5 questions to ask before choosing a broker and starting to trade

The day a person becomes a trader is a life-changing event. With the first dollar earned on a demo account, traders change their minds from thinking in terms of exchange rates to analyzing spreads, trend lines, and returns. If you don’t want to spoil the first day by making foolish mistakes and misunderstandings, you should choose the right broker beforehand. It can be easy if you ask right questions first.

How to make a successful start in Forex trading?

Not every broker gives starting traders a crash course or a set of lectures on how to start. Even if they exist, most traders start with opening a demo account and by trial and error finding the most successful trading strategies. Only after that, they realize that trading platforms matter the same way as legitimacy and capabilities of a broker. Choosing to trade with http://www.fxpro.co.uk/trading/platforms/mt5/desktop, they realize that newer does not mean easier or better. If you don’t want to be disappointed, you should consider all necessary factors before starting a trade. This is simple if traders ask right questions first:

1. Which type of trader you are? Do you want to make profits on any foreign exchange market fluctuation or whether you want to hold guaranteed profitable position depends on your personality and never determines how well will you trade;
2. Which platform do you want to use? The most popular trading platforms are Metatrader 4 and its newer version, Metatrader 5. Although the second one provides opportunities to trade with a large variety of financial instruments, the first one is much easier;
3. Does this broker fit your trading needs: Brokers differ on how many trading instruments they offer and which platforms they give access to. If traders don’t consider these factors, they may get not what they’ve expected at all;
4. Which instruments do you want to trade? Trading stocks, bonds or futures requires much more knowledge of corporate finance and macroeconomics than trading foreign currencies. The more instruments you want to employ, the more background knowledge you should get;
5. Is this broker a legal entity? Brokers who are not properly registered hold much higher risk (even though commissions and fees might be lower). If a broker provides no guarantee of compliance with rules, traders cannot be sure that they will get their deposit back.

Everybody can become a trader

Trading is not a job of highly-skilled analysts and scientists. 4-class math and knowledge of basic macroeconomic principles are enough for success. What matters is stress-resistance and the art of diversification, ability to hold such portfolio which can give you a guaranteed payout. The only thing that you should not do is relying on a wrong broker as your profit might turn to zero with all its commissions and unexpected turndowns of the site.