Are you thinking of trading in the financial markets? The forex market is very lucrative because it can offer high returns and now the cryptocurrency market is also gaining popularity as it presents new opportunities to those interested in trading. No matter what market you decide to trade in, the very first thing every trader has to do is open a trading account. This sounds easy enough, but can become really tough. Why? This is because there are countless platform providers all over the world and choosing one of them to be your broker can be a difficult decision to make.
This decision can be more significant than most traders realize. If you take a general look at most platforms, they will appear to be homogenous, offering a bunch of similar features and services. But, if you decide to take a closer look and do a thorough comparison, you will be able to point out the significant factors. The question is what factors should be relevant to your decision. The most important factors that you should consider when opening a trading account are:
Whenever a trader buys or sells a financial product, whether is a forex currency pair or a cryptocurrency pair, it is a given that they will incur a transaction cost. With every trade, your cost is going to rise as it is directly proportional to volume. If you leave them unchecked, the cost associated with each transaction will eat into your profits or simply add to your losses. Therefore, in order to counter this, it is important for every trader to ensure that their transaction costs don’t increase to a point that they hamper your ability of profiting from trades. On this website, you can read more interesting details in this regard.
There are two forms in which transaction costs can be charged. Either it is in the form of commission on the transacted value or it is through the bid-ask-prices that are quoted net of these commissions. You need to decide what kind of transactions costs you are comfortable with and then shortlist your broker accordingly.
Personal finance has become truly globalized thanks to the internet. In the past, retail investors had to depend on calling their brokers or trading representatives for buying and selling their investments. In today’s world, on the other hand, all an investor needs is an internet connection and they are free to use any trading platform that’s offered by providers all over the world. But, the downside is that there is no shortage of small and obscure providers who are offering their brokerage services. Some of these platforms offer very low transaction costs in order to entice investors to use their services for their trading needs.
Yet, for asset classes such as foreign currency pairs or cryptocurrencies, it is wiser for you to utilize a well-established trading platform for your trading needs. This is due to the fact that you may have to take a position against these providers in the market, who then have to hedge their position in the open market. If they don’t do this correctly, they could face substantial losses, which might drive them into insolvency and create problems for you.
The platform itself is also a factor that you need to consider because the availability of tools and user experience are key considerations. These include charting indicators and customizable features that can influence your trading activities. Make sure the platform you are considering offers you useful features such as stop-loss orders an automated trading or minimizing the risks as well as the efforts that you have to put in.
In today’s environment, we have come to use our smartphones and mobile devices for a variety of purposes. You can now use them for shopping, studying and everything else. The same applies to trading. A number of trading platforms offer mobile support, which means that you can check on trades through your phones with ease. The platform you are considering should have this crucial feature because you want to be able to make your trades no matter where you are. Before you open an account, check if a mobile app is available as you will be able to use it to capitalize profits and minimize losses quickly, even if you don’t have access to your laptop or computer. Learn more in this regard.
Easy Account Opening Process
In other words, you should look for the most convenient option available to you. Every investor appreciates a low barrier to entry because it means that there are less hassles you have to face. Being able to open an account online without a lot of fuss is something everyone wants because it can save considerable time and allow traders to get started as soon as possible. Moreover, also look for a brokerage that asks for a small funding amount as this will provide you with flexibility to test drive before deciding whether you are comfortable with using it or not.
Not every investor is knowledgeable about the trading market, especially when it cryptocurrencies. Since they are a relatively new asset, a number of investors and traders don’t have a lot of information about it and don’t know how to trade them profitably. Therefore, educational support is also a feature that you should look for before choosing a platform for opening your trading account. If you want to be successful in trading, you need to understand exactly what you are doing instead of relying on luck. There are various platforms that offer a complete education center and it is best if you sign up with them to learn the ins and outs of trading.
Last, but not the least, you should check if the platform offers the products you wish to trade. For instance, if you are interested in trading Bitcoin, make sure the platform allows you to do so. Likewise, check for the forex currency pairs you wish to trade before you sign up for an account in order to prevent any problems.