Anyone can trade Forex and it does not matter if they have one million dollars to get started or just one dollar. Brokers now allow micro accounts, which are accounts specifically designed for the micro investor who does not have the millions to trade.
To trade Forex for the first time you need:
1. A top class broker.
There are hundreds of Forex brokers and the smallest ones try to offer almost non-existent spreads and bonus to the new traders. However, you are advised to trade only with regulated providers who have been in business for years. Please search for some broker reviews and try their demos for a few days to see how they perform in terms of software, execution time and technical support.
2. Some capital.
You need money to trade Forex. There are brokers that allow micro accounts with as little as $1 but you should never trade with less than $100 because with a $1 account it takes just a few pips to either double the capital or to lose it all.
3. Computer and internet access.
Brokers allow orders only using computers. The days of trading using the phone are gone on the Forex market, especially if you have a micro account. Computer trading is faster because it usually takes less than a second to execute the order.
4. Software.
The broker will give you the software to trade. You may trade using the browser via web trading or you may download the software. Both systems have their advantages. With web trading you can trade from anywhere as long as the computer or mobile phone has internet access. However it is not possible to use robots or any external indicators. On the other hand you may download software but in that case every computer you will use to trade must have that software installed. Most brokers offer the Meta Trader 4, the most popular trading software.
5. A strategy.
Trading the Forex market is not like going to a casino and roll the dice to earn money. Of course that you can trade that way but chances are you will lose. With a strategy you analyze the market to make a trading decision instead of buying and selling randomly. Which trading strategy is the best? That's the million dollar question every trader is trying to figure out. Some traders use robots, others use indicators and some of them the news and events. Try to see which strategy works the best for you.
Forex is the biggest financial market that moves trillions of dollars every single day. It is dozens of times bigger than the stock market and the trading volume is so big that no person, institution or government has enough power to affects its prices, only the entire market itself has enough capital and power to make the price go up or down.
