How to Choose a Forex Broker

One of the biggest steps for someone who is just getting started in forex is picking a broker. As i stated in Forex Trading Systems a good broker can make all the difference between making money and losing money.

Before we even get into picking a broker i need to explain the purpose of demo accounts. Demo accounts are a livesaver, when it comes to picking a forex broker. Demo accounts are basically the equivalent of a free trail. They let you try out the companies system with fake money, to see if you like how it works. Not only is this a great tool to use before commiting to a broker, it also a great learning tool. Most demo accounts last 30 days or more, this gives the begginer time to learn the market, and how things work. Although you won't make any money this can gurantee that when you invest your own hard earned cash, you will see profits.

This is a great feature and i would strongly reccomend it before commiting to a forex broker. After you have demoed the brokers account and like the way it works, its time to start investing real money! If you follwed the tips above you should have no problem pulling in some cash within your first month!

Forex Trading Systems

There are many different types of forex systems for you to start trading forex as mentioned in the earlier post, but picking the right one for you is crucial to making any amount with forex trading. The first approach is to set up an account with a broker and manage it manually. This is reccommended for those just geeting started in forex. By choosing this route you will learn a great amount about how the forex market works and all the different aspects of it. The second approach is to use an automated forex robot to automatically make trades for you. Although a robot can drastically increase your profits there are many more risk involved than managing your account mannually. This is why forex robots are only reccommened for more experienced forex traders who know the market really well.

Foreign Exchange AKA- FOREX

Foreign Exchange trading also know as Forex trading can be a highly lucrative business. It consist of purchasing an amount of one currency by paying a certain amount of another currency. Forex has become increasingly popular because of the 24 hour market unlike the stock market which opens and closes every day. Forex trading also involves leverage which makes it possible to earn a large profit with only a very small investment. The United State;s dollar and Europe's Euro are the two most common types of currency traded on the foreign exchange market. Just to show you how lucrative this market really is here is the markets worth as of last year $3.98 trillion