What do you need to start forex trading?

The forex market is the largest financial market in the world, with over $4 trillion traded every day. Many private investors trade forex (FX) daily and there are many more people who are looking to enter the market for the first time. This article is designed to help all of those who are new to forex by looking at some of the things that may be worth considering before making your first trade.

Understanding of the markets

It is important to have a good understanding of the markets before risking any potential investment. As every forex trade takes place through a currency pair, it should be remembered that you will need to understand what factors could potentially affect both currencies in the pair, not just one. In addition, what actually impacts a currency can vary from an announcement made by the currency’s government, to its economic performance. International factors, such as a share a trade pact or even natural disasters could also potentially affect the strength of a currency.

A secure connection

In order to get an accurate reading of the market and the most up-to-date prices, you will need a secure connection to a trading platform. Having a modern PC or laptop with the latest software updates will no doubt help you with this, but the kind of trading platform you use and the provider it comes from could also be a factor. A platform that has been around for a number of years could be more reliable than one that has recently been released by a new provider. You will also want to consider whether you would like to access a mobile trading platform and whether a provider offers one.

A trusted forex provider

First and foremost, your prospective provider will need to provide you with a safe and secure service. A provider with years of experience and a verifiable reputation may be more likely to provide you with this. Furthermore, you will need to discover whether they offer forex trading on the currency pairs that you want, if their pricing is competitive and if they offer any other resources that you may find beneficial.

IG Markets offer you a free demo of their trading platform, giving you a no risk way of seeing if it is suitable for you. IG Markets has been a forex provider for many years and offer twice daily market analysis and free educational content to help make you a better trader. They supply a wide range of FX markets to trade from, with spreads starting at just 0.8 pips.

This article is provided for information purposes and should not be regarded as financial product advice. Please refer to the risk disclosure statement from IG Markets. CFD trading can result in losses that exceed your initial deposit. You should consider the information in light of your specific objectives, financial situation or needs before making any trading or investment decision.

Author's Bio: 

James Paxton is a financial writer who specialises in writing about the forex markets. He has years of experience with writing about currency trading, as well as other financial markets, such as equities, stocks, CFD trading, bonds, commodities and options.