Forex Factory: A Complete Guide for Beginners

What Is Forex Factory?

Forex Factory is a free forex news and market information website that helps traders track economic events and market-moving data.

The platform also offers real-time news, market insights, and an active trading forum. While it is not a forex broker like XS, Forex Factory serves as a research hub for traders.

Why Forex Traders Use Forex Factory

Forex Factory is widely used because it provides reliable and real-time forex tools in one place.

The platform’s biggest advantage is its economic calendar, which is updated instantly when major news releases occur. Traders rely on it to prepare for high-impact events, such as CPI, NFP, and interest rate decisions.

The Forex Factory benefits include:

• Free access to professional-level tools

• Fast news updates from trusted sources

• A community of millions of traders

• Trade Explorer for performance tracking

• Historical data and market insights

How to Navigate the Forex Factory Homepage

The Forex Factory homepage is organized into several key sections that beginners can navigate easily.

Here’s a quick breakdown of the Forex Factory layout:

• Calendar: View upcoming economic news and market events.

• Market: Live price charts, sessions, and market heat maps.

• News: High-quality news filtered by relevance and impact.

• Forums: Thousands of strategies, trading journals, and discussions.

• Trades: Track real trades posted by members.

• Brokers: Information on regulated brokers worldwide.

For example, if you want to prepare for a high-impact release like the U.S. Non-Farm Payrolls (NFP), simply open the Calendar, filter by “USD” and “High-Impact,” and review previous results.

The interface is simple and designed so that beginners can find everything in seconds.

Forex Factory Economic Calendar: Complete Beginner Walkthrough

The Forex Factory economic calendar is the heart of the platform. It shows all upcoming economic news that may affect currency prices. Here’s how to read it step-by-step.

Understanding Impact Levels (Low / Medium / High)

Each event on the Forex Factory calendar has a color-coded impact level:

• Yellow → Low Impact: Usually causes little volatility.

• Orange → Medium Impact: Can move the market moderately.

• Red → High Impact: Major market-moving events (e.g., interest rate decisions, CPI, NFP).

Why it matters: High-impact events (red) often cause strong volatility. Beginners should be careful or avoid trading during these times.

Currencies Affected

Next to each event, you’ll see the currency symbol (USD, EUR, GBP, JPY, etc.).

This tells you which currency pair may move. For example:

• If the event affects USD, pairs like EUR/USD, GBP/USD, USD/JPY may see volatility.

• If the event affects EUR, focus on EUR/USD, EUR/GBP, EUR/JPY, etc.

For example, if the EUR inflation data is scheduled, expect the EUR-related pairs to react.

Actual vs Forecast vs Previous

This is one of the most important parts of the economic calendar:

• Previous: The last reported value

• Forecast: What analysts expect

• Actual: The newly released number

How the market reacts:

• If Actual > Forecast → currency may strengthen

• If Actual < Forecast → currency may weaken

Simple Example:

If U.S. inflation (CPI) is expected at 3%, but the Actual comes in at 4%: → Higher inflation may signal rate hikes → USD often strengthens.

This basic concept helps beginners understand market reactions without advanced economics.

How to Set Calendar Filters

To make the calendar more useful, you must apply filters:

1. Set Your Time Zone: Click the time zone in the upper right and choose your local time so events match your schedule.

2. Filter by Impact: If you want only high-impact news, select “Red Only.”

3. Filter by Currency: Choose specific forex currencies (e.g., USD, EUR, JPY) to focus on the pairs you trade.

4. Filter by Event Type: Interest rates, GDP, inflation, employment, etc.

These filters help beginners stay focused and avoid unnecessary information overload.

How to Use Forex Factory for News Trading

Forex Factory is extremely helpful for forex news trading, especially for traders who focus on short-term volatility.

Here’s how to use it properly:

1. Open the Forex Factory calendar.

2. Filter for high-impact news.

3. Look at Actual vs Forecast to predict possible reactions.

4. Avoid entering trades right before a major release, spreads widen and volatility spikes.

For example, during the U.S. Non-Farm Payroll (NFP):

• A higher-than-expected number may strengthen the USD.

• A weaker result may weaken the USD.

Always combine calendar information with risk management. News trading is high-risk, especially for beginners.

Forex Factory Forums: How to Learn From Other Traders Safely

The Forex Factory forum is one of the largest trading communities in the world. You will find:

• Trading journals

• Strategy discussions

• Market analysis

• Live trade examples

However, beginners must use the forum carefully.

Many strategies posted by users are not verified, and some may be subjective or risky.

Safe learning tips:

• Follow long-standing members with clear logic.

• Avoid “get rich quick” systems.

• Always test strategies on a demo account first.

• Use the forum to learn ideas, not to copy trades blindly.

Tools & Features: Trade Explorer, Charts, Broker Info

Forex Factory includes several valuable tools that beginners can use:

Trade Explorer

A performance tracking tool that connects to your trading account.

It helps you analyze:

• Win rate

• Risk-to-reward ratios

• Drawdowns

• Trade history

Forex Factory Charts

Free charts with:

• Price action

• Indicators

• Timeframe controls

They are simple but useful for quick analysis.

Broker Information

Forex Factory lists detailed profiles of forex brokers, including regulation status and platform features.

This helps beginners compare brokers safely before choosing one.

Step-by-Step Guide for Beginners (Practical Workflow)

Here is a simple Forex Factory tutorial workflow you can follow daily:

1. Open the Calendar and check today’s events.

2. Apply filters: your time zone, impact level, and currencies.

3. Identify high-risk periods: news like CPI, GDP, and NFP.

4. Check the News tab to understand market sentiment.

5. Visit the Forum for analysis or discussions.

6. Plan your trades based on your strategy.

7. Track your performance in the Trade Explorer.

8. If you’re a beginner, avoid trading during major red news.

This workflow ensures structure, discipline, and better decision-making.

Common Mistakes Beginners Make on Forex Factory

Here are the most frequent Forex Factory mistakes beginners make:

• Blindly copying forum strategies

• Trading every news event without a plan

• Misreading Actual vs Forecast results

• Forgetting to change the calendar time zone

• Overreacting to small impact news

• Not combining news with technical analysis

Avoiding these errors will help you use Forex Factory more effectively and safely.

Forex Factory Alternatives & When to Use Them

While Forex Factory is one of the most popular forex news platforms, several alternatives can complement it or serve as backup sources.

These tools offer different layouts, data feeds, and analysis styles, giving traders more ways to confirm market information.

Investing.com Economic Calendar

A comprehensive multi-asset platform offering news, charts, sentiment tools, and a detailed economic calendar.

Use it when:

• You want data across forex, stocks, indices, crypto, and commodities

• You prefer a mobile-friendly interface

• You need fast updates and broad market coverage

MyFXBook Economic Calendar

A clean, fast-loading calendar popular among algorithmic and technical traders.

Use it when:

• You rely on automated trading systems or EAs

• You need precise historical data comparisons

• You prefer a simple, clutter-free layout

DailyFX Economic Calendar

Backed by a major educational platform, DailyFX combines news events with expert trading insights.

Use it when:

• You want explanations of why events matter

• You prefer in-depth analysis alongside the data

• You’re learning fundamentals and want guided commentary

Conclusion

Forex Factory remains one of the best free resources for understanding forex news events, reading economic data, and learning from other traders.

By mastering the economic calendar, following safe forum practices, and using tools like Trade Explorer, beginners can develop a more structured trading routine.