If you want to become a Forex trader, the first thing to check off your list is finding a certified and licenced brokerage and the same goes for your broker who you will be working with. This is someone you will be working with the most, and they should be there to help navigate your trading path, and give you a piece of advice whenever you need it.
Despite various opinions, opening an account is the easiest part if you want to become a trader. What needs to be done carefully is selecting the two we mentioned above, because finding a good Forex broker will help you even if you have experience. After all, a forex broker is an expert in the field and doesn’t have the title for anything.
Hearing various stories about money disappearing can become an anxious task looking for someone you can trust. Many people had such a bad experience they don’t want to have anything with Forex ever. On the other hand, many satisfied traders continue to make a steady profit. Why is that? Because they took the time to do some research about everything. Scammed people usually act impulsively, and they listen to anyone who calls them and says they should invest their money right now. That is because you’ve heard from someone Forex is excellent, or you saw an ad, so your impulsive side thought it was enough. We aren’t saying you need to spend days browsing the internet, but certified brokerage can be found via websites that act as regulators, meaning they manage who is on the “good” list. Depending on where you live, there will be a regulator where you can see a list of regulated brokerages, and if the company you are interested in isn’t on it, you shouldn’t be working with them. Find another that is. It is that simple.
After that, it’s time to find a certified broker, and you can achieve that by googling forex brokers, or rather a specific name if you’ve already talked with one. Start with obtaining information on the broker, searching on the internet. If he appears on LinkedIn, broker reviews (with good comments), and has multiple platforms to contact him, you are good to go. Even if you are not fond of it, you need a third-party if you want to trade Forex, and soon enough you will notice how much easier everything is when you have an expert by your side.
Once you are sure your broker of choice has a certificate and a licence, you can continue opening a trading account. Every broker that wants to make a successful trader out of their client will advise you to go slow, not invest too much, experiment (with a small amount of money). He will work with you on your trading plan, so that’s why you should have a specific goal in mind, or think about it. Why do you want to trade? What do you need the money for? This is how you will stay consistent and severe about your tradings. Lastly, your broker will offer you a demo account if you are a complete beginner, and that is okay. It will be easier to grasp how the market functions, and you will trade with “fake” money until you are ready to start live trading. Once you start trading with your own money, listening to the expert’s advice and learning on the side will be the key to your success. Remember to stay patient, since this should be a long-term investment, not gambling (because Forex isn’t that). Lastly, don’t be afraid to ask your broker anything you don’t understand, even if he already explained it. Better safe than sorry.