Commodity Forex Trading – Money Makes the World Go Round

When it comes to the commodities Forex market, trading in currency is a relative newcomer to the world of trading but has grown to trading $2 trillion dollars a day.

Trading currency on the Forex is somewhat different from trading in other commodities, stocks and futures, in that it does not take place in a regulated exchange.  This means that it is not controlled by a centralized body, in fact there is no clearing houses or panels to offer arbitration or guarantee your trades.  The trades are done among the members themselves, based on each other’s credit.

This may seem odd for the newcomer who is used to the strictly regulated NYSE, but in essence since each member has to compete against the other members a regulatory board is not necessary.  Not only must they compete, but they must cooperate with each other which allows for self regulation and effective controls over the market.

So how do you make money in the Forex currency market?  There are people who make millions everyday in the market and knowing how to is no secret.  First you need to do lots of homework; you are going to need a trading platform before you can even get started, unless you want to pay for broker.  A Forex trading platform allows you to perform your own trades from your computer in real time.

Choosing a platform is where the work comes in, there are several things you should look for when choosing your platform.  First it should come with a training program that allows you to practice trading in a real time setting until you are confident that you are ready to go live and start trading in real money.

The company that runs the platform makes their money on the pip spread and a reputable one is not going to charge you a commission for their part of the deal.  Beware of any platform that has hidden fees and charges such as withdrawal and transfer fees, the best ones have none.  Another thing to look for is the ease of making deposits and withdrawals from your account, find one that takes credit cards, wire transfers and companies like eBullion and eDinar.  The more ways to fund your account the easier trading will be.

Lastly make sure that you can access your platform from anywhere, this means other computers, PDAs and cell phones, after all you do not want to miss that great deal because you had to leave for a few minutes.  Your platform should also issue an automatic stop on your account if your trades are going to take it into negative territory to protect you from debt.

Forex commodity trading in currency is a very fast paced lucrative way to make money, but it takes time and skill to take advantage of it, spend plenty of time with the practice software and be sure you are willing to put in the time it takes to learn before you invest your money.