The statement “investing has never been easier” might always be true due to technological progress, but today online trading is particularly accessible and inviting for everyone.
With the use of simple apps offered by popular brokers, trading can seem more like a fun game than the serious management of money. But it can be said that this makes learning and understanding trading much simpler.
In order to better understand how to get started as a complete beginner, take a look on site trading24online.com, where you will get an introduction to the topic.
Online trading consists of trading securities. You can buy foreign currency, stocks, and other assets, but the idea is the same. You want to sell it higher than you bought it. The size of the profit margin, and the time you spend holding the asset, can range from hours to years.
This makes trading incredibly nuanced and flexible, but with the rise of mobile phones and immediate access to the internet, each person can find his own style for trading.
If you’ve seen The Wolf of Wall Street, then you know about the dangers of buying bad stocks from predatory brokers. In the movie they refer to the people who buy those as “suckers”. In order to not be a sucker, you just have to follow one simple step- only deal with regulated brokers.
There are various regulatory bodies by country or region, such as FinCEN for the Americas, CySEC for Europe, FSA for Asia, and DFSA for the Middle East. There are many more, but always be sure to check that a broker you are interested in is properly regulated.
After this first step, you will also want to make sure that your broker offers competitive services, especially for beginners. You will want check how much of a minimum deposit you’ll have to put down, whether the broker offers DMA (direct market access) and CFDs (contracts for difference), and you will also want to check for useful features such as segregated bank accounts (which separate your capital from the broker itself, so that if they go bankrupt you won’t) and educational material for trading.
Choosing a Broker
While there are countless brokers out there, there are some popular companies to look out for, as they rank at the top when it comes to customer satisfaction. Some names you might have heard of include:
- IC Markets
- CMC Markets
- TD Ameritrade
- FP Markets
- Vantage FX
Choosing from these can be confusing, as there are multiple differences in both rates and services provided, and going by “top rankings” doesn’t necessarily help you understand the choice you must make.
The key to navigating this decision lies in particular factors- commissions and fees; offering of investments; research; platform and tools; mobile trading functionality; educational resources; and the trust of its clients. These can be discussed in great detail but make sure to investigate each when making your choice.
Once you decide to go forward and sign-up, the process will be quite simple. It involves providing basic personal details such your full name and date of birth, email address, place of residence, proof of identity, proof of residence, and a questionnaire.
Using a Broker
Once you sign up the first thing you will want to do in order to familiarize yourself with online trading is using a demo account.
A demo account basically gives you a simulated account to trade with as if you were trading with real money. The experience is the same a s real trading, only without real money. The consequences of your choices however will be identical to the actual market feedback, so you will have a chance to test your skills and improve them, before risking your actual capital.
Many brokers provide educational tools, such as videos and e-books (as well as structured courses), and these will help you better understand the market and try to apply what you’ve learned either in the demo account or the real world.
Once you do decide to invest for real, certain broker features such as negative balance protection will make it impossible for you to lose more than you are willing to risk, which is always good advice for beginners.
Other than that, keep an eye out for special and unique features, such as eToro’s social trading, which involves users sharing their investment choices and insight, and the community as a whole discussing the market together. Another form of social trading is basically copying the investment strategy and choices of other top brokers, and relying on their decision to be the right ones for you as well (for the time you choose to do so).
A careful trader will be able to start profiting right away, even if they don’t get rich right away. The most important thing is to move forward and get started. Take baby steps, and see where the road takes you.