Becoming a foreign currency trading dealer requires a good deal of informational knowledge about the foreign currency business. Learning the basics as to why currencies fluctuate in value relative to each other is essential before embarking on the business of being a trading dealer. The following steps should be strongly considered before attempting to enter this business:
- Set up a free practice trading account with one of the many forex dealers that are online. This will enable you to get a feel for the relationship of currencies to each other and why fluctuations in prices can often occur very quickly.
- There are over 150 major currencies of the world. You will need to decide if you want to deal with all of these or restrict yourself to the major ones.
- Be sure to evaluate the euro as it is one of the major currencies, along with the U.S. dollar. Also evaluate the Australian, Japanese and Chinese currencies. As part of this evaluation, obtain a list of world currencies which is available at many schools of business affiliated with major universities.
- Study the business of others who are currency trading dealers. Search for all the information you can get from others in the business.
- Once the homework and research has been completed and you are comfortable with your knowledge base regarding currency trading, it is then time to start looking at the business aspect of what you want to do.
- Strongly recommend: Incorporation or form an LLC. Many sites on the internet can give you information on this.
- Prepare a business plan. Know how and where you are going to get your business. Get to know people who travel extensively. Call on travel agencies and let them know about the business you are starting.
- Design a web site and let the world know what you are doing.
- Consider joining the Professional Currency Dealers Association.
- Become familiar with the Bank for International Settlements. (BIS)
- Subscribe to Worldwide Currency News.
- Familiarize yourself with the different types of currency dealers. This would include obsolete currency dealers, paper money and coin dealers. Also, there are rare currency and silver certificate currency dealers.
- Subscribe to Numismatic News
- Attend meetings and network with others who have the same interests that you do.
- Try to visit with and learn from others such as bankers who are in the business of foreign exchange.
While there is a lot to learn in starting a Foreign Currency Trading business, it can be very rewarding. No doubt you will find that you will learn a great deal about business, economies and politics all over the world. Dealing in foreign currency requires keeping up to date on world events. Knowledge that you can impart to people that you do business with will keep them coming back.