Getting Started with Forex Trading
To get started trading on the foreign exchange market, there are really only three basic things you'll need: investment capital, access to the market, and trading skills.
Success as a Forex trader does take devotion to learning the market,
but there is no shortage of material to help beginning Forex traders get off to a lucrative start. Learn the basics of how traders earn from this market and decide for yourself if foreign exchange trading is right for you.
Investment Capital
When it comes to investment capital, what's true in other markets applies to the Forex market, as well. Don't invest money you can't afford to lose. That said, it's not at all difficult to save up enough capital to get started trading. Most brokers offer two types of accounts: standard and mini. While opening a standard account usually takes an investment of at least $2,000, there are mini accounts that can be opened with as little as $250.
Of course, there are differences between these two types of accounts. Specifically, mini accounts usually offer more leverage, which is necessary to profit from a small investment, and they carry more risk.
Access to the Market
These days, almost all currency trading is done over the Internet. A software program known as a "trading platform" is used to execute the trades from the trader's computer. Many trading platforms have been created, so there's something available to fit any trader's individual needs and skill level.
Knowledge and a Trading System
Despite what some late-night infomercials claim, currency trading isn't an easy road to riches. If you aren't willing to invest time in learning how the foreign exchange market works, you may as well take your money to a casino. Even for those experienced in trading on equities and other markets, it takes some additional learning to invest profitably in the Forex market.
Fortunately, though, the foreign exchange market has been the subject of analysis for hundreds of years and a number of proven systems have already been created to help traders along. Rather than re-inventing the wheel, new-comers to the Forex market often do better by choosing a proven system that fits with their personal financial situation and goals.
Trading software may be either Web-based or client-side. With a Web-based trading platform, the trader logs into an account on the broker's Web site and performs all actions connected with the trade on that site. In contrast, a client-side trading platform is a software program that must be downloaded and installed on the trader's PC. This software connects with the broker's server to complete the trades.
