If you are firmly determined to make money in the Forex market and become a broker, this can be a fabulous idea with all the possibilities of becoming a successful reality. And, it is not a secret that there are numerous people who have become rich operating with currency pairs or with securities. But here comes the time to know a foundation that you must memorize to operate successfully in Forex:
Success only comes to those who know how to manage risk management and make rational and thoughtful decisions according to the circumstances surrounding the market environment.
Before knowing what is necessary to choose a broker, follow these steps:
- Set goals, and determine what conditions and services you are looking for in a broker.
- Contact several broker companies to see what services they offer, and also consider their experience and comments.
- Be interested in the history of the broker and its representations, and most importantly, check your members at the SIPC.
- Find out the size of the commissions per transaction. And be interested in possible discounts or discount program.
After performing these mandatory steps, carefully read the necessary documentation to open an account. If possible, hire a lawyer to understand all the terms and conditions. All oral statements must be reflected in writing, otherwise it will be invalid, remember that any carelessness in a contract, however small, may adversely affect the fulfillment of your rights.
When opening an account on the metatrader 4 trading platform, you should be clear about the answers to the following questions:
- What kind of accounts do you want to open.
- Who will manage the account.
- How much risk you are willing to assume, being reasonable, in your investment.
What you should know when investing in the Forex market
Every investor wishes, at a minimum, to keep those savings that have cost him so much time to obtain, and in the best case to increase his wealth from them. However, all, even the most perfect strategy, carry a certain risk, and that implies the possibility of losing their savings.
Do not hurry to open an account
Opening an account in the Forex market is a matter of minutes. But hurrying to open it is not worth it. Better take your time in the selection of the broker most appropriate to your needs, let yourself be advised by other more experienced traders, and if possible they do not have any kind of friendship relationship with you. Pay attention to transaction fees and maintenance costs. Low commissions are often tempting, but these are complemented by other complex payment systems that are executed by even internal movements in the account, which can ultimately lead to large losses for the trader.
Don’t be afraid to operate
If you have chosen to operate actively in forex trading, it is worth contacting the broker and negotiating your commissions to the fullest, since, even, a few cents, in global terms they can be in the long run, if we have a successful trading, a significant sum of money, which instead of staying in the hands of the broker, will stop in our pocket.
Because the broker’s income depends proportionally to the number of clients he works with, it is sometimes profitable for brokers to reduce their income by lowering their commissions, this is a good way to find a larger number of clients. And if, suddenly, a broker appears offering you market conditions that you do not even believe, ask the following questions:
What are the hidden costs behind these «ideal advantages»?
Where does the company get money, if it really meets the most advantageous market conditions?
If you are not able to answer these questions in a rational way, it is better to continue to search for our broker.