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Forex - How To Get Started?

 

When it comes to begin with FOREX trading, many elements should be considered.    
  
The first thing that needs to be done is to  look for and find a good broker   to help you with your trading choices.    

When you choose your broker you will need to bear in mind that, like anywhere, there are many to choose from. Below are a few points you will need to look for in making your choice:

Low Spreads
The spread, calculated in pips, is the dissimilarity between the price at which a currency can be purchased and the price at which it can be sold at any point in time. FOREX brokers never charge commission, so this is the difference that will help them to earn money.

When you compare brokers, you will find that with FOREX, the difference in spreads is as large as the difference in commissions in the stock ground. This means that lower spreads will help you save money and. Therefore, try to look for a broker that offers low spreads.

The Institution’s Quality
Contrasting with equity brokers, FOREX brokers are usually connected with large banks and lending institutions because of the large amounts of capital that are required. Further, FOREX brokers should be enrolled with the Futures Commission Merchant (FCM) and also moderated by the Commodity Futures Trading Commission (CFTC).

You can find this as well as other financial information and statistics about FOREX brokerage on the company’s website or on the parent company’s website. You must ensure that your broker is connected with a reliable institution.

General Tools and Research
Just like brokers in other markets do, FOREX brokers offer many different trading platforms to their clients. These various trading platforms often represent real-time charts, technical analysis tools, real-time news and data, and even bearings for the many trading systems.

Before you decide on any specific broker, you must make sure to ask for free trials so that you can experiment their different trading platforms. Brokers generally provide technical as well as fundamental comments, economic calendars, and other research as a way to assist you efficiently. Essentially, you must get a broker who will give you all you need for being successful.

Various Leverage Options
A key necessity in FOREX trading is leverage. This is because the price deviations (or the sources of profit) are just put at mere fractions of a cent. Leverage, which is articulated as a ratio between total capitals available to actual capital, which is the right amount of money a broker will give or lend you for trading.

For example, a ratio of 100:1 means that your broker should lend you $100 for every $1 of real capital. Many brokerage companies will offer you as much as a 250:1 ratio.

Certainly, you need to bear in mind that lower leverage also signifies lower risk of margin calls, but it also means that you’ll get a lower bang for your money and conversely. Altogether, if you are financially limited, you must ensure that your broker will offer you a high leverage.

If capital is no problem to you, you can rest assured and be satisfied with any broker that has a wide variety of leverage options. Many options can let you change the amount of risk you want to take. As an example, less leverage (less risk) could be better if you are working with currency pairs which are highly volatile (exotic).

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