Foreign exchange, or forex for short, is a popular financial market that is common among businessmen as it helps them to generate more money by investing into a market. It is also the largest financial market in the entire world as multiple companies rely on forex to generate more income and keep their business afloat. However, forex traders must register for a license with a broker to be eligible to trade in the market. Every forex broker offers different services and provides different benefits to their traders. Here are the two brokers that beginner traders can approach to start trading.
Forex Time, or FXTM, is one of the best forex trading brokers beginner traders can approach to start their trading career. It is considered as the best all-rounder broker among its competitors as it provides almost everything to their traders; educational materials, demo accounts, latest MT softwares and many more. As a new trader, you will be provided with enough educational materials to teach you the basics of forex trading and learning how to observe the forex market. Additionally, you will be able to create a demo account to build up experience and confidence in trading before they are confident enough to open a live account with the same broker or another broker that suits their trading style.
Another broker that beginner traders can open an account in is eToro, a broker that specializes in copy trading. Copy trading is a popular trading style for beginner traders as they would copy an account to imitate their activities while they analyze the decision made and help them understand more about the market. Copied accounts will receive benefits as well as they will receive commissions based on how many accounts are copying them. Despite its ease of use, it has a few disadvantages. First of all, it has a high minimum deposit compared to other brokers. For example in eToro, traders must deposit at least USD1000 before they can begin trading while other brokers would have a significantly lower minimum deposit with some would require USD10 or none at all. Secondly, copy trading prevents traders from making changes of their own since their trading activities are tied to the accounts they are imitating. Finally, inexperienced copy traders might blindly follow an account that is unsuitable for their current financial situation. They might unknowingly copy an aggressive account that is trading in multiple markets and could cause them to lose all of their money within minutes.
As a forex trader, you must be prepared for any unexpected changes that can occur in the market as the forex market is known to be extremely volatile and can be influenced by any external factors like the coronavirus pandemic which has caused a massive economic regression. However, these external factors might also provide opportunities for underperforming markets to stand out more and attract more traders to invest into them. In order to gain as much profit from the market as possible, forex traders must gain experience and observe the market as much as possible to become a successful trader.
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