Trading forex--the foreign exchange market--can be a lucrative business that gives you the time and financial freedom to do as you want and live where you please. However, as anybody who has ever traded can tell you, it is not an easy business to become successful at. But if you are willing to put the time and effort in, there are a few tips on how to set up a forex trading business that may save you some headaches along the way.
Decide on a business model. There are many approaches to developing a forex trading business:
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You could manage your own money. You could manage other people's money. You could send out trading signals to other people.
If you are just getting started, then the obvious place to begin is to manage your own money first. Then you can start managing other people's money or selling your trading signals later.
Find a forex trading system that suits your needs and that wins consistently. The easiest way to do this is by going to ForexPeaceArmy.com. Here you will find hundreds of independent third-party reviews of trading courses, systems, software and signals. Since no affiliate links are allowed, most of the reviews are honest and unbiased. Finding a trading system is a personal decision, and you will need to choose one that fits your needs in terms of risk tolerance as well as your personality type.
Find a broker and test it out to see if it suits you. In order to do this, you will need to find a broker that has a simulator to use. Most brokers these days offer free simulator software. Two reliable ones that have been around for a while are Oanda.com and FXCM.com.
Choose a business type. You could just keep it as a sole proprietor if you plan on managing your own money only, although there are some legal and tax advantages that you will miss out on. If you wish to create a corporation without a lot of legal fees, then you can go to Nolo.com and use its pre-made forms to create one. If you plan on managing other people's money, then you will need to procure lawyers who can take care of all of the legal work for you. A good place to start is Greencompany.com (see link in References below), which specializes in helping people start up investment funds.
Build a track record. If you plan on managing other people's money or creating a website to sell trading signals, then you will need to create a track record of consistent winners. You will need a record of about six months of trades, both winners and losers, to show people that you are capable of making a profit. Greencompany.com can help audit your record to show that it is legit.
Build a website. If you have decided to build a forex signal service then you will need a website to attract customers. A good place to start off is SiteGround.com. It can provide you hosting as well as professionally built websites and templates to get you started.
Market your site. Whether you wish to do it yourself or pay someone else to do it for you, WarriorForum.com is a good place to learn everything there is about Internet marketing. An easy method is to use is pay-per-click search engines such as Google or Yahoo. You can start an account with as little as $20 and start getting traffic and potential customers immediately.
Things You'll Need
Computer with Internet access