I wanted to take the time to show you how to get started trading forex. This market can be tough and rewarding at the same time. I think the best way to describe it is that it has no mercy. If you know how to use it right – you’re fine, but if you don’t, well you can bet you’re going to have some trouble making money and even holding onto the money you already have.

Getting started will require a few things…

Broker

You’re going to need a broker because there needs to be someone moving around your money for you. You don’t have to get a broker that makes the decisions on your behalf, but just get one that has software for you to trade right from your computer.

There’s thousands of different brokers on the internet ready to compete for your business. That means there can be some great places to go, but also you have to watch out for scams. It’s very easy for a person to setup a website and look like a professional broker – they could very well be some teenager running this out of their basement.

I suggest to always do your homework and check out forex forums. These are communities where actual traders talk and you can see which brokers are good, bad and ugly.

Starting Cash

Getting started trading forex requires a little cash to start with, but the cool thing is that the broker allows you to leverage some of their money – usually 10x or 100x. That means if you put in a $100, they’ll let you trade up to $10,000.

Just a note, they won’t let you lose money. Once your losses approach your original deposit they’ll cut you off. If you’re using a high amount of money, losses can add up quickly.