5 Things you Need Before Opening your First Live Forex Account
Forex trading is an appealing activity that presents the opportunity to make a profit, even if you possess limited experience. The most important thing is to arm yourself with enough knowledge and understanding of the industry, to help you become an accomplished, long-term trader.
If you are you interested in trading forex but want to know more before opening your first live account, , follow this five-step guide to find out more.
Find a Reputable Forex Broker
There are endless forex brokers to choose from, which is why it’s essential that you find one with a solid reputation, a state-of-the-art trading system and a sterling customer support team. Your selected broker must also offer a wide selection of trading tools to provide you with the most comprehensive trading opportunities possible. Finally, it is vital that they are fully licensed and regulated.
Set up a Demo Forex Account
The next step is to open a demo account. Use this opportunity to learn the ins and outs of the trading platform, from where all the features are located right down to how to close a trade. You should also use this as a chance to get to know your chosen forex broker and leverage their customer support. This will give you a good impression of the type of support they will offer once you’ve opened a live account.
Study the Markets
Before you begin forex trading it is critical that you understand the markets thoroughly and learn how to perform market analysis, whether your preferred method of analysis is fundamental or technical analysis, or a combination of the two.
The type of analysis you perform usually depends on what type of trading you intend to perform. For example, if you are a long-term trader it’s recommended to primarily perform fundamental analysis, however if you are a day trader looking for short-term trends, it’s advised to primarily perform technical analysis as this is a very flexible and much faster form of analysis.
Choose your Trading Account
Most forex brokers offer a selection of trading accounts, from micro accounts to managed accounts. For this reason it’s important to do your research and open an account that matches your specific investment requirements. Factors such as minimum deposit requirement and currency pair options will influence which forex trading account you decide to open.
Create a Trading Plan
You cannot expect trading success without a trading plan as a trading plan is what enables you to become a consistently profitable trader. Establish factors such as when you intend to trade, what sort of trading approach you plan to adopt and what your expectations are of yourself as a trader. From here, you will be able to establish an effective entry and exit strategy that you follow without question.