By Vito Henjoto, Technical Analyst, GFT
To start trading forex, the first thing you need is access to the market. Choosing the right broker to trade with is an important step in the journey. You need to choose a broker that’s trustworthy, has great customer service, significant market experience, and a platform to suit your needs.
Brokers not only provide access to the market with trading platforms and price feeds, but some brokers offer added benefits such as:
• Proprietary tools to help you navigate the market such as Autochartist and Foresight A.I.
• Subscription services to Reuters/ Dow Jones News Wires/ CNBC TV direct to the trading platform; providing you with the latest breaking news in the market.
• Multiple platforms to trade (Mobile, WEB and stand alone computer) providing flexibility so you can access the market wherever you are.
• Training/Education on trading the forex market. This is normally delivered in the form of Webinars (Online Seminars) and Live Market Analysis.
• Research Analysis Team providing market insights. A good research department can provide a second opinion to your own market analysis.
Some brokers also offer trader support services for less experienced traders.
Once you have chosen a broker, you need to decide how you will access the market.
Traditionally a PC running Windows is required, but with the advent of mobile technology and the introduction of Tablet computing almost all brokers now provide a mobile trading platform to give you the option of accessing your trading wherever you are.
However, to make use of advanced charting, a PC is still required. Any computer from the last five years should be capable of running a trading platform effectively; a minimum of 2GB of memory for running multiple charts is recommended. If you wish to do so, running a multi-monitor setup generally requires a higher spec computer to display multiple charts.
It’s essential to have a stable and strong connection to the server so that your trading is not disrupted by service and coverage issues; therefore an ADSL/Cable Internet connection is recommended to maintain a stable connection to the server.
In terms of the level of capital you use, all traders are different. As such, depending on your purpose of trading or trading style, the capital requirement will vary. The higher the capital the more room you have to withstand market movements. “Do not risk money you cannot afford to lose” is the general rule.
The average capital for traders with the intention of trading standard lots ranges from $10,000 – $50,000; while traders trading mini lots normally start with $3000 – $10,000.