The Forex market is a commercial world of interesting possibilities. Currencies worth trillions of dollars are traded every day. It is also turning out to be a sector which attracts a lot of entrepreneurs with Forex business dreams. The currency trading market promises fast bucks in a short time. It is not necessary to be a trader to begin a Forex based business. In fact, the only skill you need to possess is an enterprising spirit and a calculated business plan. Having trading experience will indeed help you if you are going to form one of the related forex trading businesses, but even so this is not entirely necessary.
There are basically five categories of business that you can base around Foreign Exchange. These are:
- Forex trading
- Forex trading instruction/coaching
- Forex signal service
- Forex software and robot design
- Forex brokerage firm
All five can be started from your home and expanded over time. Some of these involve a little start up cost and some operational costs while for others the costs are significant. If you are simply looking to trade, you can begin with a tiny trading account with as little as $100 at most forex trading brokerages. For novice entrepreneurs as well as for seasoned Forex business minds, these five businesses can hold the potential for earning lots of money. We’re going to take a look at each of these options and see which ones make the most sense for you.
#1 How to operate a business as a Forex trader
If you learn how to trade currencies well then you can write your ticket to an unlimited income. Some traders are able to earn as much as 100% on their money every month, and sometimes more. The ability to take an amount of money and grow it into a larger amount of money is a highly desirable skill. Not only will you be desired by hedge fund owners and managers but you will be able to earn your own income from the profits you make on your trading account.
Some successful fund managers are paid millions of dollars per year to help manage the funds in an investment account. It is a heavy responsibility to manage other people’s money, but the rewards for doing so can be very significant. There are multiple ways to earn money by managing other people’s money, and some of those are discussed here in an article about being a fund manager.
As for trading itself, the market is constantly changing and what was true yesterday might not hold good for today. So you need to learn, practice, and master your trading habits every day. You can trade currencies on behalf of your clients or start a trading consultancy business. Even if you only look after your own interests, Forex trading is a good choice for growing money, as long as you are doing it correctly. Plus, there’s the added benefit of working from your home as many traders have the privilege of doing.
Learning how to trade in the first place
But how do you get started as a currency trader? How do you learn how to trade? There’s no shortage of information online about how to be a successful trader. Do a Google search and you will come up with millions of results. There are free courses available, as well as paid training courses. Some of the free courses are 10 times better than some of the paid courses. If you are brand new to this business and you’re looking for some instruction on how to trade then you may wish to visit a good resource website like ForexPeaceArmy.com. This is a good website and it can show you some of the instructional courses that are out there that you can purchase and learn from.
Some other good forex training resources include:
There are many places where you can learn how to trade Forex. Be careful with joining paid services unless you’re certain that they are trustworthy and offer credible trading information. There are more scams in the Forex market then there are good courses and trainings.
If you do wind up purchasing a course or are going through a free training then make sure you start of beginning and go all the way until you get to the end. Do not deviate from your plan. Do not let distractions get in the way of finishing the courses that you purchase. One of the greatest dangers you can run into is the trap of purchasing Forex materials and then never using them. Maybe you just put them on the shelf and assume that one day you’ll return to go through them. So many of us as traders have fallen into this trap, but I hope it is not one that you will repeat yourself. In the end of the day taking action in trading successfully is the only thing that will lead you to profit in this business. Do not let your desire for more training get in the way of taking action on the information you already possess.
#2 Teach others how to trade
If you have done well in this business and are a profitable trader with your own unique trading system, there’s no reason you can’t teach your system to others and earn a profit doing so. Forex traders are hungry to learn profitable systems to trade. One of the hardest things that most traders will say is keeping them back from success is having a profitable trading system. If you have such a system, and you can teach others, then you are in a position to not only help many other people but also to earn a good living at the same time.
There’s not enough room in this article to go into all the details that would be required to become a successful Forex instructor. There are several different directions that you could take if you wanted to be an instructor in this business. There are some companies like Old Tree Publishing which partner with successful traders who have unique courses. They do the marketing work and bring the students while the trader instructor creates the lessons for the course as well as works on teaching the students through printed materials and webinars.
Additionally, you could simply become a coach. There are a lot of traders who do not so much need help with learning a new Forex course or instructional method or trading system, but rather what they need is help with implementing the system and trading method that they already have. If you have a desire to coach others than you could become a Forex coach—someone who is there to help support other traders in a coaching type setting. This could be accomplished through private online meetings or something as simple as skype, and again is another way to earn money in the forex business.
#3 How to operate a Forex signal service
You can build your business as a solo trader or choose to allow others to subscribe to and receive your Forex trading signals. Starting a trading signal service is a great way to earn extra money as a Forex trader. You need to be a successful trader, or work with a successful trader, or have a proven and profitable trading robot and an effective platform to transfer your signals. Here, you are the master trader (or signal provider) with a master trading account. Whenever you place trades in your account, these are transferred to the accounts of your clients. Here is a detailed instructional on how to build your own forex signals business.
You can send signals via email and text messages, or you can automate them as well and provide your customers with a complete autopilot service. As a signal provider, you manage your clients’ wealth indirectly in the Forex market. You need a website to promote your business and a secure payment gateway integrated with your website in order to receive payments. Some people even just prefer the simplicity of PayPal. A signal transfer service is a good venture since new and old traders are always looking for additional ways to grow their money and trading accounts.
A signal service depends upon the quality of the Forex robot or signal source or trader you choose and the promptness of your updates and alerts. Your clients would expect the best of both. A good signal service will trade for them 24 hours a day 5 days a week and earn them money even when they rest, sleep, or carry on with other work. You can charge a monthly subscription which will provide you residual income month after month (so long as you have a good trading service and are making your traders money.)
#4 How to operate a business of designing and selling Forex related software?
Are you a programmer? Great. Why not utilize this skill and make money helping people program forex robots, indicators or other trading tools? If you want to learn MQL4 programming you can take a look at MQL4 video lessons from Jim Hodges.
As a programmer focusing on the foreign exchange market, you can make a fortune designing Forex trading software. Some of the basic programming needs fall in the category of designing tools for different trading platforms, but namely the MT4 platform.
MetaTrader programmers are always in demand and can make great money. You could also create trading robots and sell them yourself. Choose a profitable trading strategy and base your auto trading robot on the strategy. Clients will subscribe to a Forex service on the basis of the performance of its robot. If you develop a good and profitable trading robot then you can earn lots of money by selling it to others. You can also sell the signals that it generates as part of a monthly subscription if you so desire.
To earn money as a programmer there are a couple of routes you can take. Many programmers start out by doing one time projects for customers. They either charge a project rate or an hourly rate for their service and expertise. This is a relatively easy way to get started if you are a programmer and have taught yourself the language used by MT4, the most popular platform that is used to trade forex.
Alternatively, if you develop your own tools or indicators or robots then you could list them for sale on a marketplace like MQL5.com. This is a great website with tons of information and tons of traders sharing what they do. Some people share what they’ve created for free in the hopes of gaining some traction and followers. Others will sell the signals or software that they create through this marketplace to earn money. Here is a resource for learning a common programming language for MT4.
#5 Operating a Forex broker business
If none of the above business options suit your specific needs, you can try your hand in building a brokerage firm. This involves a large degree of investment. You need to hire staff and equipment and aggressively promote your firm. This is by far the most complicated way of making money in Forex. The potential is extremely large, however, and is best suited to the type of entrepreneur who has a ton of guts and a willingness to take boatloads of action.
Staff selection is an important part since your team members are going to be the real pillars of your trade. Hence look for people who are experienced with different trading platforms, robots, trade copiers, and spreads. You could also recruit traders to help trade for your clients. But as mentioned, this is by far the most complicated way to earn money in Forex. You’ll need to abide by tons of government regulations, including learning about the dozens of regulations for each country that you hope to do business with. This is not the subject of this article so you’ll need to look elsewhere for more detailed information on how to start such a business if it is of interest to you. To my knowledge the easiest way to start a Forex brokerage firm is with Boston Technologies.
What you need to start and run a successful Forex business?
Before you can begin, there are certain things you will need to take care of. These are overviews of the details. Each of these things will ideally need to be thought of in great detail.
Business plan: The first one is of course a business plan. Whether you are a master trader or a broker, a software developer or a trading coach, your business plan is the start of your business. Your business plan will help you design your vision and have a plan to achieve it. There are many articles online about how to build a successful business plan. Research these, take notes, and spend time creating your ideal Forex business plan. They should include how much you expect to invest in your new business as well as the expenses you’ll run into along the way. You’ll want to think of every contingency possible and plan for the worst, while you also planned for the best that your business can be.
Business permits: Depending upon the area and your locality, you may need to obtain a valid permit. Whether you work from your own home or from an office, a license keeps your business safe, taxable, and on the right side of the law. Unauthorized trades and traders are severely penalized. There are tons of government regulations (depending on the country you live in) also that govern the Foreign Exchange markets.
Business website: You cannot afford to lose out on thousands and thousands of clients just because you don’t care about a web presence. Hire a web designer, host a website, purchase a domain and reach out to global clients. Depending on your skills from your previous experience will determine how easy or hard this is for you. The more you learn along the way the better you will be able to do with your business. Some people like to do everything themselves, but don’t get caught in the trap of procrastinating if you don’t know how to do something. You can very often hire someone to do the work that you don’t know how to do.
You can use a service like Odesk.com or Elance.com to hire a programmer or web site builder to create a website for you. You can also hire content writers if you need someone to write the material that’s going to go on your website. Don’t let what you cannot to get in the way of doing what you can do. This means that if you do not know how to build a website, you should simply hire someone to do it for you. Yes, it is going to take money in order to hire someone, but in the end it will likely be worth it. You should have budgeted for something like this initially in your business plan.
Customer support: Every responsible business owner takes special care when it comes to customer service. It is not only about offering superior Forex related services but also other services like client questions and relationship management, payment management, and handling grievances from clients. I use online service called Zendesk to receive and reply to questions from my customers. This is a really really helpful solution for any business.
Business funds: This is entirely your decision. You might have money saved up that you wish to spend on your trading business, or you might be borrowing money from a friend or relative or bank to build your business. It is generally not advisable to bar money to build such a business. Do your best to bootstrap it and build the business slowly in the beginning without spending money that you cannot afford to lose. This is good advice when it comes to trading in Forex, and it is also good advice for building a Forex service business.
What else does it take to build a successful forex business?
The most important requirement is that of harboring a positive, practical expectation. No business takes off in its first fortnight of existence. However, if you plan well and execute them intelligently, there is every reason why you should flourish as you deserve. There are many different success training courses out there. One of my favorite is by Chalene Johnson. It really doesn’t matter which one you choose but find something that you like and that you believe in that can help you climb the mountain to your success.
Do not think that you’ll arrive at success overnight in the Forex business. While there may have been some “overnight successes” for the most part success in Forex comes after many years of hard work. We, as traders, often struggle for a few years before finding something that works for us. For some people, they are unfortunate and never find success in Forex. I hope you will be one of the few who do. Persistence and taking action will yield good results in the end. You must always be willing to continue on and never give up. If you need to, get some books on positive thinking and business success. They can help you to stay encouraged when the going gets tough, as it certainly will.
Have you decided on which direction you will go with your Forex trading business? Are you currently a Forex trader but long to become a Forex programmer as well? If so then take some classes on programming and learn how to be a programmer. Anything you want to do in this business can be done if you apply a enough of the correct efforts. If you fail at something, try and do better next time. If you feel you’re going the wrong direction, then stop and go and a new direction. But don’t stop taking action. Successful businesses are built on loads of positive action, course corrections and resilience.
If there’s one thing that I can guarantee you in the Forex business it is that you’ll get knocked down again and again and again. Even after you have found some success, you’re still going to get knocked down in one way or another. The best trading systems out there suffer drawdowns from time to time. I remember being discouraged when I built a trading robot that did well its first year trading, but then consistently lost money the year after. It was hard to get used to it first, but this is simply the nature of trading and the nature of a Forex business. As long as you are willing to carry on despite roadblocks, setbacks and failures, then you will have what it takes to be successful and build an income from the Forex business. I wish you the very best, and as always I hope you’ll put your comments and suggestions below.