Forex trading remains very popular, with many traders worldwide active in the market each day. If you’ve been thinking about starting to trade forex yourself though, there are some things you should about first.
So to help you out, we’ve listed the 5 key things that you should know about trading forex.
This list covers the most important points, which will definitely help you to get started on your trading journey.
1. Choosing the Right Platform
To start trading, you’ll need to find yourself a good online broker platform to open a trading account with.
However, with so many platforms to choose from, you need to find the one that suits you best.
For example, some brokers will offer their own self-developed platform with analysis tools for you to use. Others may provide alternative trading software such as the popular MetaTrader 4 or MetaTrader 5 platforms.
No matter which one you choose, all platforms will come with various features and analysis options for you to use. This is why it’s vital that you do your research on a broker before signing up.
Some platforms may also specialise in select areas. For instance two leading brokers that we want to mention are IQ Option vs Plus500.
They are both fully regulated, and they have many customers from countries worldwide. However, both are known for various things.
For example Plus500 is known for having a well-designed and simple to use platform. They also offer their platform as a trading app for iOS and Android devices, so great for trading on the move.
They also have a wide range of assets available for trading as CFDs besides forex. This is why Plus500 is a perfect option if you’re looking for a simple platform that is easy to use.
IQ Option on the other hand is famous for offering a very low minimum deposit, in fact it’s one of the lowest in the market. To start trading with them you just need to deposit $10, a great amount if you don’t want to spend too much.
They’re also known for having a great educational hub featuring videos that cover all aspects of forex trading.
Most importantly, both of these brokers are regulated and secure to trade with, which takes us to our next point.
When you’ve found yourself a broker that you would like to use, it’s very important that you check that the broker is regulated and if they hold regulation licences.
Regulation licences are provided by official regulation authorities. These authorities set in place financial rules that are designed to protect traders against fraud and scams. They also ensure that brokers follow these rules, and will punish them if they don’t.
Regulation is vital as it ensures that you’re trading safely and securely. So if a broker does not have a regulation licence, they should not be operating.
Unfortunately, there are unregulated platforms that are looking to scam people all the time. These are the ones that you should avoid at all costs!
This why you must check that the broker is fully regulated before trading with them so you can protect yourself from illegal platforms.
To check a broker’s regulation licences, the broker should have this information displayed on their homepage. Some main regulation authorities that you’ll probably see listed include the FCA (Financial Conduct Authority) and CySEC.
For example, both Plus500 and IQ Option hold multiple regulation licences from many authorities, including both the FCA and CySEC.
3. Demo Account
One very important topic that everyone should know about is a forex demo account.
Many online brokers will let new customers test and use their platform with a demo account. This can be used for free and it’s a great way to see if you like the broker or not.
A demo account will come with virtually the same tools and design layout as a real trading account. More importantly the account will come with an amount of virtual funds for you to practice trading with. Normally this ranges between $10,000 to $100,000 depending on the broker.
With these funds you can test forex strategies and see if trading suits you or not.
There is no need to deposit money to use it and no obligation to stay with the broker if you don’t like the platform.
It’s a perfect way to test everything without having to spend money. This is why a demo account is an important tool that you should definitely take advantage of.
4. Forex Education
If you’re new to Forex trading, you may not fully understand how it works or know where to start.
That’s why many platforms now provide free educational tools so that you can learn about forex. Educational tools can include video tutorials, live webinars and topic guides that cover a selection of forex topics.
Every broker will have different education resources available, which is why it’s worth seeing what they have and if it can benefit you.
Gaining knowledge on forex will help you to become more confident as a trader, so it’s always worth to use the tools provided.
5. Personal Account Manager
The last thing point on our list is a special broker service that nor many people know about. That service is the assistance of a personal account manager which many brokers provide to new customers.
These personal assistance managers will be able to help you with any platform related questions, and they can also suggest forex strategies to new traders.
It’s a service that can help you feel more comfortable trading if you’re a beginner. So if you have any questions it’s easy to get in touch.
An account manager can usually be contacted via phone, email or live chat, and they’ll gladly assist you with any trading questions.