Important Steps for Beginners to choose their forex brokers
Are you planning to invest money in the forex market? You have made a good decision but do it carefully because the market is volatile and sometimes the fluctuations are really high. If you have just entered the forex market then it means that you are starting from zero. A trader who is starting from zero needs more attention and guidance as compared the expert forex traders. Although you need good guidance to start your forex trading business but the important thing is that getting the good guidance is not at all difficult nowadays because of the availability of too many online learning resources and tools. These resources and tools will light your way through the dense forex jungle.
The Top Forex Brokers provide mentoring services, free virtual demo accounts, charts and signal services etc. Some websites also provide free or paid online courses. The courses can be print or web based. So if you are new to the forex market but want to do something good in the forex market and become a long life successful forex trader then you have too many options to choose from. Seeing at so many options, a beginner may ask that which option I should choose. Which option can be more money an experience gainer? To make the decision easier for you, some important steps essential for a beginner forex trader are listed and explained below so take a look at all these steps and follow seriously.
- Finding a Forex trading Broker
This is the first step that is very important for a beginner forex trader. If this step goes correct then you will enjoy trading in the fx market but if this step goes wrong then everything will go wrong. There are many types of brokers in the market. Some are large and some are small, some offer tighter spreads than others and some also offer additional whistles during the trading sessions. Each top forex broker may have some advantages and disadvantages so the selection procedure of selecting forex trading broker can be made easier only if you get the answers of these key questions while making the selection. These questions are listed below.
What is the location of the forex trading broker?
Is the forex trading broker regulated? If the broker is regulated then in which countries is he regulated?
What is the size of the brokerage firm?
What is the financial status of the broker?
How many employees are employed with the forex trading broker?
What are the services provided by the forex broker?
Does the forex broker provide 24 hour customer services via telephone or online chat support?
You should be serious towards your money and take care of its safety. There may be many events when your money may come at risk. What will happen if the forex broker becomes bankrupt? In such a situation you should be able to and know how to appeal for the safety of your money. Keeping in mind such a situation, you should find a Top Forex Broker that is both larger and regulated. Make sure to check whether the forex broker is regulated or not and the broker should be regulated in at least one major country such as US. It will be good if the broker is regulated in two major countries.
In some trading sessions, the foreign exchange market becomes very active and in such a situation, the servers may go down or crash. So it is important to check whether the top forex broker is large or not. A large forex broker can put more resources in his trading platform to make his system safe and stable against the highly volatile fx market. Many times you will want to place your trade order over phone and this will be possible only if the telephone lines of the broker are opened for 24 hours and the broker has too many employees to attend the phone call of customers so that someone is available to attend your call.
- Check the status of the forex broker
After you have found a forex broker, you should also check the status of the broker from the relevant forex regulatory authority. In the US, it is compulsory for all the registered Forex Brokers to submit their financial reports to the responsible regulators every month. Checking the status of the top forex broker would make his or her business practice transparent in front of you. The status can only be checked if the forex broker is regulated so always prefer to deal with the registered and regulated top forex brokers. One more advantage of dealing with registered and regulated top forex brokers is that you can quickly check the background of the broker and find out if the has ever been involved in any dispute or other serious problem.
- Test your broker
Once you have found a broker and checked its status, now you should take a test of your broker. Remember, testing your broker is another important step that should be taken before investing your real hard earned money. You can test a broker and his or her software by registering a demo account. The advantage of registering a demo account is that you can test the broker and his or her trading software without losing a single penny. Testing the forex broker will not only make you aware of the real trading practices of the broker but will also improve your knowledge of how the trading goes in the market.
- Research the Forex Market
If you have found an honest Forex Broker, then it is sure that the broker will provide you all necessary material required to learn the concept of the market but you should not depend only on the forex broker. Continue doing your research also even if the broker is providing full learning and trading support. You can research the market in several ways. You can go to online forex libraries that will help you to understand that how the trading goes in the forex market. You can register the demo account with other brokers also so that you can crosscheck the information provided by the brokers. You can also go to the newspaper sites to know about the important business or political events that might affect the market.
You can also register an account with other online forex tutoring sites that teach how to do the technical and fundamental analysis before placing any real trade. The most popular magazine in the forex market is the Economist. This magazine is so popular because it covers too many macro themes.
- Listen the signals provided by the forex broker and cash these signals
If you have registered with the best forex broker then you will receive signals and advices in every trading session so try to make money from these signals keeping in mind the budget that you have reserved for trading in the forex market.
- Trade with trend
It is the advice given by the most top forex brokers and forex experts and it works. Thus to trade successfully in the forex market, it is important to analyze the current market trend, and then trade in the direction indicated by the trend. Going against the trend is 90% risky.