International Trade

Before you start forex trading, the first things you need are a very good computer systems, high speed internet connection, and the amount of money that you are ready to invest in forex trading. After that you will need a forex broker.

Who is a Forex Broker? A forex broker is an individual or corporate organization that buys and sells orders according to the trader's decisions or instructions. Brokers earn money by charging commission or fee for their services. When you go online to search for a broker, you will be surprised by the number of brokers the search engine will come up with. You need to take your time to go through the individual broker's site. Things to look for include: the minimum amount needed as deposit, what are the spread between buying and selling major currencies? What type of trading platform the broker is using.

One important question to ask is if the broker is regulated. In order words is the broker registered with any Forex Trading regulatory agencies. In most cases you can find these information on their website.

Regulatory agencies: We have different types of regulatory agencies. In the United States, brokers should register as Future Commission merchant with the commodities Futures Trading Commission. The commission is there to protect consumers against unwholesome practices like fraud, price manipulation and bad trade practices. Look out for good ones. Some may have been blacklisted by the commission.

Other area to look into as part of your learning to trade forex is the form of payment for your deposit to the broker. Some brokers will only take direct deposit by bank wire or transfer; others may take e-currencies like liberty reserve, E-gold, E-bullion, Paypal or even credit card. One thing is certain however, in most cases, if there is need for you to withdraw your money or your profit, the broker will only pay you through the medium you initially deposited your money. For example if you sent your money by bank wire, money will be sent back to you by bank wire only.

Timothy Alebiosu teaches Computer Studies and ICT at a Technical college, He is also involved in seminars and workshops on Forex Trading. He is the author of a book "Learning to Use the Internet". You can visit his website http://www.forexpodium.com