The Forex market used to be the realm of governments, banks, financial institutions and very rich people. That was not so long ago either. Fifteen years ago, perhaps, maybe even less. The development that altered all that is the Internet. These days, the Forex market is played by small companies and even ordinary people as well as the big players of yesteryear.
Whether or not it is a level playing field for the big and the small, you will have to decide for yourself, because so much shame has come to light recently about issues in other financial markets. However, the Forex is so big that it is hard to think that it can be manipulated. (Although George Soros is blamed for a run on the GBP in the early nineties).
It is probable that the big players have more access to intelligence that the rest of us. Particularly governments as they introduce the policies that affect the way a currency moves. Information is the key to profitable Forex trading. Therefore, you need to know the terminology of the Forex market; how to use the financial instruments that your broker makes available to you and you need to be up-to-date on the information affecting your target currencies.
Therefore, it stands to reason that you should decide to open an account with a Forex broker that offers the most advanced trading platform, supplies the best training and delivers the best, up-to-date news and market analysis.
The best way of selecting an online Forex trading system is to Google “online Forex trading system” and pick six of the most impressive to you and save them into a folder in your ‘Favourites’ list. If you are new to Forex trading, you should read the firms’ training literature. This will give you an feeling of how much the broker cares. Try putting some of the principles that you learn into practice in a ‘practice account’. The practice account is without charge, but sometimes you may only use a practice account for a month or so.
You will discover that some online Forex trading systems are simpler to use than others. One online Forex trading system might suit you but not suit me, it is a personal preference. Some online Forex trading systems will have all the bells and whistles, but you may prefer a simpler system. For example, if your computer is slow or your Internet connection is slow, you may want to be able to turn off any features that you do not need in order to speed your system up.
Another aspect that you should pay close attention to when choosing an online Forex trading system, is the system’s functionality for technical analysis. You will need free access to the historical data of the currencies that you are interested in. These data can then be interpreted by graphs, which may be able to help you decide which way a particular currency pair may go. Breaking news is also very important and your broker should provide you with all the most recent news stories ‘hot off the wire’.
Owen Jones, the author of this piece, writes on many topics, but is currently involved with a currency trading tutorial. If you are interested in dealing with an FX Trading Account, please go to our web site.