What Do I Need To Start Online Foreign currency exchange trading?
Online foreign exchange (forex) trading is rapidly becoming one of the most popular ways for individual investors to diversify out of traditional investments. It's fast, convenient and easy to learn. If you want to start you online foreign exchange trading career today, all you need to is:
It goes without saying that if you want to start online foreign currency exchange trading then you are going to need to have access to a computer and the internet. The type of online forex trader you want to be, ranging from a day trader to a long-term investor, will dictate the amount of time you need to have access to a computer and the internet. Ordinarily online forex investors use either their home computers or computers in their work-place to execute their daily online forex transactions.
The type of computer you need to use will vary depending on the software package you want to run. What you will need, however, is broadband internet access. You should note that some forex brokers will not allow you to open an account or execute an online forex trade with them if you are still using a dial-up internet connection, so check this when you set-up your account with your forex broker.
The forex software package you decide to use in your foreign currency exchange trading strategy is going to have a large impact on the type of computer you need to use and the amount of time you need to spend online. Essentially foreign currency exchange trading programs come in two basic packages, both of which have their pros and cons.
1. Internet-based forex software package: the first type of forex software you can use is an internet-based forex software package. With the internet-based forex software package you basically subscribe to an internet website, set-up an account, and then use the software. The pro to this type of account is that you can access the software from any computer, anywhere in the world. The downside to this type of software program is that you need to be online to use it – which can result in costly bills.
2. Computer download forex software package; the second type of forex software program you can use is a download onto your computer. Normally this will be in the form of a CD, which you install on you computer. The upside to this type of program is that you do not need to spend long periods of time online working on your online foreign currency exchange trading strategy. The downside to this program is two-fold. On the one hand, you may be missing out on important updates to the software, something that won't happen if you are using an internet based forex software program. On the other hand, using a download forex software program restricts you to using the software on one computer, so unless you are using a lap-top to run the software it is difficult to move about and still use the software to help you strategies your online foreign currency exchange trading.
That said, in order to effect a forex transaction you do not need a software program. You do, however, need to have access to the hardware. So given the choice, having access to the first is better than having access to the second! Obviously, however, in an ideal world, you would want to have access to both.