Investing in Forex trading through any of the multitude of online brokers available without exercising proper diligence regarding which broker to use is a rapid path to Forex suicide.
Other decisions involved in starting an online Forex trading business are fairly straightforward. All trading platforms (software) are pretty decent, and also keep getting better. Some are so user-friendly that they almost seem to make sending e-mail difficult by comparison.
Any computer made in the last five years is going to be adequate, and any high-speed Internet connection that is reliable and offers download speeds of 1 MB per second or better will suffice.
The only other variable to consider besides you, the trader, and it's the most critical variable to get right, is the broker.
There are literally thousands of brokers available offering varied services to the retail Forex trader. Finding the one, two or three brokers to provide what you need and want out of a broker is going to require a significant effort on the part of the trader.
Visiting broker web pages can be unproductive. They all look good on the Internet, offer the best service at the lowest prices, and all claim the they can make more money for you than any other.
Sifting through all the claims, deciding which are legitimate and which are marketing hype is difficult for even an experienced trader looking for a new broker for some reason.
There are objective Forex broker review sites that are worthwhile. Keep in mind that almost anyone can voice their opinion on these. Some comments will obviously be a case of sour grapes. These types of comments are typically made by new traders that held unrealistic expectations of overnight wealth and became bitter when reality got in the way. Others will be from shills who want to brag about a few lucky trades. Look for the middle ground. Reviews that are neither a case of anger being vented our sound more like marketing pitches for a particular broker will allow you to patch together some idea of how broker is generally perceived by traders.
Also, plan on spending some time evaluating your own needs. Different brokers offer different levels of service and many brokers offer many levels of service.
If you are new to Forex, you might consider paying a little more for the services of a broker that caters to new traders. These services will typically provide a lot of training and practice and even an opportunity to work with an experienced trader one-on-one. They also might trade for you, providing the opportunity for you to see what leads up to the decision to enter a trade, what is required to maintain a trade, and what prompts the decision to terminate a trade.
If, on the other hand, you have executed hundreds or even thousands of trades, and lived to tell about it, your needs from a broker could be limited to finding the tightest spread combined with the best analytical tools and advice.
You may be in between these two extremes: you may have been trading for a while, you appreciate the reality of the Forex market place and make your own trading decisions, but still want to advance your knowledge and skills.
In the final analysis, there are many different types of traders, strategies and tactics involved in trading Forex.
The choice of the proper broker is vital to successful Forex trading because a good broker, one that you don't have to chase for service, but also doesn't deluge you with communication encouraging you to take trades in which you have no interest, allows you to focus on what the market is doing without distracting your attention at the most inopportune moment.