Below is the list of what I consider to be the most important and necessary tools in currency exchange:
Take your time in choosing the platform because it will be your trading environment. Make sure to go for secure and regulated forex broker with protection from hack attacks and with security transactions.
Go over the platform features with demo account. Try out smaller amounts and check for slippage, real-time quotes, charting capabilities, daily analysis, one click execution and hidden commission fees.
Do a background check on the broker of your choice – read reviews, participate in forum discussions, find whether a physical address is listed on the broker’s website, try getting in touch with the representatives with all means of communication (phone, email, online chat).
Don’t you want to test drive a new car before you buy it? Why should forex be any different? Get a glance of what lays ahead.
Some traders consider demo account a waste of time. I think the opposite. A good demo account which exactly simulates live account with real live market rates is very useful for beginner. You can not only practice your strategies, but also become familiar with the platform features and capabilities.
To make correct and effective decisions in forex, you need a well-presented graphical display of currency pair behavior and emerging trends. In order to see and analyze that you need top-notch charting software. Go over the charting functions and options in the platform of your choice and see if it is satisfactory.
Many forex brokers provide daily fundamental and technical analysis of the forex market. Not all of them are good, though. Choose a broker that makes useful daily analysis which is beneficial for your trading experience. Use the expert knowledge to make profitable decisions.
In order to be on top of things, you have to socialize with others. Whether you join forums or trading social networks, you will definitely benefit from communication with other traders. Talking to others allows you to review and rate services, confirm your ideas and predictions, discuss trading strategies and seek help from people with the same set of interests.
The agenda of forex is not only to make money, but to keep your trading account safe. Losing is a common practice, however there are ways to lose. One way is to do it recklessly and clear up your trading account within seconds. Other is to exercise discipline and risk management techniques in order to protect your capital and minimize the negative outcome.
No matter which tools and features attract you, make sure that you have the above checklist under your belt. Create a safe and enjoyable trading environment. With consistency and trading plan, your success is in your hands.