It should go without saying that learning to trade Forex will make you a better trader and give you more profits.
Forex trading is relatively new when compared to trading stock and futures and is fairly unregulated. This is important information to know because when you choose a Forex broker you want to make sure that your money is safe. Unfortunately not enough people tlak about this and people continue to throw their money into the Forex market in a carefree fashion.
You will hear a lot of the tremendous advantages of Forex trading over that of stocks and futures. What you typically will not hear is that if your Forex broker goes bankrupt that current regulations will not protect you as regulations for the stock and futures markets will.
As of the writing of this article there are a number of Forex brokers that are dangerously close to the minimum Net Capital Requirement as listed in the “SELECTED FCM FINANCIAL DATA AS OF October 31, 2008″ from the CFTC.
Make sure when selecting a Forex broker that you choose one that is liquid enough to survive during especially challenging econmic conditions.
You can actually start learning to trade Forex before selecting a broker, but I thought it especially important to cover a something that could have been a pitfall for you.
