Getting Started With Forex Trading
Had enough of the stock exchange? Tired of options? Perhaps then the foreign currency exchange market, or Forex, is something you should consider. The Forex market has exploded in popularity recently and is by far the largest trading market in the world. How, then do you get started in this potentially lucrative arena?
The first thing you need to do is get some education and knowledge on how the Forex market works. There are several good books available on the subject, while the Internet also has many good resources available for the novice Forex investor. Once you feel that you are ready to begin trading Forex you need to find a broker to handle your transactions. Fortunately, most brokers on the Internet allow you to practice trading with play money so that you can experience what it is like to trade Forex without risking any real money. They usually also provide some instructional resources and software tools to help make your trading easier. You should be sure to check that your chosen broker has registered with the Commodity Futures Trading Commission.
Getting your account ready is similar to registering with your bank. You will need to fill out a form of your details and provide the broker with some identification to prevent fraud. The broker may also want to draw up a margin agreement. This allows them to step in if the think you are making a trade that is too risky. Then, depending on what your starting capital is you will choose an account size to open with. These can range from anything from around 0 for a mini account to a few thousand for a larger account.
Once your chosen account is funded you are more or less ready to begin trading. Trading is commission free but you should still be careful never to risk more than you can afford to lose by always using stop-losses to limit damages should things go wrong.
About the Author: Andrew McNaught is a successful webmaster and publisher of Forex World Online where you can find out more about getting started with Forex trading.