Going Broker?

With the pandemic that hit, and the markets that failed, more and more people are taking their investments into their own hands, scared of what the future holds, turning to brokers. Sitting at home during a lock down also gives you more time to think about what it is you want out of life and what you need to achieve that dream. This is where the importance of knowing what/who a broker is comes into play. A broker provides access to trading on the markets for households that historically would only be available to financial institutions with deep pockets, in turn keeping your dreams in your pocket.

A forex broker facilitates the trading of forex, commodities, indices and even shares on various trading platforms, the more popular being MetaTrader 4 or 5, in the form of contract-for-differences (CFDs). These CFDs are made available by the broker to the household by the broker exposing themselves in a future’s contract on the exchange and splitting the future into smaller contracts. This provides access to affordable trading by households without having to comply with the strict requirements needed to trade on an exchange.

When choosing a forex broker there are a few important things to keep in mind so that you do not limit your trading and ensure you remove frustrations and risks that are not required when working towards building financial stability. One of the most important requirements is that your forex broker has to be regulated. Regulation enforces many standards that keep the broker, you and your funds safe as well as ensure that your best interests are kept as top priority. Additionally a local presence is always beneficial as you can always reach out to people that know your market and understand your culture.

Now that you know a little bit more about your broker that you decided upon, the big question is how do you start trading and what does it take to make a success out of your trading. First thing is to open a trading account. Feel free to start with a demo account but always keep in mind that trading with a demo account, fake money, does not trade the same as a live account, actual money. With a live account you and your emotions are invested in the trading and this will reflect in your trading, no matter how much demo account you traded. Build a trading plan, trade small trades, manage your risk/reward ratio and use safety measures to ensure success in your trading.

Having chosen a good broker and having built a unique trading strategy, with a good mentor guiding you, always remember that anything good in life takes time and through patience and hard work you can achieve success. If you do not have a broker or a mentor or looking to upgrade, take the time to reach out to me and I will assist in getting you on the right path on your journey.