How to Get Started with Forex Trading

Before you can get started with forex trading, there are so many questions to answer. How do I choose a broker? Should I use a demo account? What do I need to know before making my first trade?
Let’s answer these questions one at a time, in order of importance.

The history of Forex

Back in prehistory, there was no concept of currency. A cow was a cow and a sheep was a sheep. People bartered goods for other goods. The problem was that when you traded ten sheep for five cows, you had to find somewhere to keep the cows. Cows are large; they don’t fit in your pocket. Something had to change.

Mesopotamia

Urban societies started to emerge in Mesopotamia about 5300 BC. Wealth was based on agricultural products – primarily grain. Grain was stored in temple granaries, and when people made deposits, they needed receipts – the receipt came in the form of a piece of metal.

By 3000 BC, this evolved into the shekel, a measure of barley. Shekels could be converted into metals such as copper, silver and gold.

Then, around 1700 BC, the Code of Hammurabi established formal laws in Mesopotamia. This included rules around the use of money in Mesopotamian society.

Money was born.