If you’re reading this, it’s safe to assume you have an interest in forex trading. Maybe you’ve heard about forex from that friend working in finance or maybe you have an interest in currency markets yourself. One thing is clear: you want to know more about it! But where do you start? There are so many brokers, types of trading software, trading accounts, …
It’s easy to lose track of everything when you’re just starting out, so I’d like to show you some good starting points to get you going quickly.
Choosing a broker can seem daunting. To help you out, I’ve written an article that shows what to look for when choosing a broker. I’ve been using Pepperstone as my forex broker and I’m very happy with them. If you’re looking for a reliable broker, they come highly recommended.
When you’ve chosen a broker, you should open a demo account with them. This allows you to get comfortable with the trading software and develop and test your own trading strategy. Only after you’ve consistently been trading profitably with a demo account for a couple of months, you should consider opening a live trading account!
There’s a lot of forex trading software around, and what you can use often depends on what your broker supports. One of the most used software packages is MetaTrader 4. It’s free, easy to use, has a thriving community and is well documented. It comes with an array of default indicators and supports running your own expert advisors. Usually, your broker will offer you a customised version of MetaTrader that makes it easier to connect to their servers.
If you’re planning to use something different, it’s worth checking they have the following features:
- open, close, pending orders
- trailing stops
- a default set of good technical indicators
- chart annotation tools
- execute automated trading software / algorithmic trading
A good alternative (albeit not free) is is NinjaTrader.
This might be the most important part of your whole trading setup. Without a sound trading strategy, you won’t be able to make profits consistently. Trading has little to do with luck and everything with having a “trading edge”; a slight advantage over the others. I’ve written how to create a forex trading plan and forex trading strategy that will allow you to start trading profitably.