All Day, All Night Just Like The Market

The FOREX market is open 24 hours a day and so are online FOREX brokers. Investors wanting to trade as much as possible will love online trading. It is truly the best way to go to maximize access to the FOREX market.

Online Resources

Considering that online FOREX trading isn't even 20 years old, there is a wealth of resources online for investors. Blogs, product reviews, trading services and anything related to online FOREX trading can be found by typing "FOREX trading" into any search engine. New traders should take advantage of this and do some research before jumping in with real money.

Demo Trading

Unlike stocks or other assets, most online FOREX brokers give investors the opportunity to trade in a practice account with fake money for a limited period of time. The only thing that is fake is the money. The quotes and the charts are real, giving this simulated environment a real-world feel that cannot be beaten. Newcomers to the world of online FOREX trading should take advantage of this outlet.

Setting Up An Account

As the online FOREX industry has exploded, so has the number of online brokerages. The most important thing to remember when choosing a broker is finding a regulated broker. In the United States, investors should find brokers registered with the Commodities Trading Commission.

Understand What You're Seeing

Upwards of 95 percent of online FOREX traders will trade currencies in pairs, meaning investors will buy one currency against another. On his screen, the investor would see a pair such as this: EUR/USD. This is the Euro/U.S. dollar pair. By going long in this pair, he wants the Euro to rise against the dollar. By selling short the pair, he would want the dollar to rise. When going long, the first currency in the pair is the one the investors always wants to go up. When selling short, the second currency in the pair is the one he wants to see rise.

How to Make FOREX Easy

1. Step 1

   Spend some time observing currency exchange rate fluctuations. Fox Business Network and the Wall Street Journal are two good sources for an overview of current news that may affect currency rates. Online, XE (http://www.xe.com/ict/) gives both current and historical exchange rates for a variety of global currencies.

2. Step 2

   Set up an account with an online Forex trading service, such as GFT Forex (http://www.gftforex.com/). Start with a practice account so that you do not lose your initial investment. Spend at least a month doing practice trades. The idea is to collect data and track trends.

3. Step 3

   Switch your practice account to a paid account so you can begin trading. You will need to amass a minimum of $250 to get started, but $2500 is recommended in order to make a profit. It is a good idea to package your account along with access to online tools that help you decide on the best trades.

How to Find A Forex Broker

1. Step 1

   If you are completely new to investing, the first place to go is the National Futures Association (NFA) website. This association maintains high standards for its voluntary members, and is one of the best resources for brokerage firms that are involved in currency trading.

2. Step 2

   If you already have a broker that is handling your investments for stocks and mutual funds but doesn't handle Forex trading, ask them for a referral. Be sure to clarify whether or not they know of the person or firm's reputation.
   
   You can also use NFA's Background Affiliation Status Information Center (BASIC) to do a search on any of the firm names that are referred to you.

3. Step 3

   Once you've been referred a couple of brokers or brokerage firms, call and talk to a customer service representative or in-house broker. If you don't get a good vibe, or feel that they're not going to be able to give you the kind of assistance you think you'll need, move on.