Making Money With Forex

So you've heard countless stories about how people are making millions each year with something called Forex. Now what is Forex exactly?

First off, Forex is made out of the words Foreign Exchange. It is also sometimes abbreviated to FX. Even though the name is quite complicated, Forex itself isn't - in short, it is just changing one currency to another

So now you know what Forex is and how successful it is, it may be time for YOU to start. But remember, Forex is revolved around risks - if you aren't willing to risk money, then its best to look for other methods of making money. Thousands of people may be making big money each day, but then again thousands of people are losing big money each day. In the world we live in today, you have to make risks to make money.

If you decide to carry on after what I just told you, great! You are one step ahead in making money. Now to get started you need a suitable broker. Read my next module on how to choose a suitable broker.

Unlike equity brokers, Forex brokers are usually tied to large banks or lending institutions because of the large amounts of capital required. Also, Forex brokers should be registered with the Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC). You can find this and other financial information and statistics about a Forex brokerage on its website or on the website of its parent company.

Many brokers offer two or more types of accounts. The smallest account is known as a mini account and requires you to trade with a minimum of, say, $250, offering a high amount of leverage. The standard account lets you trade at a variety of different leverages, but it requires a minimum initial capital of $2,000. Finally, premium accounts, which often require significant amounts of capital, let you use different amounts of leverage and often offer additional tools and services.

Summary: Make sure the broker you choose has the right leverage, tools, and services relative to your amount of capital.

There are literally hundreds of Forex companies providing trading signals, daily commentary and trading recommendations. While it may be useful to read some of these to get an outside opinion, it can just be information overload for newcomers to the Forex market, creating indecision and stress! Believe in your system and trade accordingly.