The place to begin your trading career is at an online brokerage site. There are hundreds (or more) of these out there, and this makes picking the very best one for you seem outright daunting. Luckily, there are several things you can do to ease the stress of the process, some of which drastically narrow the field almost immediately. Here are a few simple tips to narrow your search down from thousands to just a couple.
1.) Pick a type of trade.
This is so simple, but people skip it all the time. What kind of trading will you be doing? Are you going to trade 30 second stock binary options, or focus on swing trading currencies in the Forex market? These are very different, and require different types of brokers. Focus on the two or three trades that you’ll be making, and then find a broker that meets your needs. You might eventually find that you need more than one broker in order to meet every need, but this is not something that is recommended right away.
2.) Read reviews.
Once you know what and how to trade your assets of choice, you need to know how other people that have used the brokers you are most interested in have felt about the products being offered. You’re obviously not going to have the same set of requirements from a broker as everyone else, but some things will be similar for you. If you find that there are common complaints about the features that you need, you’ll probably want to avoid this broker. This takes some time to go through, but luckily there are many sites out there that have consolidated independent reviews in order to help make your search easier.
3.) Try it out.
This one seems like it is more of an after the fact thing, but it doesn’t need to be. Many brokers allow you to create an account and use a demo trading account for completely free. This allows you to test the site out and use their software with no risk since demo accounts revolve around fake money. You will get the real time experience, complete with the actual software that you’ll be using if you eventually decide to use real cash. Some brokers, especially within the binary options industry, require that you make a minimum deposit before giving you access to their software. This isn’t a huge deal since you never need to actually make a trade if you do not wish to, but it is a minor inconvenience if you decided not to use the site. But, it’s better safe than sorry and the only thing that you lose out on is opportunity.
4.) Evaluate and move forward.
Trading is an ongoing process. You will develop as you go along and find that some concepts work better than others. You might even find that the trading that you’ve been doing is no longer the most profitable thing for you and that adaptations are necessary. Switching brokers might become necessary, and if this is the case, you need to be ready to do so. There are many methods of measuring your successes and failures, but profit/loss rates seem to be the most universally applicable since this takes into account the fact that you will be trading differing amounts of money over a long span of time. Your account will grow, and the faster the rate that you can get it to increase by, the better off you will be. Even a difference of 1 or 2 percent equals thousands of dollars or more per year in many cases.