Starting out to trade Forex can be a challenging task. However, there are ways to make it less difficult and painful for you. One of the first steps in trading Forex is signing up with a broker. Once you make an investment decision, you need to actually place the buy or sell order with a broker who handles the currency exchange for you. Following are 3 things to consider when selecting a Forex broker:
1. Learning Period - If you are just starting out to trade Forex, you should be aware that there is a definite learning curve involved. Regardless of whether you are planning to do all the research, calculations and decision-making on your own or use automatic Forex signals, you will need a period of time to learn how it works and get yourself into an investing routine. To avoid losing a lot of money during this learning period, you should look for a broker who allows you to do all the steps involved in investing - except putting up your own money. Look for a broker whose account includes a "Forex game" or trial period, and you'll be able to go through the motions without risking your money. A good broker allows you an unlimited time to learn and feel comfortable with Forex trading before you start putting your own money on the line.
2. Customer Support - As a new trader, you can expect to have a number of questions that will not be fully answered in whatever training materials you use to learn how to trade Forex. This is where the broker should come in. A good broker will have not only a help desk, but also live telephone help, live chat, and email help. In an ideal situation, you should have a specific person who can get to know you and provide you with more personalized guidance. You also need to determine the hours and days that the live phone and chat services are functioning - and make sure that they match your personal availability to learn and trade Forex. Finally, a broker who has a "community" of traders who can communicate and share ideas via a forum is another plus.
3. Clear Instructions - I know that this seems obvious, but I can't tell you how many products I have tossed away because I couldn't understand the instructions. Instructions need to be written for newbie traders at the newbie level. If you follow #1 above and hook up with a broker that allows you to learn the ropes by playing a Forex trading game, read the training materials that they provide you with, and then contact customer support at different levels, you should get a good idea of how easy or difficult it is to learn how to trade Forex. You'll also learn how much support and guidance you'll get from this specific broker.
Forex trading can be very rewarding and provide you with a second (or eventually first) income. But take a serious look at potential brokers at the very start. The right broker can make or break your experience in learning to trade Forex. Check them out, choose wisely and make lots of money.
