The Forex market is highly unpredictable; hence, earning regular profit becomes difficult most of the time. And if you are a newbie trader, making some profit is more troublesome. However, choosing the right broker may ease the difficulty level for anyone. Again, finding the top broker is a hefty task too. But if you choose a trusted Forex broker after analyzing different top Forex brokers review, your trading life will be a lot easier. Further, trading with regulated Forex brokers is also one of the rules of thumb for newbies. Apart these, some other factors to look at if you are starting your Forex trading career.
Read to get a brief guide about choosing regulated Forex brokers upon looking at the top Forex brokers review online from multiple sources.
Things to Remember if you are a Beginner
Although the Forex market is huge and you need a lot of practice, time, and strategies to master Forex trading. With continuous trading, you can become a pro gradually. There are a few things for the traders to keep in mind.
Choose the Right Broker
Whether you are a new trader or an experienced one, the first thing you should remember is that there is no alternative to using a regulated and trusted Forex broker. The broker should give you all the benefits allowed by the regulation. Nevertheless, as a new trader, you may not know which broker is good! In that case, it is recommended that you find the top Forex brokers review and choose a broker upon looking at the reviews.
Understand the Forex Market
Take the time to become familiar with different types of pairs and learn how their prices fluctuate during certain events such as economic reports or political happenings.
Make a Strategy and Stick to it
When setting up your trade strategy, decide what is important: entry price, stop loss, target, etc.? Having a set of rules gives you less margin for error, thus increasing your odds of success.
Predict the Market
Let’s say you are planning on entering a long position at market price. You can either wait for the pair to touch your entry-level or alternatively set an alert that notifies you when it reaches this point. The more tools at your disposal, the better positioned you will be to anticipate opportunities and react accordingly.
Know when to Halt your Trading
No matter how confident you are about Forex trading, as the Forex market is volatile, there will always be times when nothing goes right. Don’t make the mistake of hanging on until all hope is lost – there’s no shame in cutting your losses short and stepping away from the screen if things aren’t working out as planned. So, it is necessary to take the right decision at the right moment and understand when to stop the trading and exit the market.
Refrain from using Emotions
You should always try to be objective when planning your next step in the trade. If it helps, don’t look at the chart until you have formulated a strategy that you are confident in, and only then plot the points on the chart. Avoid trading with emotions and stick to your created trading strategy even if you are losing.
The right broker can work on fulfilling all the requirements. So, let’s get to know the features a newbie FX trader should look at when selecting the broker.
5 Features a Newbie Should Consider to Select the Best Forex Broker
Although, you need plenty of research to sort out the best broker for your trading. But the following are the top five features you should look at first.
The first thing to consider when picking a Forex broker is regulatory compliance. The majority of Forex brokers are required by law to be registered with the regulatory body, depending on their location. The regulated broker needs to follow some rules that can give safety to your fund.
The vast majority of Forex brokers provide traders different account features such as access to leverage and margin, commission and spread, etc. Other account features you should look at are initial deposit and ease of deposit & withdrawal.
Offered Currency Pairs
Most of the big brokers offer trading access to all major currencies, while some brokers offer one or two exotic currencies at very competitive spreads. So, make sure you know the list of the currency pairs offered by your desired broker.
The best online Forex trading platforms such as MetaTrader 4 or MetaTrader 5 are easy-to-use, quick, and straightforward. However, finding the right one to pick comes down to a traders’ personal preference. So, a trade should find a trading platform according the measured requirements.
The top Forex brokers usually provide their traders with 24/7 phone, email, and live chat support. Some even offer services such as educational seminars or custom software to help their clients’ trading performance. So, know your broker’s customer service type and understand how efficient they are.
Whether you are a new trader or an expert, you should always look at things we have mentioned throughout the article. However, you can measure all these criteria at once if you check top Forex brokers review of a specific broker.