If you plan to make quick money with forex trading, then you need to be aware of certain facts before you start trading Forex. The world of Forex is a whole new dimension of complex financial transactions. Hundreds of financial myths are considered as a part of this industry. It requires you to be extra smart in order to survive. But don’t worry, once you become familiar with some of the basics of Forex trading, everything else starts working in favor of you. Let us mention some important points that may help you to figure out how to start Forex trading from home.
Listed below are some points you may find useful.
Look If Your Broker Is Regulated Or Not?
The first thing you may come across prior to trading Forex is the selection of a broker to open a Forex trading account. You may well be aware of the fact that you need to deposit funds in your account. Here comes the important bit - the security of your funds. If a broker is regulated, this means it follows rules and regulations in place and most likely holds clients funds in segregated bank accounts. This is how you can rest assured that your money is protected. On the other hand, non-regulated brokers do not have the same type of regulatory oversight which means your investment may be at a greater risk and in most cases you can't file your case against the broker in a consumer court.
Select a Broker That Suits Your Trading Requirements
After filtering out a list of regulated brokers, you need to check what broker specifically suits your trading needs. The market is dominated by two types of brokers at present. One is known as market makers and the other one is called an ECN broker. They both work differently. Market maker brokers make money by betting against trader’s success and that is why they may intervene against their traders . Due to their intervention, trade execution may be delayed and traders can lose trading opportunities. On the other hand, ECN brokers do not intervene orders placed by traders, instead, they pass the trading orders directly to the interbank market and make a commission on the transactions. This is the reason why most traders prefer opening an account with ECN and not with market makers as there is no conflict of interest.
Check Commission, Spreads and Leverage Offered by Your Perspective Broker
Once you are done selecting a broker using filters such as regulation and type of a broker, you may also wish to know what percentage of commission you may be asked to pay. You might also be interested to know what leverage your broker offers. A good Forex broker typically offers both fixed and floating spreads at competitive prices. A broker that offers you a generous leverage but doesn’t offer tight spreads may not always be that advantageous if you are using scalping as a trading strategy for example.
Locate Brokers Offering Demo Accounts
Demo accounts are offered to traders by almost all brokers to let them test the platform and practice their trading strategies and money management tools without risking their real investment. The demo can give you an indication of how the platform works, what pairs the broker offers in addition to what commissions and spreads the broker charges.
Check the Efficiency of Deposit and Withdrawal Process Of Your Broker
One indication of the broker's efficiency and service is always the process of withdrawals and deposits. Most traders are always concerned about the fund's withdrawals which is why might always be advised to check what banks and payment methods the broker uses to facilitate the client's withdrawals. A good and reliable broker typically only uses Tier 1 banks to hold their client funds and expedites withdrawals through merchant payment services like Skrill and Netteller. A lack bank options and funding methods may indicate that the broker does not have sufficient options to handle deposits/withdrawals which may impact the withdrawal process.
Evaluate Customer Services of Your Broker
Trading Forex from home becomes even easier when you receive an excellent customer support from your broker. Good Forex brokers always ensure that a timely customer service is of utmost importance to service a client. This means you can contact your broker via different mediums including telephone, email and live chat. See if your broker is quick to respond. If it is, then that is a good indication you are working with a professional broker who values your business and will provide good service to support your trading endeavor.
Starting Forex trading from home isn't hard provided that you follow instructions carefully. However, no matter how good your broker is, the success of your trading career always falls on your skills. Try learning the basics of Forex trading and how to master the art of analyzing the markets. In our next articles and videos, we will showcase some of the tools and secrets the experts use in order to become successful and ultimately gain financial freedom.