves viewing the live markets and charts in real-time, then drawing on your positions, stopping losses, and taking profits – but not taking the transaction. You then log the results of your trading, honestly, in a spreadsheet. Paper trading is something that all forex traders have done hundreds of times.
It’s best to practice first until you develop your own Forex trading strategy.
Backtesting
Backtesting is the technique of trading previous price data in real-time in order to practice a trading strategy or risk management. The importance of backtesting cannot be overstated, and almost every successful trader has done it for tens of thousands of hours. If you’re decided to enter the trading industry, you’ll be far better off starting with backtesting before you turn 18.
Demo Trading
Demo account trading is the ideal way to get started in forex trading if you are under the age of 18. Some brokers will provide you with a demo account without requiring you to open an account, while others will not.
With demo account trading, you’ll get to practice your trading techniques. If your strategy is going to succeed, you should see regular gains in your demo account trading in the first three to six months. But if not, you need to reevaluate your approach to FX trading and risk management.
What To Do Before Entering Forex Trading
If you are still under 18 and really eager to enter the market, it would be best to stay safe and follow these suggestions below:
Studying studying its concept will make a huge difference. As a young person, you have a lot of spare time and little to no responsibilities. It would be helpful to devote at least a few hours a day to learning about forex if you’re considering it as a career. You need between six months and two years of practice before you can regularly trade. People underestimate the length of time it takes to complete a task. Therefore, it’s always best to start early!
Prop Firm Funding
If you’re under the age of 18, opening a forex trading account in the name of a relative may seem like a decent idea. If the broker suspects you’re doing this, he or she may report you and your family member for violating the law. Unlike typical hedge funds and investment banks, which use the money of their clients to fund their operations, prop trading businesses fund their operations with their own resources.
Best Age To Trade
There is no right or wrong answer to this question. Whether you start young or you start late, it doesn’t matter. Each age group has its own set of advantages, and there is no such thing as an ideal age for Forex. The character traits of a successful forex trader are what make them successful, not their age.
Open A Demo Forex Trading Account With Decode Global
While there is no specific age to start trading forex, it’s essential to be aware of the risks and rewards of this type of investment. By opening a FREE demo forex trading account with Decode Global, you can experience the thrill and excitement of currency trading without risking any real money. With our help, you can learn how to trade like a pro in no time. Ready to get started?