First, you need to understand what a broker is, because you will need one.
You see, you don’t directly interact with each exchange in the FOREX market; brokers do.
Brokers are agencies hired by traders. They perform the trades as commanded by investors with the money they deposit in said firm’s accounts.
A broker works in the following way:
- You open an account with them.
- Deposit the capital you wish to invest in.
- With that, you’ll gain access to their trading platform with which you’ll proceed to evaluate the market and set the orders.
- Establish orders in which you tell them how much you wish to buy or sell and at what price.
- They take the money given and start to perform according to what you told them, following quantities and risk management strategies set by you or any trader employing them.
- Once everything is done, they proceed to hand each investor the result of their operations.
Other things to take into consideration is the fact that many brokers offer training programs and DEMO accounts aimed towards training you to become a more efficient trader. DEMO accounts, additionally, let you simulate trades without spending real money so that you can train until you feel confident in your trading skills.
All in all, there are not many valid reasons not to start trading in FOREX. Just remember the golden rule: never invest more than what you can afford to lose.