Trading tips for a Novice Trader – Choosing the Best Forex Brokerage Account
Forex trading industry is one of the fastest growing industries as it has evolved to be one of the most effective and lucrative ways of making money. Are you a beginner who is looking forward to take a plunge into forex trading? If you ask an experienced trader, he will tell you that selecting a proper forex trading account is as necessary as trading the forex market. You don’t have any trading houses or a central authority for the forex market; rather the trades are done with the help of brokers who use a trading account.
Choosing a forex trading account can be challenging as you may get confused in choosing the good from the bad. In order to assist beginners to transition smoothly into real-life forex trading, this guide will help you select an appropriate forex trading account.
#1: Watch out for features that are beginner-friendly
There’s no doubt about the fact that forex market can be demanding for all those who are novices in the industry. When choosing such an account, here are the features you should look for:
- Copy-trading: New traders who don’t understand the nuances of forex trading are allowed to mirror the trader of an experienced trader and this is called copy-trading. Hence, make sure the account has a form of mirror-trading feature in its platform.
- Demo features: Does your forex trading account have a demo account feature? With this feature, you can practice forex trading with virtual money to boost confidence. This way you can discover mistakes which could have costed you several hundred dollars.
#2: Select the right type of account
There are multiple forex trading accounts to choose from – while some cater to specific types of traders, there are others that are tailored towards definite trading strategies. Among the several accounts, the most popular are standard accounts, micro accounts, mini accounts and managed accounts. Standard accounts are touted to be the most common as the minimum balance requirement ranges between $1000 and $5000.
#3: Account management should be easy and effortless
Few forex trading accounts come with complex account management techniques that can actually confuse newbie traders. Therefore, make sure you look for an account that shows you the total amount that you have in your live account, the amount you’ve made within a given period and the amount you can withdraw.
#4: Licensed brokerage accounts should only be chosen
As we’ve already mentioned that forex trading is never managed centrally, you need to know that there are other bodies that supervise and monitor all forex brokers. Based on your location, you need to register with a forex trading account that is handled by a licensed broker. For instance, National Futures Association registers American forex brokers.
#5: Value addition is a feature to look for
Any forex trader can launch barebones trading platform and promote it as the best forex trading account. Did you know about another vital feature called real time charts? Well, yes, make sure you watch out for market indicators, latest news among the other trading account features.