Question......FOREX......Whats Forex.
Answer........Forex is an electronic marketplace not a physical Exchange where Currencies are traded between particpants consisting of Banks, Brokers, Market Makers, Dealers, Corporations, Individuals,
Central Banks..
Question......Can I as an individual / retailer participate or trade on the Forex market.
Answer........Yes you can quite easily in fact. All you need is a Computer. Open an account with
a Broker and depending on the Broker you may have to just sign in to use their Web Trading application
or download their application. They will require of you to Deposit money in your account, most require
a minimum of $500 but some will accept a lower amount.
Question......What knowledge do I need to Trade successfully.
Answer........You will need some basics in the structure or formation of the Forex Market and some
Technical Analysis and Fundamentals.
Question......Whats Technical Analysis.
Answer........Technical Analysis is the study of prices using a computer with the aid of the Brokers
Software to help you make a decision as to whether prices are going up, down or sideways. All you need
is a few indicators to help you make a decision and some defensive action such as using Stops to stop you out of the Market or in other words to Sell your position before you lose too much or to help you take Profits.
Question.....Where do I acquire this knowledge.
Answer.......Some Brokers offer free training and hand holding and their is lots of forums to help you acquire knowledge. Buy some books and scout the Internet. Also going forward I will write much more on Technical
Analysis and answer questions.
Question.....How do I pick a Broker
Answer......Make sure the Broker is registered with the NFA (National Futures Association) in the United States. Brokers must comply with NFA rules to set aside adequate funding to cover any unforseen financial Global calamity etc so funds that you deposit with a Broker is held seperately either in London, England or New York. I will write about various Brokers going forward re pros and cons. Recently in the United States as a result of the Frank/Dodd bill leverage maximum was adjusted downward from upwards of 400:1 , thats notation for 400 to 1 leverage to 50:1. This is the outcome in the States as a result of the financial crisis. so some brokers in order to maintain the high leverage say 200:1 they had to move their servers to places such as Cyprus or Malta. although they still maintain Institutional and still trade for large such accounts.
One Broker I approve of is Easy Forex who is registered with the NFA and its holding Bank is Barclays in london, England. They are in fact the only Broker that will allow you to open an account for $25 yes $25 and allow you to trade by depositing money with your charge card or debit card and allow you to trade within minutes which is unheard of. Normally you can only open an account by going through a rigorous process involving providing exact very enlarged driver license photo id plus other ID and a financial background summary and then you will have to pay for a money order to transfer money. Not so with Easy Forex they most certainly make it easy to open an account and trade although you should deposit $500 to start and trade very small with that money no more than 5% at a time. In addition they offer free Technical Analysis Training and lots of hand holding. If your really nice to them they may even adjust your Spread or Commission. If you wish to learn more click on their link below.
