As a new trader, how important is it that I understand the behind the scenes of forex trading?

By behind the scenes, I mean things like learning about prime brokers, ECNs, liquidity providers… At what point in my trading journey will I absolutely need to know these things?

I tried to read up on it a little, it looks like it can come in handy when selecting a broker (??) but if I’m already with a regulated/reputable one, does it matter so much? :open_mouth:

That’s a good question. I’ve wondered the same thing from time to time. However, currently I’m trying to divest my trading to include equities and commodities. I have no clue how to trade those markets.

Depends how you trade , personally I dont bother with anything like that as just over complicates the process, if day trading and looking to be in and out within a few hours a they dont make a lot of difference

It is extremely important for a beginner to understand the work of a trader, or at least try to understand it. Only in this case, you can get a result that will bring profit.


its a good reply from all , thanks Mate for your nice post, i agree every single word that you have explained, thats why never wrote something.

For awareness, trading currencies are not limited to straight up “Forex” brokers. There are other trading vehicles: Currency ETFs, Futures

All come with their own set of nuances and caveats.
What you ultimately end up trading will depend largely on how you develop as a professional and what feels “natural” to you. This only comes with time, so don’t stress if things don’t click. It can take 3, 5, 10 years for “things to click”. Only to get comfortable and over-confident one day, and the market reminds you who is really in control…

Yup, this is what I’m thinking also. :slight_smile:

Yeah commodities sound… expensive??

Yeaaah. I’m still far from that over-confident level. :sweat_smile:

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If you are new to Forex trading, you might see it easy and sparkling from outside, but when you’ll get to know the behind the scenes of it, you’ll find out that Forex is not a quick-buck scheme. The Forex markets are never constant which makes it essential for the new beginners to analyze the hidden risks before getting started. The outcome of trades are simply unpredictable and definitely you don’t want to risk too much on any particular trade.

Ah yes, I’m the best person to know that this isn’t a get-rich-quick scheme :sweat_smile:

It is very important to understand about forex trading before starting it. You need to have a look on the broker you are choosing - spreads, leverage and trade execution of that particular broker. You must be acclimated to forex trading. Expert Advisors ( EA ) is a great idea in forex trading as they will put in the best profitable trade for you.

As a newbie my suggestion is that you not use EAs. First learn to trade. That is paramount.

You sound like you’re shilling an EA. :laughing: