Mastering The Currency Markets
The inexperienced may believe that forex trading is a game of luck, but this couldn’t be further from the truth. The currency markets are incredibly complex, and it takes a skilled mind, hard work, and determination to master their many intricacies. Although fortune has its part to play, success in the markets is more akin to successfully unravelling a mathematics equation than it is to triumphing at a game of cards.
This is good news for aspiring traders, as it means that it’s eminently possible to tip the odds in your favour. With the right tactics and strategies, and an in-depth understanding of how these volatile assets are driven, you can dramatically increase your chances of success, especially if you start by learning the stock market.
Choosing the perfect broker is just one aspect of cracking the equation, yet it’s one of the most fundamental. With this strong foundation to guide your hand and focus your strategies, the groundwork is in place to secure the profits that you need.
If you’re unsure of where to start your search, then here are a few tips to help you…
#1: Calculate Your Budget
One of the most important factors to consider when you’re choosing a broker is the budget that you have available, and this should be one of the driving factors behind your initial search. Although the most economical option won’t always be right for you, breaking the bank early on will negatively impact your future trading, as the aim of the game must always be to turn a profit.
If instead, you indebt yourself early on, then the battle is already lost. Take the time to sit down, work out how much you can afford to spend – on both your broker and your trades – month on month, and then go from there to find suitable candidates.
#2: Assess Your Degree of Experience
There are a few more considerations that you need to take into account before you properly start your search, and one of these is the degree of experience that you possess. Brokers generally fall into one of three categories: execution-only, advisory, and discretionary. These services offer differing levels of support, and in some cases, trading will be your sole remit, with no one on hand to offer you advice. In order to achieve success within such a trading framework, you clearly need a degree of experience to fall back on, and if you don’t possess this, then execution-only packages probably aren’t the right choice for you. Although discretionary options may still be out of
In order to achieve success within such a trading framework, you clearly need a degree of experience to fall back on, and if you don’t possess this, then execution-only packages probably aren’t the right choice for you. Although discretionary options may still be out of budget, you may wish to either compromise with an advisory broker or go away and brush up on your knowledge before you begin to trade.
#3: Evaluate How Much Time You’ll Have to Trade
When it comes to choosing the type of broker that you need, you’ll also want to take your time availability into account. Execution-only trading can be very time intensive, so if you’re working around an existing job, as well as family commitments and other interests, then it might not suit you. Advisory services could be a better option, as there will be professionals on hand to take some of the burdens from your shoulders. However, should you really find yourself short on time, a discretionary service, which requires no real involvement from the trader, may be your only suitable recourse.
However, should you really find yourself short on time, a discretionary service, which requires no real involvement from the trader, may be your only suitable recourse.
#4: Consider the Currency Pairs You Would Like to Trade
Once you have an idea of the budget available to you, as well as the level of support and the type of service that you’ll require, you need to narrow your options still further by deciding upon your currency pairs. There are numerous combinations to choose from, and although most brokers will offer those that are common to the markets, the same cannot be said for more exotic pairings. These niche options may have a more limited number of brokers who cater to them, which could make your search more complicated. Despite this, it’s important to continue looking until you find professionals that provide all of your choices so that you never have to compromise on the currency decisions that work best for your strategy.
These niche options may have a more limited number of brokers who cater to them, which could make your search more complicated. Despite this, it’s important to continue looking until you find professionals that provide all of your choices so that you never have to compromise on the currency decisions that work best for your strategy.
#5: Seek Recommendations
With your currency pairs in mind, you should be able to compile a rough shortlist of possible brokers but to whittle it down still further, it’s useful to ask for recommendations, both in person and on the internet. If you have friends or colleagues who have dabbled with the currency markets, ask them who they use and how they’ve found them.
You might also want to take the time to research recommendations online, and will probably find it informative to ask for advice from other users on appropriate forums. If professionals have clients who are pleased enough with their service to take the time to praise them, then this should definitely carry some real weight when it comes to making your choice.
#6: Speak to Those on Your Shortlist
One of the most important things to take into account is how well you gel with a particular company, and even the most well recommended should be discounted if you don’t feel that they complement your needs. The best way to ascertain this suitability is to converse with those on your shortlist in person. Take the time to call around and speak to the professionals you would be working with, asking them any questions or queries that you might have.
You’ll soon find that some seem to balance your requirements to a far greater degree than others, and it is these that you should favour when it comes to narrowing down your choices and settling on a final decision.
#7: Demo Facilities
Before you sign on the dotted line, there is one final step that you need to take: demoing the broker’s facilities. Almost all brokerage firms will offer you the opportunity to do this, and it will help you to get a real idea of the scope and suitability of their service and trading platform. Indeed, companies like ETX Capital tend to be all too eager to showcase their offerings, and will be happy to talk you through how everything works. Only if you’re entirely satisfied with their service should you commit to contracting them, but if you can honestly say that you are, then you’ve probably found the perfect broker for you.
Indeed, companies like ETX Capital tend to be all too eager to showcase their offerings, and will be happy to talk you through how everything works. Only if you’re entirely satisfied with their service should you commit to contracting them, but if you can honestly say that you are, then you’ve probably found the perfect broker for you.
Choose the right forex outfit for you and your strategy will be off to the optimum start. Why not begin your search today?
If you are a solid trader looking for a mainstream investment you may also be interested in trading in the stock market. If you are asking you are unfamiliar with the stock exchange and trading than you may also want to check out the fundamentals of the stock market by visiting this page: What is Stock Trading…
You can also learn the basics and learn How To Buy Stocks For Beginners which is an informative article to get you started the right way.
