Tools Needed
To trade currencies you need the following:
- Computer equipment & High-speed Internet
- Firewall and anti-virus protection
- Charting software
- Trading Platform
Computer Equipment & High-speed Internet
You need a modern computer with high-speed internet connection.
An outdated computer and unstable or slow internet connection could jeopardize your trade. When you enter a trade you can't risk your system crashing or your internet connection failing. That could make you miss an exit signal designed to protect your profit. Worse still, you may not be able to place a stop order, resulting in loss of your trading capital if suddenly price moves drastically against you.
You need to be able to follow the market price and place orders in real time. A slow internet connection, or an outdated computer system does not let you do so.
Ideally, you should have at least 2 monitors (17'' or 19'' LCD) using the first monitor for charts and the second to display your broker's trading station. This is not to suggest that you should buy more than one computer. Windows XP lets you easily configure your system to operate with multiple monitors.
Here are minimum and recommended system requirements:
| Minimum | Recommended |
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Firewall and anti-virus protection You need to protect yourself against hackers and viruses. Otherwise you risk your login information being stolen and your trading account accessed. Bad news all round.
Charting software You need appropriate charting software to enable you to set-up, monitor and manage your trades.
Your broker will likely provide a free charting package. This should let you do all the basics, including the insertion of technical indicators on your charts.
More advanced charting software that lets you do a lot more are available, but are not free. Most are offered on a one-month free trial basis to which you may avail yourself.
Trading Platform You trade currencies via your broker's trading platform. Your choice of broker and the quality of their trading platform are critical to your trading success.
We've devoted an entire section to helping you choose a competent forex broker based on objective criteria, and our own experience.
