Forex brokers and exchange platforms like FXO and Forex.com can be a hassle, but with a little bit of preparation and experience, they can be downright fun.
Here are eight tips to help you make it happen.
Choose your trading partners wisely.
Forex trading partners vary widely in their fees, but the ones that you need to be paying attention to are the ones who you can actually interact with and build relationships with.
This means that you’ll want to set your prices and fees based on the market conditions that you’re in, so you can gauge whether or not you can trust the people who are making money from your trading.
For instance, if the market is looking like it’s going to be in a bear market, you might want to look to those who are trading on a daily basis.
If you have some other market discipline that you can’t quite control, you’ll likely want to make your pricing and fees higher.
Choose the right platform.
A broker will usually ask you to provide a deposit or deposit-free account number.
If it’s a cash-only account, you should probably choose one that has a high minimum deposit, such as $10.
The more important thing is to make sure that you’ve got a good relationship with your broker before making your first deposit.
Be sure to set aside enough time to do all the trading.
If your first two weeks of trading is going to involve you doing a lot of trading, you may want to try to trade more frequently than that.
This will also allow you to see if you can handle a higher-than-usual trading volume.
Start your trading account with a balance.
Most brokerages require a minimum deposit to set-up a trading account, but it’s more difficult to set a minimum balance if you have no money on hand.
In most cases, it’s best to put $100 to $200 into a trading accounts account, with a minimum of $1,000 or $2,000 for cash deposits.
Don’t forget about cash-out rules.
You might be tempted to just keep all your trading funds in a bank account.
This is great if you’re trading from home or work, but be aware that you should make sure to have enough cash to cover any unforeseen expenses that might arise.
The best way to get a hold of your cash is to contact a bank or other financial institution in your home country, but if you’ve been living in a country with an international financial institution, you can always use a credit card to pay for any overdrafts.
If that’s not an option, you could set up an account with your bank directly or with an online brokerage account.
Make sure to get enough sleep.
In the United States, if you trade with an FXO or Forex broker in the morning, you’re more likely to receive the best prices.
But if you want to trade at night, you will be more likely be better off getting up early, as you will receive more accurate information and a higher probability of receiving the best price.
Set aside time to research and learn about forex trading.
Many brokers charge an upfront fee for starting your account.
It varies by platform, but you should definitely set aside time and money to research all the pros and cons of each broker and how they’ll work for you.
If this is the first time you’ve started your trading career, you want your broker to be a little more familiar with your trading habits.
Choose a trading partner that you trust.
If a broker is offering you a low-fee brokerage account, that’s probably the best option.
If the broker offers you a high-fee account, however, you need the broker to have a relationship with you.
So it’s worth making sure that they have a solid relationship with their customers.