Opening a trading account is a must, and is necessary despite people telling you the opposite. If you want to trade Forex, which is decentralized, you need a third-party (a broker) to work with. Selecting a trustable forex broker is an essential first step to becoming a successful trader. An expert (experienced broker) can help you a lot, especially if you are a beginner and guide you through the process. You need to know that it’s useful to research your own and have a goal (why you want to earn money trading). It will help you develop faster, and you will be able to ask questions instead of waiting until you get to that part with your broker. A broker is also there to tell you not to invest too much at once, but rather be patient and go slowly, because no expert wants to see their client fail, and this is a common thing if you rush things and invest mindlessly.
Checking for licence and certificate
The internet should be the place to start researching since Forex (Foreign exchange) is a decentralized market; thus, it operates online. It’s important where you search, and that’s why we wanted to give you simple guidance that works. People are generally scared of scams, especially in the trading world, and you can easily avoid them if you follow the next steps. You should keep in mind that scams are not limited to Forex, but to anything that is being sold, so this is not an exception. What is good is that we have websites acting as “regulators”, so you can quickly check if the brokerage you want to work with is licenced. Depending on where you live, some websites keep and update a licenced list of brokerages. If the company you are interested in working with isn’t on the list, this means you should search further, since they are probably a scam. For brokers, the process of research is relatively easy as well. Reviews are the most important here, and people’s opinion can tell you a lot. There are paid commentators that will say a specific broker is the best, but since many people can comment and review, you will quickly figure out if bad reviews prevail over good ones. A good broker always has an excellent portfolio online, Linkedin, and other media you can reach them, and you can find out about their business life a lot. If you can barely find anything about the broker you may already speak with, then don’t talk to him again – it’s a scam.
What beginners usually start with
You will decide with your broker once you both are sure what your goal is, but beginners usually focus on major currency pair trading at the beginning, since it’s the “easiest” to begin with. You are probably already familiar with major currencies such as EUR, USD, GBP, etc. You will learn how these pairs work once you start, and you shouldn’t fret about it, since you will probably start with a demo account first. It is like a trial version of the market, where you get a certain amount of digital (fake) money, so you can trade on the market and see how it responds to your actions. It is the fastest way to grasp how the market works. It would be best if you still learned outside conversations with your broker. For example, suppose you are going to focus on a EUR/USD currency pair. In that case, it’s good to check out the economic events regarding The United States, Europe, and their current political relationship. These things influence the market a lot, and you will see that once you start following the news and analyzing charts.
Having a goal and finding a licenced brokerage and a broker are crucial steps to further determine what you need to do. You will find that a good trading plan and patience will be essential in trading if you aspire to become a successful trader. Good luck.