A lot of people usually start trading after reading about the market or forex trading, but do they really know all the secrets behind it?
In this article we’ll list the 5 most important things that you need to know about forex trading.
These are the key points that every successful trader follows.
Let’s take a look!
5 Things You Should Know About Forex Trading
Regarding forex trading, there are few tips that beginners don’t really know about.
However, it is all information that’s key to making the most out of your forex trading.
This includes tips about forex trading strategies, specific trading platforms or even about a general regulation.
Here you can find the 5 most important tips and things to know:
- The new forex leverage regulation of 1:30 is ONLY for European clients.
- A lot of brokers offer an educational service and forex signals FOR FREE.
- Every new client has a personal market account manager to help with trading advice.
- Make sure that you use a regulated broker to protect against fraudulent brokers and scams.
- Most trading platform offers a trading demo account with $10.000 of virtual funds available so novice traders can learn how to trade.
Let’s go through each point in further detail:
1- New Forex Trading Leverage
In August 2018 a new law came into force that changed the maximum forex leverage amount for forex traders. The new maximum leverage is 1:30.
The European Securities and Market Authorities (ESMA) introduced the law that capped the maximum leverage allowed. This has affected all European online brokers
What many people don’t know though is that this leverage is just for European traders!
All other traders from the rest of the world can still continue to trade with a leverage of up to 1:400 (it still depends on the broker).
So if you are not from Europe, don’t worry, the situation hasn’t changed.
2- Education & Signals For Free
A lot of people don’t start trading because they are not sure how it really works.
What might reassure you if you’re new to trading is the fact that there are free educational tools available.
Many brokers have full educational courses available and can also offer free forex trading signals.
One of the best educational courses is offered by BDSwiss. They also have free webinars, live trading and forex signals. Read about the BDSwiss review here.
If you read about the broker and complete a free registration, you can understand more about their education offer and learn more about forex trading.
3- Personal Account Manager
What a lot of people aren’t aware of is that when signing up with a forex broker, they can have full assistance from their own personal account manager.
A personal account manager can suggest trading strategies to beginners generally. They can also answer any questions related to the trading platform usability.
This would be ideal for instance if you wanted to ask about which analysis tools were available. They would be able to suggest and assist you.
The personal account manager can be reached via live-chat, email and by phone to provide support for general questions.
4- Regulated Broker
We have explained this concept many times on the website as we believe that trader security is very important.
Therefore, one of the most essential things when choosing a broker is regulation. When you find a broker that you like, you must make sure that the selected broker is regulated.
Regulation is important because it means that a broker is registered to and monitored by an official regulating authority.
The main role of regulating authorities is to ensure that brokers following strict financial rules that are put in place to protect forex traders. They also check that brokers are not committing any fraud.
This helps to protect traders from unregulated brokers who wish to commit forex scams and fraud.
All the regulated brokers will have listed on their homepage which regulatory authorities they are signed up with.
We’d also recommend that you check the authorities official website where they have a list of authorized brokers written. They also feature a list of illegal one and publish scam alerts.
The most well-known regulating authorities are the FCA (Financial Conduct Authority), CFTC, ASIC, NFA and CySEC. If a broker has at least one of these regulations they are safe to use and trade with.
All the brokers featured on our site are fully regulated and secure to open an account with.
5- Demo Account
The last tip we want to share is that every trading platform offers a free demo account for new traders to use.
A demo account is great as it allows you to test the broker’s trading platform and to see if you like the setup or not.
Besides this you can also learn how to trade without risking real money. That’s because all demo accounts come with a set amount of virtual funds for you to spend on test trades.
Depending on the broker, a demo account usually has between $10.000 to $100.000 of virtual funds for traders to practise trading with, which is more than enough for test trades.
We would highly recommend opening a free demo account as it really is a great way to try out a forex broker and allows you the opportunity to test your strategies.
If you decide that you would like to start trading forex with a real trading account, you can easily switch to the live account. Most brokers have a switch button feature which lets you switch between both platform types.
In conclusion, we would recommend that by following these 5 tips for forex trading, you will get more from your trading experience.
Educational webinars and personal account managers are all great tools to use when developing trading skills, especially when they are free to use.
Demo accounts are also key if you’re still looking for your ideal broker. They are a great way to test a platform for free, without the obligation to deposit money.
By following these 5 tips every trader can get the most out of their trading journey, whether you are a beginner or not.