How to ensure successful trading in Forex?

 

To be successful as a forex trader, you must first train on identifying the perfect trading opportunities and executing your trades on a trading platform. The best way to start trading is to learn the fundamentals of trading and then practice executing your strategy on a demo account. Once you can trade consistently on a demo account, you can open a real account and start trading real money. Trading is an activity that requires constant practice to be successful.

 

When starting, a trader should open a demo trading account with a trusted broker to test their services and familiarise themselves with their chosen platform. One of the most popular trading platforms is the MetaTrader 4 platform, which many brokers offer and is widely used. Opening a demo account will allow the trader to get familiar with the trading platform and the broker’s services. It will also make it easier for the trader to seamlessly execute their trading strategy.   

 

 

First: Choose the right broker

 

Choosing the appropriate brokerage firm depends on several conditions:

 

1. It is necessary to choose a licensed broker because this gives you insurance on your trading capital against any fraud or financial problems that may affect the broker. The best regulators offer compensation to traders in case a broker encounters financial problems. 

 

The most respected licenses are:

- The UK license issued by the Financial Conduct Authority (FCA)

- The Cyprus license issued by the Cyprus Securities and Exchange Commission (CYSEC). 

 

Authorities in other countries issue different licenses in other countries, but these two offer deposit compensation to traders if a broker files for bankruptcy. 

 

Companies licensed by strict regulators will not take unnecessary risks that could plunge them into financial difficulties since they do not want to lose their licenses. 

 

The strict regulators constantly review the licensed brokers to ensure that they are not breaking any rules and taking measures to protect their client’s funds. In the past, we have seen investment banks take unnecessary risks that forced them to go bankrupt, losing most of their clients’ money. Therefore, it is always best to open a trading account with a licensed broker. 

 

2. The ease of the deposit and withdrawal process is another primary consideration because you may want to withdraw your deposits or profits in future quickly. Most unregulated brokers have a complicated withdrawal process and are usually unwilling to return your funds quickly and may start giving your excuses amid long delays. A licensed broker will quickly return your funds whenever you need them without long delays as they are required to do so by the regulators. 

 

3. The presence of reasonable leverage. Financial leverage is one of the means that allows traders to trade the markets profitably, but it also increases the risk associated with your trades. As a trader, you have to choose the appropriate risk level for your capital. Although the application of financial leverage provides an exciting opportunity, you should treat it with caution. Too much leverage is extremely dangerous for your account, especially if you are not a seasoned trader. Do not trade with money you cannot afford to lose.

 

4. Price difference (the spread) is an essential measure for brokerage companies because it represents the fees they earn when you trade with them. Each broker charges a spread, which is the difference between the selling and buying price when you are trading. However, you should avoid brokers with very wide spreads because they could inflate your trading costs making it very hard for you to be profitable. Trading on a demo account will allow you to gauge a broker’s spreads. Always contact the support team when a broker’s spread becomes too high at any particular time.  

 

5. The number of financial products offered by a broker is also crucial. The more products offered by a broker, the more opportunities will be available to you as a trader. You should choose a broker that offers a decent amount of financial products in all trading categories, among others—the more instruments at your disposal, the higher your profit opportunity.

 

 

A deeper look at the financial products offered