What to look for in Forex Training.
There has been an explosion of Forex training services over the past 20 years and finding a reputable trainer can be challenging if you are new to the Forex industry. But there are some simple tips that you can follow that will help you chose a reputable Forex training service that will provide you with sound advice and support.
Google is likely going to be the place you first search for a Forex Training service and when you do it is important that you understand who is who when you are offered answers to your Forex Training questions. Who is buying the Forex training search terms you are looking for on Google. If you type in Forex Training into Google there is a high probability that a Forex Broker is bidding to ensure their website is showing at the top of your search. I will repeat the following through this article. Learn to trade from a specific Forex Training service that is licensed and is not a broker.
Forex Brokers due to financial regulations offer very limited Forex Training services, but they will be bidding and buying on virtually every forex and trading keyword search. They will often appear to be a training service provider and they generally advertise their training as “free”. If you choose this level of training the quality of training is likely going to be very general in nature and the value will be limited. Many Forex Brokers offer good quality general information about the Forex market but they are not going to teach you to trade successfully. Forex Brokers are in the business of opening as many accounts as they can and raising as much money from those account holders. They are not in the Forex Training business, they are in the transaction business and in most cases Forex Brokers are market making brokers, meaning when you lose they win. It is to their benefit to see you lose money. Whilst they may provide some level of free training, learn to trade from a specific Forex Training service that is licensed and is not a broker.
When you do find a specific Forex Training service that is licensed it is important that you ask some basic questions before investing any money in their service.
- Can you visit their office? Do they even have an office? Many Forex Training services that you will find online do not advertise a specific business address. Why not? If they don’t have a physical address then how reputable can they be?
- Are they licensed with the financial regulators? In Australia, if you offer a Forex Training service the company and staff providing the training must be RG146 qualified, hold an Australian Financial Securities License or be a Corporate Authorised Representative of an AFSL licensed company.
- How long have they been in business? Have they won any awards for their training services? Are their senior staff recognised in the industry and have they been invited to provide commentary on the Forex market to any media outlets? The answers to these questions will likely be on their website. If not ask.
- Do the trainers actually trade? Can you follow their personal trades each month? Surely if a training service is charging a fee for their advice they will be willing to put their training into practice each month and tell you what they are personally buying and selling each day. Many Forex Training services are just that, training. Find a training company that also trades and is willing to give you their trades every day when they execute them into the market.
- Do they have real testimonials from clients making money? When I say real I am talking about real names, Christian and Surnames with real trading accounts to back up the success. You will find many companies advertising client success stories, however, most of the time you will simply see a Christian name like “Jim” and Jim’s written testimonial. My advice is to find a company that is willing to show you, real clients, real trading statements backed up by the real faces and real full Christian and Surnames. Do they have video testimonials of these people anywhere on their website ?
When it comes to Forex Training 90% or more of Forex Training services offer only technical analysis training with very limited emphasis on learning the Fundamentals of how financial markets work. Investment Banks, Hedge Funds and successful Forex traders will be using a combination of both technical and fundamental analysis with outstanding risk management. Most Forex Training Services focus on technical analysis for a few reasons. It’s very visual and easy to explain charting patterns to novice traders. Many Forex Training services are run by trainers that are not successful traders. They are teaching basic technical analysis and it’s this basic technical analysis that 95% of losing traders are using. Learn to trade from a specific Forex Training service that prides itself on teaching Fundamental analysis and risk management as a large part of their program. If they only teach technical analysis then you will be trading with one eye closed.
- Do they offer live online training daily? Learning to trade from a seminar or a series of videos is really not good enough. To trade successfully you really need to be shown how the trading system works in a live market environment, not just a video or in a seminar. Ensure your Forex Training service provider offers weekly live training where you can watch and learn from their traders in the live market. I would be sceptical about buying any training service whereby the service provider will not train you in the live environment and demonstrate and trade the system.
- Do they have ongoing costs? Once you purchase the service are there any ongoing or hidden costs? Can you call their office for support without any additional costs? Can you chat online with their customer support team without incurring costs? Call their office a number of times before becoming a customer and see what the experience is like. Can you call their office? If you can’t call them then don’t buy their product.
- Do they also offer face to face training? If you are initially buying an online service and potentially live online training does your investment also give you access to any face to face live training with their traders?
- Can they help me set up my account in the right structure to minimise tax? There are a number of different ways to structure a trading account when you set it up with the broker. A reputable and quality Forex Training company as part of its service to you should provide general advice on how you can set up your account in the right structure to minimise tax. In Australia, you can set up a Forex account in your personal name, company, trust and even in a self-managed super fund.
- Can they log into my computer and help me set up my charts? If you are new to Forex you will likely want some assistance to help you set up your trading platform and learn how to place trades. Does your Forex Training provider offer a service where they can log into your computer and train you on the basics?
You may be thinking. “I want to take the easy option. I’ll buy a Forex robot.” A Forex robot is generally a piece of software often called in the Forex industry an Expert Advisor that is loaded onto a customer’s trading platform and executes trades automatically based on the parameters that have been entered by the program developer. The attraction is “hands-free automated trading”.
Most Forex robots are generally not licensed products meaning the developer does not hold a financial securities license. Many Forex robots are also not designed to make traders money, rather they are developed to churn clients accounts for brokerage, this is then paid to the Forex robot developer in the way of a rebate. Forex brokers offer Forex robot programmers who often are also Forex Trainers a slice of their brokerage fee and therefore the more the Forex robot trades, a trader’s account, the more money the Forex robot programmer makes. Beware if you are buying a Forex robot and you are being told you must use their introducing broker, you are likely being set up to benefit the Forex robot programmer. In most cases, the Forex robot programmer makes money and the trader who bought the Forex robot does not. You must be aware that any trading system whether it is automated or manually executed is going to perform differently in certain market conditions. One month or even one year’s trading performance does not mean future profits are assured. Be extremely careful when buying a Forex robot and if you do decide to invest in one run it on a demo account for some months before risking any of your money. Also, ensure that you are not limited to one broker and you can apply the robot to any Forex broker.
Learn to trade from a specific Forex Training service that is licensed and is not a broker.
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