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Becoming a Forex Broker

How to Become a Forex Broker


How to Become a Forex Broker

Reuters recently reported that the Forex market sees over $5.1 trillion worth of currency trades every day. All the world’s equity markets combined don't even come close to this figure. The trading of big amounts of money every day is one of the major reasons why some people opt to become Forex brokers, including experienced traders.


Of course, like in any other career, you need hard work and discipline to become a successful Forex broker. Those who succeed can make a healthy living through trading, but an added benefit of becoming a successful broker is networking with other traders who can assist you in forming a money management fund in the future. 

Understanding the Forex Market

Before you can become a successful broker, you need to have a good understanding of the Forex market. Make sure you fully understand the underlying principles behind currency pairings and different sub-disciplines that play a role in the field, such as technical analysis and macroeconomics. Be on the lookout for new jargon, pricing, orders, and anything else that can help you give sound advice to your clients. FXCM stated that the USD/EUR is the most traded currency pair in the world, which is a good place to start, but extra challenging if either one is not your native currency. If you're only familiar with the economic factors surrounding your country's currency, you will need to expand your financial understanding in relation to other territories.

That being said, don’t just rely on your own research. One of the most effective ways to learn about the Forex market is to talk to practicing or retired brokers. They will be able to give you practical advice that you will not be able to find in books. If you can't find any practicing or retired Forex brokers, search for online discussion groups.

Apart from advising clients, brokers need to ensure that their clients' software platforms are operating properly, meet their orders, and maintain an appropriate bid/ask spread, upon which you'll depend for revenues. Forex brokers need to be tech-savvy in order to meet their clients' demands. 

Get your certifications

Take note that there are no strict educational requirements to become a Forex broker. However, a degree in economics or business would certainly help your chances of becoming hired by a brokerage firm, if you wish to pursue a full-time employment.

Forex brokers licenses can be obtained by taking the National Association of Securities Dealers Series 3 test. The organization offers review materials online but in order to take the test, you'll have to be sponsored by an already-licensed brokerage firm.

Read more: Becoming a Forex Broker

Making Money by Scalping Forex

VantageFx RatingMaking Money by Scalping Forex

Want to make regular money day in, day out trading forex? A forex scalping strategy might be right for you.

So what is scalping and how does it work? Forex scalpers get in and out of the market at the drop of a hat, they don't chase big swings or trends, but rather seek to capitalize on the small intraday fluctuations that occur throughout the day in forex. In this quick look at forex scalping, we'll discuss the options available to you when selecting a scalping strategy and the importance of trading with a low spread, true ECN broker like Vantage FX.


Forex Scalping Strategies

Forex Scalping StrategyIf you want to start scalping forex, you're going to need to find a scalping strategy that works. With longer term trading, a strategy is not quite as important, but when it comes to scalping, the quality of your strategy will largely determine your success. When it comes to selecting a forex scalping strategy there are a couple of options available to you:

The first option is developing your own scalping strategy. Most longer-term strategies can be adapted for scalping with a little tweaking. For example, you could trade trendline breaks, candlestick patterns or use a range of technical indicators. Generally, you'll want to be looking at 1m or 5m charts, though many people consider the 15m chart great for scalping too. The main thing to remember is you're not usually going for high reward trades, the idea with scalping is to win more often than not, that is, if you have a choice between taking 2 pips and taking a loss, take the 2 pips.

A great way to start developing your own scalping strategy is to start playing around on a demo account, don't worry about blowing the account, just focus on taking lots of quick trades and seeing what works and what doesn't. You can sign up for a free forex demo account over at the Vantage FX website.

Don't want to develop your own forex strategy? Another option available to you is trading someone else's strategy. Forex forums are a great place to start if you want to trade someone else's strategy. Though most people keep their forex scalping secrets to themselves, there are a surprising number of helpful people out there who share strategies for free on forums. This approach requires a little less legwork, though you will still have to do a fair amount of research.


The Importance of a True ECN Broker

If you want to scalp the forex markets, it is essential you are trading on a true ECN account like Vantage FX's RAW ECN. Because you are looking to trade micro-movements in the forex markets, spreads really do matter. True ECN accounts let you trade liquid markets like EURUSD with spreads as low 0 pips, this means you can get in and out of the market with a few pips with relative easy. Scalping becomes exponentially harder as the spread widens. Difficulty aside, the majority of traditional brokers don't actually allow scalping, so if you want to make money scalping forex, you have to go with a true ECN forex broker like Vantage FX.

? ECN/STP order execution / Leverage up to 500:1

? Regulated by ASIC Australia (ACN 140 903 886)

? Client Account Segregation via the National Australian Bank (NAB) / Indemnity insurance policy ($20 million) with Lloyds of London


 Making Money by Scalping Forex

VantageFX, Regulated Australian Forex Broker



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