Just heard of Forex for the first time and probably asking “what do I need to start Forex? How much would be sufficient to start? Where do I start from……?” Well this is every beginner's heartache. Unfortunately important requirements are most times not included in the list of items required for Forex Trading in most answers to the questions above.
A lot of Forex Traders got very far in Forex without the required tools and they got to find out very late especially when series of losses began to occur. This is one of the reasons why beginners in Forex fail because they either ignored or never knew about certain vital tools or requirements they should have acquired when they started Forex.
We will state the required tools needed for Forex startup in order of importance and other relevant aspects. We will also explain the essence of these tools and why you would need them.
KEY
M = minimum; U = upwards; O = optional; N = novice; E = expert; I = intermediate; ** = must
M = minimum; U = upwards; O = optional; N = novice; E = expert; I = intermediate; ** = must
| S/N | ITEM | QTY | REMARKS |
|---|---|---|---|
| 1 | Fund** |
This is an investment business which involves buying and selling of currencies therefore funds are the most essential. However funds required for Forex goes beyond the trading funds. You need extra funds for purchasing other materials like the ones listed below. For guidelines on the right funds for opening an account see this topic:
http://fxtradecity.blogspot.com/2013/06/how-to-open-forex-live-account.html |
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| 2 | Computer ** (Laptop or desktop) laptop is preferable for mobility reasons. | 1(N,I) 2-3(I,E) |
A minimum system specification with 1.7GHz(U) processor speed, 2.0GB RAM(M), Win XP/Vista/7/8 (latest OS preferable), 15” screen (U) for better view, high Audio/VGA & Accelerator Cards, 3 USB Slots(M), 150GBM hard disk space. Forex requires very good computer processing power to handle multiple charts efficiently and other day-to-day tasks. Adequate hard disk space is essential not just for the trading platform but for storing trading video files, tutorials in audio and document formats, history files, and other Forex materials. Some incidence of slow trading platform performance, crashes & freezing is caused by low computer resources. Fairly used PCs should be avoided except it has been tested to be in very good state. A single computer is sufficient for Forex Trading. However multiple screens or PCs is recommended for those who wish to simultaneously monitor several platforms, use advanced charting tools, and view multiple accounts. |
| 3 | Internet ** | 2 (M,O) | This of course is an important requirement. A single internet connection might not be sufficient especially for regions with erratic or poor internet connectivity. Wireless internet connectivity is preferable due to mobility, and wide variety of options. Internet LANs comes with some disadvantages but speed is fairly better than wireless. Proxy configurations and firewalls are main issues with LANs in corporate network. Most Forex signal services and some EAs/Systems do not work efficiently with Proxy Connections on LAN. It’s better to subscribe for quarterly or yearly internet subscriptions. It’s a good planning method that saves subscription cost. |
| 4 | Forex Tools** | This goes further than the tools you’ll find in your regular MT4, MT5, or TradeStation trading platform. You will need the following categories of Forex tools: Analyzing Tools – required to analyze trade results & setups. e.g. spreadsheet apps. Charting Tools – needed specifically for drawing trade setups and analyzing pre and post trade events. Simulation Tools – very essential for designing trading strategies, perfecting trading strategies, analyzing past trades, test trading systems and strategy offers, e.t.c. e.g. Forex EA Analyzer, Strategy Tester, e.t.c. Utility Tools – as the name suggest you need them to ease your trading experience. E.g timers, world clock, e.t.c. Trading Tools – custom indicators, scripts, supplementary chart tools, EAs, news tickers, e.t.c. |
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| 5 | Smartphone(O) | 1-2(O) | If you are the business enthusiast or always on-the-go then a Smartphone will be a very good handy tool to monitor your trades. Most Forex services and platforms are supported on Smartphone’s especially android operated Smartphone. |
| 6 | Satellite/ Cable TV Network | 1 | This is a must for those who love the fundamental approach in trading Forex. It helps in keeping you updated with the latest economic events in the world that drives the Forex Market. There are mobile gadgets, which has Satellite TV, and streaming news capabilities. You can install satellite TV services on your computer or sign up for online Forex live news as an option. |
| 7 | Printer | 1 | Print monthly statements, Forex software guidelines, trade results, training materials, e.t.c. |
Some of the items listed above are optional but essential; others are more useful for advanced Forex traders.
Visit FXTradeCity’s Forex Resources Page for links on Item 4 and other items you might need.
Do not be so bothered if you are not be able to source for some of these items immediately but ensure you try your best to get some tools on item 4 (Forex Tools). Also don't compromise with item 1 (Funds) else you’ll find yourself gambling rather trading.
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