Forex trading is a very interesting yet amazing business and is definitely not for the fainthearted. In fact many would go as far and say that only a very select group of people are even capable of making consistent profit at all from the financial markets. Unfortunately for the rest of you out there, you fall into the 90/90/90 club which means that 90% of traders, lose 90% of the capital, within 90 days but then again if trading was that easy then everyone would be doing it.
There are very few people who are able to fully commit and be available to actively trade the forex markets, so this guide will be for those who have a full time job. It is common for people who are in full time work to take their trades when actually in work, lunch or at night. The issue with this kind of trading is that because the market is so fluid, being able to trade at random times throughout the day means that there are plenty of missed and wasted opportunities. However in order to avoid being part of this infamous group, there are a number of things you need to consider before you start on your forex journey. One of the first and probably one of the most important considerations is choosing the right broker. Below we will discuss some of the crucial things to consider when choosing a broker to aid you on your trading journey.
Forex trading is very lucrative and can be very fast paced, which is why it is important that the platform you use to execute your trades and perform your research has to be user-friendly. You see a lot of trading platforms out there that are clunky, busy, un-clean and generally just an eye sore to look at. Check that whatever broker you decide to use has basic features like technical analysis tools. These will aid you in your research and will help you make calculated decisions on which pair you should trade. Does it offer a news feed? News feeds are a great feature because you can see real-time information as and when it comes in, and could potentially save you from making a bad decision.
Security should be at the forefront of your mind at all times when looking for a forex broker. I mean, you’re dealing with money here so it’s a no brainer really. A top broker will offer the highest level of security at no extra charge, because let’s face it you’re going to be depositing hundreds/thousands of dollars to a person/company you’ve never met. You need to know that your money will be safe. Fortunately there is a way in which you can check the validity of your intended forex broker.
If you’re in the United States, you check the National Futures Association (NFA) or the Commodity Futures Trading Commision (CTFC). Or if you’re in the United Kingdom, there is the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).
Reputable forex brokers will allow you to withdraw your profits any time you want. Brokers really have no reason or the right not to give you your well earned profits. The only reason as to why they would hold onto your money is to make trading that bit easier. The withdrawal process should be by all accounts a very painless and simple one where you will make a withdrawal request and then you will be notified when the request has been approved.
- Trade Execution
When you decide to make a trade on your trading platform your broker must fill your position at the best possible price there is. They can’t manipulate your order to make you get filled later as this is considered fraud. Under any normal market conditions there is absolutely no reason for your broker not to fill your order at market price.