You can easily find a lot of advertisements for brokers on the Internet. Commonly they are looking for a target audience of potential traders and offer exchange transactions or investments in exchange assets.
However, before registering an account with a broker and making your first deposit, we recommend you to find out what is needed for such kinds of activity and what risks and difficulties you may expect while trading.
Remember the risks
If you want to engage in speculative transactions in the currency or stock exchange, you should carefully consider your decision. Financial transactions with exchange-traded assets or investments in exchange-traded assets are supposed to be high-risk investments. There always will be a risk of losing capital, and this risk will be quite high.
It means that it is strongly recommended to invest in exchange operations only those amounts of money that you can theoretically lose. If you do not have such amounts, and you are looking for a source of basic income on the exchange, you better not engage in exchange operations.
Perhaps trading is not for you and you should find more suitable perspectives for investing or making money.
Choose the right broker
If you have taken into account the pros and cons and have collected capital for risky trades, you need to find a broker to act as your intermediary.
The fact is that you will not be able to conclude transactions on your own because it is almost impossible for traders to become independent participants in the exchange market. It requires a lot of capital, at least.
Therefore, you need an intermediary company that will allow you to enter into speculative trades with almost any amount, providing signals from the exchange and executing your orders.
There are a lot of brokerage companies on the Internet. Not all companies operate with integrity, good client service, and within the local law. That is why it is necessary to take your time to find a reliable intermediary with favorable terms of cooperation. Do not rush to cooperate with the first broker you meet.
How to choose a broker
There are several main criteria that will help you to choose an intermediary company for trading on the exchange.
- Check the broker’s activities from a legal point of view. The company must have a real address, the necessary licenses and permits must be regulated by the regulatory authorities in the country of registration. Check all the info and recheck it in authoritative sources of information.
- Make sure the broker is not interested in your money. A reliable broker delivers reliable signals from the exchange, and also quickly executes traders’ orders. Beware of scammers who disguise themselves as brokers.
- The terms of cooperation should be beneficial for you, taking into account your trading strategy and your capital. First of all, we are talking about the commissions (spreads) that the broker charges mostly for each transaction. There may also be commissions for depositing or withdrawing funds.
- The broker must provide a set of functional and easy-to-use tools for comfortable trading, for analyzing and monitoring the market. You should check them before the deposit.
You can choose a brokerage company by yourself analyzing information published on official broker’s websites or specialized forums. Additional help will be provided by specialized informative resources with a rating of brokers and trader’s feedback. You can find such a website here: https://tradersunion.com/.
Learn and improve your skills
Speculative trading on the stock exchange or investment in the stock exchange is believed to be a sphere that requires not only your motivation and your money but experience and deep knowledge. It’s not enough just to read a few articles to become a trader.
According to statistics, most novice traders or investors in high-yield assets lose their investments.
An exchange is a highly competitive market. Your potential income will be formed due to the losses of other market participants. In other words, you have to outplay more experienced traders to make money. It is really hard to do tasks.
If you do not have at least basic knowledge in the field of the exchange market, analytics, finance, and risk management, and you do not know how to manage capital, you will most likely lose all your investments quickly.
Also, be prepared to spend time and energy trading and observing the market on a daily basis. You cannot turn trading into passive income. Trading cannot be a source of quick income. You will have to be patient, learn, and practice a lot.
We recommend finding a broker who provides a demo account for traders. With its help, you will not only master the trading software but also understand how the market works. If you decide to make your first deposit, start with small amounts that you can afford to lose without affecting your personal budget.
Tools and sources of information
First, use a variety of tools available to collect and analyze market information. Use fundamental and technical analysis strategies and choose the most appropriate approach for your skills.
Secondly, collect information from open sources – from media pages, blogs, thematic sites. Read reviews and analytical articles written by market experts and experienced traders. Despite the fact that someone else’s advice cannot be the guarantor of a successful transaction, you can find useful information in those materials.
Trading or risky investments in exchange-traded assets is an area of financial activity that requires money, experience, knowledge, training, and also the willingness to work hard on an everyday basis.
In addition, you should find a reliable broker with minimal commissions who will provide access to a modern trading platform, demo account, a set of information for fundamental and technical analysis.
If you are looking for a magical way to get rich without risk and effort, then the exchange is not the one that suits you. If someone promises you such a ‘magic’ income, most likely you are in front of a scammer or a person who is interested in your capital.