We know why you’re here – you’ve heard about forex trading, and you’re looking to get involved. Forex trading can be a great source of future income and it can even replace your real job in some cases. With so many articles and tips out there, you might be wondering what you need to get started. It can’t be as easy as opening a trading account and becoming a millionaire, right? If it were, then most people would be doing it. The good news is that most of the things you need can be acquired easily if they aren’t already in your possession. Below, we will detail the 4 things you absolutely need to become a forex trader.
The first thing you need is to be educated, everything else comes later. There is no reason to open a trading account if you aren’t prepared to start trading because some brokers will charge you inactivity fees for letting your investment sit there untouched. You need to start with basics, like terminology. Then you’ll have to understand the mechanics of trading, as in how to do things like place orders, set your stop loss, and so on. Reading about trading strategies, risk-management options, trading psychology, how the news affects trades, etc. are equally as important. This is something anyone can do for free, so long as you have a working internet connection.
There are even different mediums out there for learning, like articles, eBooks, videos, webinars, seminars, trading courses, and so on. If something just isn’t making much sense to you at first, don’t give up. Try researching that subject through a different medium, for example, if reading the material doesn’t make sense, try watching a video. Otherwise, you could try looking on a different website to see if another author can offer a clearer explanation. Anyone can get a trading education if they put their mind to it, but you’ll need to understand that this will take hard work and dedication. You can’t learn everything you’ll need to know in an hour, an evening or even a day. It can take weeks and months to take in everything you’ll need to know. As a forex trader, you should always pursue a better education and continue to improve your understanding.
Another must-have item every trader needs is an initial investment. The good news is that many brokerages will allow you to get started with as little as $5, or maybe around $100 or so. This shouldn’t be too difficult to come up with, so this still leaves the door open for everyone. However, you should note that you’ll probably be stuck with a Mini/Micro/Cent account or a regular Standard/Classic account if you’re making a smaller deposit. Most brokers market these accounts towards beginners and save better conditions for Premium, Platinum, Gold, VIP, or other similarly named accounts. Better accounts can ask for deposits in the thousands or even hundreds of thousands, which puts them out of reach for most traders. Fortunately, you can get started with as little as $5, just have realistic expectations. Don’t expect to make as much profit as someone that has invested $20,000 or more. You also need to be investing your disposable income, never try to invest the money you need to live off of. There’s nothing wrong with saving up over time if you’d prefer to enter the market with a larger investment.
A Device with Internet Connection
This one is somewhat obvious, but still worth noting. You need a smartphone, laptop/desktop, or a tablet/iPad with a working internet connection to be able to run the trading software. This won’t be too much of a problem for most traders – if you can read this article, then you probably have what you need. Of course, if you’re using someone else’s device or internet connection, you’ll need your own before you can get started. Try to be sure that your internet connection is strong as well, otherwise it could cause issues. Note that some providers will allow you to upgrade your package if it isn’t working fast enough.
The last thing you’ll need is a forex broker. There are hundreds and thousands of them online and readily available. You’ll need to do some shopping and comparing, however, as some of them might charge high fees or require a deposit that is larger than what you’re looking to invest. Choosing a good broker is essential for success, so be sure to put a lot of effort into this step. Some brokers are more interested in individuals with a lot of funds to invest, but you should be able to find a beginner-friendly broker easily.
If you want to become a forex trader, the good news is that the things you need are fairly accessible. A device with a working internet connection and a broker are easy to obtain, and you can get your education online for free if you put in the effort. Coming up with an initial investment might be more difficult, but you can still get started with around $5 and work your way up to investing larger amounts later on in your career. Becoming a successful forex trader is an obtainable goal for anyone that is determined and willing to put in the hard work.