If you are firmly committed to making money in the Forex market and becoming 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 many people who have become rich trading with currency pairs or securities. But here comes the time to know a foundation you must memorize to operate successfully in Forex: Success only reaches 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, perform the following steps:
- Set goals, and determine what conditions and services are what you are looking for in a broker.
- Contact several brokers, to see what services they offer, and also take into account their experience and their comments.
- Be interested in the history of the broker and its representations, and most importantly, check its members in the SIPC.
- Find out the size of the commissions per transaction. And be interested in the possible discounts or discount program.
After completing 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 negligence 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 this reasonable, in your investment.
What you should know when investing in the Forex market
Every investor wants, at least, to conserve the savings that it has cost so much time to achieve, and in the best case increase their wealth from them. However, all, even the most perfect strategy, carry a certain risk, and that implies the possibility of losing your savings.
Do not rush to open an account
Opening an account in the Forex market is a matter of minutes. But hurry to open it is not worth it. Better take your time in selecting the broker that best suits your needs, let yourself be advised by other more experienced traders, and if possible not have any kind of friendly 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 internal movements in the account, which can ultimately lead to great losses for the trader.
Do not be afraid to operate
If you have opted to actively trade in forex , it is worthwhile to contact the broker and negotiate your commissions as much as possible, since even a few cents, in global terms, may result in the long run, if we have a successful trading, an important sum of money, which instead of remaining in the hands of the broker, will stop in our pocket. Because the broker’s income depends proportionally on the number of clients with whom he works, brokers sometimes find it profitable to reduce their income by decreasing their commissions, this is a good way to find a larger number of clients. And if, suddenly, a broker appears offering you some market conditions that you do not even believe yourself, ask him the following questions:
- What are the hidden costs behind these “ideal advantages”?
- Where does the company get money from, if it really meets the most advantageous market conditions?