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How to Start Trading Forex in Three Simple Steps

Investing can be an ideal choice for those looking to bolster their income. The foreign exchange, in particular, is a highly popular option amongst those aiming to supplement their current wealth. It works very well around an existing job, thanks to its accessibility, flexible trading hours, and the varying degrees of involvement and experience that it requires.

However, forex success does not come easily. The discipline is highly complicated, an art form that takes a long while to master. To get started on the right foot, it’s very important to set in place three key building blocks…

Step One: Choose a Currency Pair

 The first step on the road to forex success is choosing the right currency combination/s. Different pairings will offer various levels of risk and reward, and will complement different personalities, tactics and goals to varying degrees. It’s incredibly important to look at as many combinations as you can before making a final decision, evaluating each of them in terms of how well they would suit your stratagem and risk threshold. Although the four majors offer an appropriate starting point for most people, it’s still a good idea to do your research before making your final decision.

Step Two: Choose a Broker

 In the world of forex trading, your broker will be your confidant, advisor, teacher, mentor and support network, but the exact service they offer will be heavily dependent on the package that you choose. For the novice, it’s a good idea to look for a firm that will either invest on your behalf (if you have the funds to cover their fees), or one that can advise you on every move that you make. With the right support network and teaching, success is just around the corner.

Step Three: Choose a Trading Platform

 The foreign exchange has no central marketplace, and this means that the trading platform you select will be your conduit to the markets. Most brokerage firms will offer more than one trading platform, and it’s important to assess these in order to decide which best suits your needs. Enterprises like Oanda will give you the opportunity to use a demo account to make this decision, and it’s a very good idea to take advantage of this facility. Assess your various options from every angle, focusing in particular on their aesthetics, ease of use, and the tools that will be at your disposal. If you’re unhappy with any aspect of the platform, then look elsewhere – with so many brokers to choose from, you need never settle for second best.

Follow these top tips today to set yourself on the path to forex success.