The Forex Trading Course: A Self-Study Guide to Becoming a Successful Currency Trader, 2nd Edition

Chapter 18Paths to Success in Forex Trading

Ultimately, the knowledge gained in this book and in training in general needs to be applied to the real world. This involves taking practical steps such as choosing a brokerage firm to trade with. Competitive pressures in the industry are narrowing the difference between firms in terms of pip spread, platform, and technology offered the trader. The really important determinants of success will involve how well traders are prepared before they start real trading, and whether the trading itself follows a sound action plan.

Factors in Choosing a Firm

Although strategies and tactics are important, ultimately, the trades are placed at a forex firm. The industry is growing rapidly, and forex firms are available throughout the world. Selecting the right broker can make a difference. While there are essential features at most firms, the most important criteria for selection for a trader include the pip spread, dealing desk, customer service, and trading resources.

Pip spreads are rapidly becoming much narrower. Just a few years ago, five-pip spreads were the standard. Today two-pip spreads are available. Remember, if the spread is two pips, then the forex firm is still making money. It is offering you the currency pair with a built-in profit.

The industry is also evolving its dealing desk structure. Firms that have automatic dealing desks are becoming more common, allowing better spreads. The recent Swiss National Bank abandonment of the ...