Investors looking to enter the world of foreign exchange may find themselves disappointed and rapidly spiraling downwards, losing capital quickly, and becoming even more cautious. Investing in forex — whether in futures, options, or spot contracts — offers a great opportunity. Although, it’s a vastly different environment than the equity market.
Even the most effective stock traders will fail miserably in forex by treating markets in the same way. Equity markets require the transfer of capital, whereas the currency market is driven by pure speculation. Yet there are ways to help investors conquer the learning curve: trading courses.
- As an individual trader, it has never been easier for a number of online and mobile providers to access forex markets.
- With easy access, beginners can find it in their best interest to read about how the forex market works. Improving their skills and knowledge with forex-specific trading courses.
- Courses are offered online and in-person.
- Keep in mind the credibility of the course provider, reviews from past students, and whether the course has professional accreditation or qualification.
Forex Trading Forms Courses
There are two main groups when it comes to forex trading courses:
- Online courses
- Person training courses
Online courses can be compared to distance learning in college-level classes. The teacher will include PowerPoint presentations, eBooks, trading models, and so on. Students can pass through the beginner, intermediate and advanced levels that most online courses offer. For a trader with minimal foreign exchange experience, a course like this could be invaluable. These courses can vary from $50 to hundreds of dollars.
[Note: Investopedia’s Forex Trading for Beginners Course provides an in-depth introduction to forex trading developed by John Jagerson, charter holder of CFA and CMT, and founder of Learning Markets. With more than five hours of on-demand video, exercises, and interactive material, you’ll learn how the forex market works, how to evaluate currency pairs, how to create strategies, and more. The self-adjusted training course provides lifetime access and money-back guarantee.]
Individual training is far more precise, and the trader is recommended to have basic forex training prior to taking this option. The appointed tutor, usually a successful trader, will go over tactics and risk management with the student, but spend much of the time teaching over real trades. Person preparation costs between $1,000 and $10,000.
Strong performing Forex Trading Groups
No matter what sort of training a trader chooses, there are many conditions to consider before signing up.
The Rule of the Course
A quick Google search reveals approximately two million results for “forex trading courses”. To narrow your scope, concentrate on courses that have a strong reputation. There are several schemes that guarantee giant returns and quick profits (more on this later). Don’t buy the hype. A good training program would offer nothing but valuable knowledge and tested techniques.
The credibility of a course is better calculated by talking to other traders and engaging in online forums. The more knowledge you can learn from people who have taken these classes, the more assured you can be that you are going to make the right decision.
Certification of the course
Good trading courses are accredited by a governing body or a financial institution. In the United States, the most common regulatory boards that track forex brokers and approve courses are:
- Securities and Trade Commissions
- Chicago Chamber of Commerce
- Chicago Business Exchange
- Regulatory authority for the financial sector
- Association of the National Futures
- The Group of Future Industry
- The Commodity Futures Trade Commission (CFTC)
Not all trading courses or system promoters are required to be members of the National Futures Association or registered with the CFTC. Most of them are trustworthy and comply with the Code of Ethics of these bodies.
For those who think internationally, be mindful that each country has its own regulatory boards. Foreign courses can be accredited by various organisations.
Time and Expenses
Trading courses may require a strong commitment (if individual mentoring is involved). Or can be as versatile as online podcast classes (for online learning). Until choosing a course, carefully evaluate the time and expense responsibilities as they differ widely.
If you don’t have a few thousand dollars budgeted for one-on-one preparation, you’re probably better off taking an online course. However, if you intend to leave your job for full-time trading, it would be wise to seek professional advice; even at a higher cost.
Staying away from a scam
“Return 400 percent in a day!” “The profits are assured!” “There’s no way to lose!”
These and other catchphrases are littering the internet, promising a perfect trading path that will lead to prosperity. While these sites may be enticing, day-to-day traders should be clear, as absolute foreign-exchange financial guarantees simply do not exist.
Unfortunately, the increase in online trading, electronic networks, and open-access markets has fuelled a parallel increase of scams. The Commodity Futures Trading Commission ( CFTC) has long been concerned about questionable courses of action intended to prey on the unaware. “The CFTC has witnessed an increase in the number and complexity of financial investment opportunities in recent years, including a sharp rise in foreign currency (forex) trading scams,” it warned in a statement back in May 2008.
To ensure that the trading process is accurate, read its terms and conditions carefully, decide if it guarantees something incorrectly, and double-check its certificate and validity certification. In particular, beware of sites that explicitly display hypothetical returns or that display real returns without stipulating that ‘past success is not a guarantee of future results.’
If you think you’ve been defrauded, please contact the CFTC. The Commodity Futures Modernization Act of 2000 (CFMA) made it clear that the CFTC has the authority and power to examine and take legal action to close a wide range of unregulated firms offering or selling foreign currency futures and options contracts to the general public.
Other Forms of Forex Trade Education
While trading courses offer a structured way to learn foreign exchange, they are not the only choice for a beginner.
Many who are skilled self-learners will take advantage of free online resources, such as book trading, free papers, professional strategies, and fundamental and technical research. Again, even though the information is free, make sure that it comes from a reputable source that has no bias on how or where you trade.
This may be a difficult way to learn, as good knowledge is dispersed, but for a trader starting from a tight budget, it may well be worth the time spent.
The Bottom Line
Performance in dealing with stocks and bonds does not inherently give rise to currency performance. Forex lessons and trading courses — either by individual mentoring or online learning — can provide traders with all the resources they need to make a successful experience.