If you’ve been trading in the Forex market for some time, you might be considering the possibility of going professional. Either becoming a broker, or a CPO (Commodity Pool Operator), or just creating a small business managing small customer accounts. Either advising clients about their Forex accounts or running them is simple enough, and there are several ways of going about it.
Many Forex traders start out by soliciting clients they know. It can be friends, family, co-workers or acquaintances- it’s the easiest way to gain experience in dealing with other types of accounts than your own, and also to start building a reputation. The downside to this is, of course, if you make any Forex trade mistakes and you lose their money. It is an excellent way to start going professionl with your Forex trading, however.
A broker can either be very experienced in the Forex trade market, with a solid reputation, or they can be registered members of the CFTC (Commodity Futures Trading Commission). Since Forex trade is considered a private investment, returns aren’t necessary to report. Which also means there’s no special diploma or certification. Being a registered member of the CFTC and the NFA (National Futures Association) adds a strength and legitimacy to becoming a professional Forex trader. You register with both as a CPO.
Whichever choice you decide on for becoming a professional Forex trader, you’ll need to hire a legal advisor that specializes in the Forex trade market. They’ll supply you not only with advice but any paperwork and documents you may need to become official.
Changing your Forex trading from a supplemental income to a full-time job can be a fairly easy transition. Deciding which direction you want to go into the professional Forex market, and building up a trustworthy reputation takes a little bit longer.
Source by Joseph Payton