According to statistics from Bank for International Settlement, the daily Forex Trading turnover rate was $5 Trillion by the end of the 2023 Financial Year. It is no surprise that Forex has the largest revenue-generating investments in the world currency market by https://fxcm-markets.com.
Forex is a lucrative business because of its high turnover rate, despite the risks. To trade the Forex market effectively, you need good trading skills, experience and effective tools.
The table below lists the essential items that an investor must acquire to begin trading Forex.
M = minimum; U = upwards; O = optional; N = novice; E = expert; I = intermediate; ** = must
The most important thing is to have the money. The funds needed for Forex go beyond trading. Additional funds are needed to purchase other items, such as those listed below.
2. Computer ** Laptop or desktop?
Minimum system specifications: 1.7GHz ( and), 2.0GB ( and), Windows XP/7/8 (latest version OS preferred), 15-inch screen ( or), high audio/VGA/Accelerator cards, 3 USB slots ( m), and 150GB of hard drive space.
Forex is a very complex trading system that requires a powerful computer to run multiple charts and perform other daily tasks. Not only is it important to have enough space on your hard drive for the Forex trading platform, but also for video tutorials, audio files and documents, historical files and other Forex material. Low computer resources can cause platform freezing, platform crashes and slow trading performance.
Forex Trading can be done with a single PC. Multiple screens and PCs are recommended for traders who want to monitor multiple platforms simultaneously, utilize advanced charting tools and manage multiple accounts.
3. Internet **
It is important to have the right materials when trading Forex online. One internet connection may not suffice, especially in regions where internet access is erratic. Due to its mobility and variety, wireless internet is preferred.
Internet LANs have some drawbacks, but they are faster than wireless connections. Firewalls and proxy configurations are key problems with corporate LANs. Proxy Connections are not compatible with most Forex Signal Services and EAs.
4. Forex Trading Tool **
Find below categories of Forex trading tools: Below are categories of Forex Trading Tools:
Forex Analyzing Tool – Required to analyse trade results and setups. e.g. spreadsheet apps.
Forex Charting Tool – Needed specifically to draw trade setups, and analyze pre and post trading events.
Forex simulation tools are essential to designing and perfecting strategies for trading, analysing past trades, testing trading systems, strategy offers, etc. e.g. Forex EA Analyzer, Strategy Tester, e.t.c.
Forex Utility Tools are tools that you can use to make your trading easier. Timers, clocks around the world, etc.
Forex Trading Tools: Custom indicators, scripts and supplementary charting tools. EAs. News tickers.