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What is Forex Trading

How to get started in Currencies

History of Forex

A Primer On The Forex Market

Forex vs Futures

Forex Introduction

Forex vs Stocks

Getting Started in Forex
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What is a PIP?

Country Currency Codes

Reading Prices

What Pairs are Traded?

Forex Glossary

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Market Snapshot
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Fibonacci Numbers

Advanced Indicator Manual

Trading Systems which work

Demo Before You Dive In
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Risk Probability Calculator

Pivot Point Calculator

Economic Calendar

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Real-Time FX Charts

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Forex Movers & Shakers
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Keep An Eye On Momentum

Is Guessing a Strategy?

Trading On News Releases

The Memory Of Price

Trading Trend Or Range?

Pivot Strategies: A Handy Tool
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Getting Started in Forex
This article is reproduced with the permission of Investopedia.com.

The forex (FX) market has many similarities to the equity markets; however, there are some key differences. This article will show you those differences and help you get started in forex trading.

Choosing a Broker
There are many forex brokers to choose from, just as in any other market. Here are some things to look for:

Low Spreads - The spread, calculated in "pips", is the difference between the price at which a currency can be purchased and the price at which it can be sold at any given point in time. Forex brokers don't charge a commission, so this difference is how they make money. In comparing brokers, you will find that the difference in spreads in forex is as great as the difference in commissions in the stock arena.
Bottom line: Lower spreads save you money!

Quality Institution - Unlike equity brokers, forex brokers are usually tied to large banks or lending institutions because of the large amounts of capital required (leverage they need to provide). Also, forex brokers should be registered with the Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC). You can find this and other financial information and statistics about a forex brokerage on its website or on the website of its parent company.
Bottom line: Make sure your broker is backed by a reliable institution!

Extensive Tools and Research - Forex brokers offer many different trading platforms for their clients - just like brokers in other markets. These trading platforms often feature real-time charts, technical analysis tools, real-time news and data, and even support for trading systems. Before committing to any broker, be sure to request free trials to test different trading platforms. Brokers usually also provide technical and fundamental commentaries, economic calendars and other research.
Bottom line: Find a broker who will give you what you need to succeed!

Getting Started in Forex is continued on the next page, please click here.

Disclaimer: We know nothing about trading. That may be a little harsh - but the point being, Forex Knowledge and any of the information contained on this site should only be used as a guide to finding more information. Trading stocks, forex, futures or any form of trading for that matter is risky, and has a huge potential for loss. This web site, although the information is believed to be reliable, is only a starting place for your education, but many more resources should be consulted.