Forex Trading without a Broker

Is forex trading without a Broker possible?

So I found that very interesting question “Is forex trading without a Broker possible?” as a comment under one of the videos at our website and I started thinking about the person who wrote it and I remembered a quote that I saw on facebook few hours ago “The only stupid question is the one you never ask.” which made me think that I might help him by answering his very basic but unanswered question and show him a direction from where to begin his forex trading journey.

The short answer is YES. You can trade on your own without forex broker. To do that simply go out and find local exchange bureau that will give you good exchange rates and buy the currency you like or you think will make you rich. There are many limitations in that case. Please read below to find detailed explanation.


forex trading without a Broker


I do not consider myself a forex trading specialist but let say I know the basics ???? and if you think that my point of view is wrong or I missed something please do not hesitate to add it in the comments below this article.

So before answering the question with more details we actually must ask a few other questions to give us the right direction and a good point of view.

The first question is “What is forex?” or in other words “What is the forex market?”.
The second question is “What is forex trading broker?”.
The third question is “What is forex leverage?”.
The forth question is “What is the best forex leverage for beginners?”.

“What is forex?” - I will try to keep it short.

The forex market is an online network of banks, other financial institutions, corporations, account managers and individual traders who buys and sells any kind of national currencies, crypto currencies (recently added), indexes and commodities.

Usually to get access to that network you need a broker to take out to the market your orders. If you want to get more details about what is the forex market then take a look our article series: How To Start Trading The Forex Market?

Now let me answer the other question “What is a forex trading broker?”.

In general forex trading broker is a financial services company that provides access to a platform for buying and selling foreign currencies and other assets. However, that is not the only thing they do. There are few more important things that only trading with broker can be granted to you. For example: leverage.

“What is forex leverage?” – can I eat it or may be drink it!?

If you don’t know what the leverage in forex means then read along…
Imagine you have 1 US dollar and you want to exchange it for euro, because you feel like the euro will rice in the next 2-3 days. You get your dollar and take it to your local exchange bureau and you sell your dollar for euro. Just for this example let assume that the exchange rate at the local bureau is 1 to 0.8 which means you will get 0.8 euros for your dollar and you go home. After a few days while you watch the financial news you hear that the euros vs dollars have grown with 500 pips that day and the reporter sound excited about it…

You grab your coath and run out to your local exchange bureau where you would ask to sell the euros you have (0.8) for dollars but unexpectedly you see some contempt at the cashier’s eyes while he was calculating your “winnings” then he hands you over $1.04 USD dollars…. So you get your winnings (probably disappointed) and go home. You sit on the coach and start calculating what would it be the amount of your winning if you only had $100 000? Well if for 1 dollar you have got 0.04 then if you had $100 000 then you would win something like $4 000! Amazing right?

Well forex trading brokers are actually giving you that opportunity to trade with larger amounts than you can effort. That is called forex leverage.

Forex leverage

Keep in mind that with high leverage you will not only gain bigger profits faster but you can also hit the zero faster. It goes in both directions. As Peter Parker’s uncle said “With great power comes great responsibility”!

Forex leverage risks


After knowing what is leverage in forex you might ask yourself…

Can I invest $1 and trade with million dollars then?


Trade with high forex leverage

Sorry but NO or probably not.

Almost every true forex broker expects you to invest at least $100 - $200 initial deposit. Because your initial deposit for opening a real trading account is related to your success some brokers require higher initial deposit. It is for your protection. Well that way you might lose more but it strictly depends on your awareness and knowledge. I will explain more about the ways you can protect yourself and the ways most brokers are protecting you and your asses in other article of my blog somewhere in the near future.

Lets get back to the leverage!

The popular ratios are 50, 100, 200 and 400. There are more but those are quite popular among most brokers. UgH!?! You have no idea what did I just wrote right? Take a look at the table below for better understanding.



Leverage Amount traded Required Margin
1:1 $100,000 $100,000
2:1 $100,000 $50,000
50:1 $100,000 $2,000
100:1 $100,000 $1,000
200:1 $100,000 $500
400:1 $100,000 $250


Let me explain the date in this table.
Leverage is the leverage ration the broker can provide.
Amount traded is the amount you will be trading with if you choose that leverage ratio.
Required margin is what the broker will require in order to provide that $100k for you to trade with.

Well then... “What is the best forex leverage for beginners?”

As per what you already learned from my answer above you should be able to answer that question yourself. Can you?
Dont worry if you cant. You are forgiven. I love giving life examples because it seems like people understand me better this way. So here is the example I can give you for you to easily answer that question... Imagine that you just purchased a new car but you are not very experienced driver. The car is super nice and fast.

Can go with 20km/h and can also go with 200km/h. I know, i know... we all like the high speeds but let assume for this example that we are not trying to kill our self's for once. I want to ask you a simple question. Will you have more control over the car if you drive it with 200km/h or 80km/h?

It was easy right? It is the exact same thing when you trade forex. If you are beginner trader you would rather have more control over your trades than trading like a mad person and lose everything in one day. Trading with lower leverage ratio will allow you to lose money slowly which will keep you in the market longer.

You might have heard that forex is going to make you rich... pf. Forget about it. Im not saying it is impossible. It is but it takes time and effort. If you expect to jump in and start showering with money from day one, two or even after day five then I strongly advice you DON'T!

Trading forex is a long run where you will deal with a ton of losses and small profits for the first months... only if you are lucky. That is totally normal. There are many things to learn before you get to the point when your successful trades rate will be higher from your losses rate at the end of the month.

There is no short cut or easy peasy button to click yet. That is why I always recommend to start trading with a demo account, hit the zero few times and if you manage to start getting some persistent good results and you are feeling ready only then make your first deposit.
If you don’t have a trusted forex broker till now then I can recommend one which I use and you can jump in and open a demo account from HERE.

If you are totally new to trading you might want to get some FREE courses about the most popular trading platforms MT4 (MetaTrader 4) and MT5 (MetaTrader 5). Enjoy those lessons and share your feedback with us latter ????

Thank you for reading and if you have more questions just type them below in the comment section.

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