For those looking to make money, forex can seem an unlikely helpmate. Widely misunderstood, its high risks and volatile markets are often cited as reasons to avoid it at all costs.
Yet for those willing to do their research and devote some time to it, the foreign exchange can actually prove a fantastic source of income. Offering dazzling opportunities to turn a profit, its diversity and complexity means that it can cater to all sorts of prospective traders, irrespective of their level of experience, approach to risk, or budget.
The first step for any aspiring broker is to choose a suitable currency pair. There are hundreds of combinations to choose from, ranging from the popular to the exotic, and each of them will suit different traders to varying degrees. Although it is impossible to provide aspiring traders with a set formula for success, a good place to start is often with one or two of the ‘four majors’: the euro/US dollar, pound/US dollar, Swiss franc/US dollar, and Japanese yen/US dollar pairings. With a wealth of information available on them, they’re easy to research, and usually prove to be an ideal choice for those looking to learn the ropes.
Your next step should be to find a broker that offers your currency combinations. You’ll find that there are three generic types of service available: execution-only, advisory, and discretionary. These options provide varying levels of support to traders, and this means that some will be better suited to novices than others. As a rule, discretionary brokers, although expensive, are ideal for those short on time or experience. However, advisory brokers can also be a good option for those with a limited budget.
Once you’ve settled on a broker, it’s time to choose a trading platform. Most brokerage firms will offer multiple options to pick from, and it’s imperative that you find one that fits you down to a tee. As the foreign exchange has no central trading arena, this technology will act as your conduit to the markets, so it absolutely must be easy to use, provide the tools that you need, and supply you with the type of data that you require. Most brokers will offer demo accounts for you to trial these options, so take advantage of this to find the perfect fit for you.
Follow these simple steps and watch those single figures soar: start trading today with a broker like FxPro.