When selecting a forex broker, use caution
When it comes time to replace your car, you would never think to buy a new one without first giving it a test drive. And you'd never buy clothes and leave the store without trying them on when you're shopping for them.
It's in our nature to investigate things to discover whether they're really what we want or if they meet our specific requirements. So why would you ever register with a new broker and start investing your money without giving it a second thought?
All reputable Forex trading platforms offer demonstration accounts for a reason: they let you try out all the features, including as charting, analytical tools, and standards of service, for nothing. You may act on the same financial market news as the experts without giving up a single penny of your hard-earned cash.
Sensible people will sign up for a few demo accounts to make sure they are a good fit. In the same way that you probably won't buy the first car you test drive but rather try out a couple. Like many business sectors, not all brokers are reputable or even fully legitimate. You can increase your confidence that your broker is honest by looking for the ideal fit for you and practising on a demo account.
It's vital to have an understanding of your trading objectives before you start, as well as the tactics and marketplaces you plan to use. The majority of the larger, reputable brokers offer a wide range of individual stocks, trading opportunities on indexes like the Dow Jones or FTSE 100, commodities like gold, silver, and oil, and currency trading, also known as FOREX.
To avoid investing with a broker who gives you a tonne of alternatives that you'll probably never use, make sure they offer the services you need. Don't invest in a platform that focuses on binaries if you're never going to experiment with them.
You can only truly determine if a broker is ideal for you by trying out its demo version. What happens if it lacks one? Just like you would if the vehicle seller wouldn't allow you have a test drive, turn around and leave.
Selecting demo accounts has the additional advantage that you can test out various methods using play money. You can test the platform and try out some strategies without having to risk any money by using the real-time charts, the same technical analysis tools, and margins as you would with a real money account.
To learn how spreading your risk, even if it's only a play money risk, might be the best course of action in the long run, you might develop a dummy portfolio instead of simply trying one transaction by investing in trades across a variety of currency pairings, stocks, and commodities.
Use your demo account to become familiar with the foundations of technical analysis. Simple moving averages and the relative strength index are two trading techniques that are simpler to understand, but you can experiment with any of them to see if utilising one, or better yet, a mix of them, can improve your odds of executing a successful trade.
You might discover that after a while of carefree, non-cash trading, you have the confidence to switch to a real-money account and see if you can convert your initial wins into a real profit.
But take note: a demo account cannot adequately prepare you for the psychology of trading. How do we interpret this? So, your behaviour during transactions when your real money is on the line can differ from how you behaved when using pretend money.
For instance, you must learn to avoid chasing your losses and to let winning transactions "run," which means to avoid taking profits too soon. Additionally, it entails having the ability to handle a losing trade and realising that you might lose more transactions than you win. The secret is that you'll always come out ahead overall if your winning transactions generate more revenue than your lost ones.
A lost trade or a string of losing deals should not cause you to lose your cool. You must realise that this is a long-term commitment. And keep in mind that you can still make money even if the financial market declines.
Promotions have not been mentioned. Many brokers will provide you with incentives to register and make a deposit of funds. You can start to gauge the sincerity or value of these promos by spending some time on their demo account. Avoid falling for the purportedly "greatest offer" out there by doing your study and determining whether or not what is being promised is even possible.
Overall, you'll be in good hands if you stick with well-known trading platforms like ETX Capital or IG Index because you'll have access to as much time as you need on a sample account to make sure you know what you're getting into and that the platform is as dependable and fair as it sounds.
Source : https://forexnews.pro/