If you want to get started in forex trading, here's a starter kit designed with beginners in mind:

• Find a Broker

Look for legitimate brokers who are regulated by the Commodity Futures Trading Commission (CFTC) and are registered with the Futures Commission Merchant (FCM). To save money, also look for a broker who allows for low spreads, or the difference between the purchase price and selling price of a currency.

Forex brokers make money through spreads, instead of through commissions, and the lower the spread the more money you make. Also avoid brokers with too-strict margin rules, which can hinder your trading flexibility and lower your profit. Finally, look for a portfolio of investing tools, including real-time reporting, updates on trends, and market analysis, all of which is vital in the fast-moving world of forex trading.

• Take a Test Drive First

Some brokerages have demo, simulation, or "paper" accounts that can help you learn the ropes of forex trading before using actual money. Try one of these out; it could save you money in the long run if you spend some time playing around first.

• Do Your Research

As with stock investing, currency investing requires that you research the fundamentals. For currencies, that means you research everything going on in that country that will have some bearing on its currency price fluctuations. Look at the country's politics, government, and economy, focusing on numbers such as the Consumer Price Index, retail sales, and durable good sales. You'll also want to do technical analysis of price trends and predictions.

• Devise a Strategy

Once you understand how to interpret currency fundamentals and do technical analysis, you'll want to develop your own strategy for when to get in a market, when to get out, and how to make that call. A good forex broker will have tools to help you develop a strategy for when to buy and when to sell.

• Beware Emotions

Don't let your emotions lead you when doing forex trading. Let your research and your understanding of international trends guide your way. Forex trading is not easy money; it requires diligence, intelligence, and a willingness to invest with your head and not with your heart.