The Forex used to be one of the most exclusive financial markets in the world. If you weren’t a member of an international investment firm or part of your country’s central bank, then you wouldn’t be able to trade.
Thankfully, the times have changed and the Forex is now the largest market of its kind in the world mostly due to its free for all nature where anyone anywhere can become a trader within a few minutes. With this newfound quality, the problem became not how to get into the market, but with whom. Instead of having to dedicate so much effort into finding a way to get involved, we now have the privilege of being able to choose how we get involved.
By doing a quick search online, you can find hundreds of brokers all competing for your attention and trying to get you to open an account with them. While having so many options is no doubt a benefit, choosing which one to trust with your investment and mold you in becoming a successful trader is a problem by itself and is the first big decision a new trader will have to face.
To put yourself in the best position to gain both firsthand trading experience and profits, make sure you start your Forex career by choosing the best broker for you. Here are 3 questions to ask yourself before you make the all important decision.
How much money am I willing to invest?
To get a trading account, you will first have to make an initial deposit. If you feel you aren’t ready to risk $1,000 right away, don’t worry, there are several brokers which allow you to trade with a smaller amount. Look for those who offer mini or micro accounts which let you trade at your own pace until you gain enough confidence to deposit a larger investment.
What’s my strategy?
Just like traders, not all brokers are the same. Some deliver a variety of services that caters towards people who want to be flexible, while others prefer to focus on a specific aspect of the market to give specialized tools to traders who have a very specific goal. Depending on your trading style and your own unique strategy, there may be a broker that can help you more in reaching your goals.
But if you’re still in the process of experimenting, you’ll be better off choosing a broker that will allow you to try out a wide variety of currency pairs, technical indicators, PAMM systems, and others.
What skills do I want to improve on?
Brokers nowadays don’t just offer trading capabilities, but also a wealth of knowledge that you can use to educate yourself. Browse through a broker’s website and see if they have a resource center, a learning library, or even a blog that features articles that cover basic and advanced concepts about how the Forex works. If you want to learn more about how the news affects currencies, choose a broker that has a built in news section. If you want to know more about reading charts, choose one that has a variety of technical indicators.