After learning some basic knowledge of the financial market and forex trading, investors should be well-prepared and pay attention to some details before entering the market.
- Choose a good broker
Investors should be mindful of the reputation of the broker, so it is necessary to check if the broker is legally regulated and licensed, and how long the broker has been in the market. If these conditions are met, credit risk can be substantially reduced.
In addition, if the deposit and withdrawal of funds is not convenient, or the processing speed is low, then when investors need to add margin in the account or withdraw money for urgent use, it may face “risks”. So before you start trading, you should pay attention to the ways of deposit and withdrawal. It is better to choose brokers who offer more funding options.
Another important factor to consider for investors is the availability of trading products and the ease of use of the platform. A variety of tradable products means that investors can seize more opportunities to make profits, and if the platform is easy to use, it means investors can be more efficient in trading. However, at present, most brokers are using MT4 trading platform, so there is not much of a difference. The main problem would be whether the connection quality is stable or not.
These are some of the key points to look out for when screening brokers.
- Open a trading account that suits you
Choose what type of account to open is also an important question. Generally, mini account and standard account are more common two. The main differences between the two are spread and contract size. In addition, the leverage, margin out ratio and so on vary according to the requirements of brokers.
To put it simply, the mini account provides a relatively smaller transaction size, with a relatively low minimum required deposit, and is more suitable for beginners when they are first entering the market. More experienced investors can select the standard account to get a more competitive spread offering that may increase profit opportunities.
Finally, ECN account (also known as professional and premium account) connect investors’ orders directly to the market, matching trades in the OTC market. The main feature of this type of trading account is that the investor can enjoy a spread (raw spread) close to zero.
Generally speaking, investors should first make clear their investment experience, direction, strategy, capital size, and so on, and then decide the account type.
- Remember the difference between real account and demo account
If investors are afraid of starting their trading journey at the first step, some brokers also offer demo account for beginners to practice on. After all, investors’ “real” money is not at risk if they are just using the demo account, so investors sometimes won’t take the gains or losses of the trades seriously. Without emotional factors such as “greed and fear” brought by real trading, investors often won’t be able to get good experience and may have some illusion of “it’s easy to make money”. These bad habits are likely to work against investors in real trading. It is suggested that investors must take the demo account seriously, in a way of verifying and developing their own trading strategy. In addition to being an important practice before real trading, this is also a step in developing a good trading mindset.
Generally speaking, the above are just some of the key points before entering the market. Keep learning in real trading, getting useful experience would be the only way to become a successful investor.
- The Best Trading Platform Award 2019 from Financial Weekly, Regulated by FCA & FSA.
- 100+ trading assets, including Forex, Stocks, Indices, Gold, Crude Oil, etc.
- 3 types of trading accounts to meet the needs of every customer
- 0 commission, low spread, leverage ratio up to 1:2000
- Powerful trading platform that executes 50,000 orders/s
- Open an account with a minimum deposit of $50
- 24-hour Customer Service
Risk Warning: The above content is for reference only and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations conducted in accordance with this article. Please be firm in your thinking and do the corresponding risk control.