What do you need to start trading Forex ?
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 is trustworthy, preferrably with a long standing reputation, 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:
• Automated Trading Strategies
- Invast will be offering the revolutionary ST24, (available in Q4 2013) offering risk management flexibility and a wide range of trading strategies to give you the freedom to choose as a trader.
• Subscription services to news services like Dow Jones newswires, 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), podcasts, on demand videos and live seminar sessions.
• A solid and reputable research team, providing market views and trading ideas. Invast Research Team consits of well know analysts like Peter Esho, Vito Henjoto and Ashley Jessen.
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 RAM 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. When organising multiple monitors to be used in trading, 2 is a good amount to start with.
Keep in mind though that multiple monitors is not a necessity and doesn’t make anyone a better trader.
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 ($100,000 positions or higher per trade) ranges from $10,000 – $50,000; while traders trading mini lots (1 mini = $10,000) normally start with $3000 – $10,000.