This article is about entering the FX trading market and how you should go about it.
New traders with no experience in the FX trading market should ensure that they start at the beginning. You should not jump certain sections of your training or try to start trading in the live market before you have gained sufficient knowledge and confidence in your trades. You can obtain many free online forex training courses and resources to help you on your path to success.
The first step after training is to find a forex broker. Forex brokers differ in the services they offer traders. Some have larger brokerages than others, whilst some offer tighter spreads and other offer you all the additional features you could ever need. All forex brokers have their pros and cons, but there are a few basic factors you should consider before you decide on one.
You need to know if the broker is incorporated. If it is, in which country is it incorporated. You have to find out if the broker is registered with its local regulatory body and if so, which regulatory body it is registered with. To make for ease of trading, you need to find out the size of the brokerage, the number of staff members it employs and if it offers a 24 hour telephone customer support system.
To ensure the security of your funds, you should consider registering with a large brokerage that is registered with at one or two of the regulatory bodies situated in the major currency countries. The larger brokerages have the funds to offer you better technical and customer support. A brokerage with a large staff complement will offer you easy access by email or telephone. You will always be able to connect with someone if you are experiencing technical or trading problems.
FX Trading Test Account
Before you sign up with a forex broker, it is recommended that you test their trading platform to ensure that it suits your needs. This can quite easily be done by opening a demo account. Most test accounts offer you the same functionalities as that of the live standard trading accounts. You gain access to real-time prices and information related to the FX trading market. The main difference is that you do not trade with real money.
A demo account gives you the opportunity to become familiar with the broker’s trading platform and this will aid in your choice of a forex broker. It also offers you the opportunity to test your trading plan and trading strategies before trading live. You should continue trading in your demo account until such time as you feel confident enough to venture into the live trading arena. You need to ensure that your trading strategies are making profits before you stop trading in your demo account. It is recommended that you trade in your demo account until such time as you are showing consistent profits using your strategy. A demo account offers you the chance to adjust any flaws you may experience in your strategy and re-test it.
Newcomers to the FX trading market may think that forex trading is quite difficult. It is not an easy career to follow, but you can undertake training courses, both theoretical and practical, to make it easier.