Amazingly, only a couple of years ago trading forex or stocks and shares were purely offline transactions. Finding a broker was often as simple as reading advertisements in the Financial Times, more hints!
In order to purchase shares, one would first have to locate and contact a stock broker. Or even a bank. They then had to start moving the money in and out to pay for the shares. And finally move it back when they sold them. How quickly those ancient times are becoming distant.
Online trading of stocks, currency and shares (forex/fx) has exploded.
It was thrilling to trade shares until stock market prices stagnated, and movement in my portfolios became minimal. What I really needed was something more adventurous, riskier and that could give me that adrenalin rush after a win.
I began to pay more attention to spread betting or forex/fx/foreign trade, which is also known as foreign exchange. Now the hunt for forex really starts. Initial stages in a successful forex hunt can be simple, especially if you are an experienced investor.
There are many factors to consider when looking for forex broker. You should also consider the firms themselves. Just like with an online investment of any kind, do your research, read reviews about the forex brokers and scam warnings.
After you’ve found the right forex brokerage for you, it is time to select which broker you want to work with. The factors you should consider are whether or not they are regulated. As long as you are doing your homework, it is hard to go wrong. The majority of American/USA traders will choose to trade offshore because they believe it’s a more efficient way to maximize their trading profits.
The next step is to figure out how to finance your foreign exchange trades. It is important to choose the payment processor that works for you as part of your forex hunt. Keep in mind you may sometimes be able move thousands of Euros/Dollars! MoneyBookers (or PayPal) or MoneyBookers can be used by some forex brokers in place of bank transfers.