A lot of people usually start trading after reading news and information about the market or forex trading, but do they really know all the secrets behind it?
In this article we will list the 5 most important things that you should know about forex trading.
5 Things You Should Know About Forex Trading
Regarding forex trading, there are few things and tips nobody talks about. These include 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
As many of you might have read, from August 2018 there is a new maximum forex leverage available in forex traders. The new maximum leverage is 1:30.
But what many people don’t know 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 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 novice traders is the fact that a lot of brokers have full educational courses available and 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 also are not 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 and can answer to any question related to the trading platform usability.
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 feel that trader security is of the upmost importance. Therefore, one of the most essential things when choosing a broker is regulation and making sure that the selected broker is regulated.
Regulation is important because it means that a broker is registered and monitored by an official regulating authority.
The main role of regulating authorities is to ensure that brokers are following all financial rules and are not committing any fraudulent behaviour.
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.
The most well-known regulating authorities are the FCA, CFTC, FSA, ASIC, NFA and CySEC, if a broker has at least one of these regulations they are safe to use and trade with.
5- Demo Account
The last tip is that every trading platform offers a demo account for new traders to use. A demo account is great as it allows traders to test the broker’s trading platform as well as learning how to trade without risking real capital.
A demo account usually has from 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.
In conclusion, we would recommend that by following these 5 tips for forex trading, all traders will get more from their 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.
By following these 5 tips every trader can get the most out of their trading journey, whether you are a beginner or not.