After understanding some basic knowledge about the financial environment and foreign exchange trading, if investors choose to enter the market, they must be well prepared and pay attention to some details before investing.
Investors should pay attention to the reputation of the broker, so they should compare prices and check whether the broker is legally regulated, whether the licenses are complete, and how long the broker has been established. If these conditions are met, the credit risk can be greatly reduced.
Another consideration is the deposit and withdrawal. If the deposit and withdrawal channels are limited or the processing efficiency is low, then when investors need to replenish margin or withdraw funds, their funds may be at risk. Therefore, before starting to trade, you should pay attention to the deposit and withdrawal methods and choose a broker that is convenient and has more channels.
Another important factor for investors is the number of tradable products and whether the platform is easy to use. If the tradable products are diversified, it means that investors can take advantage of more market profit opportunities at the same time, and if the platform is easy to use and convenient, it means that investors can trade more efficiently. However, most traders currently use MT5's trading platform, so the difference is not big, the main thing is whether the connection quality is stable.
The above are some of the key points you should pay attention to when screening brokers .
It is a little bit of a mystery what account types there are. Generally, the more common ones are mini accounts and standard accounts. The main difference between the two is the spread and contract size. In addition, factors such as leverage, forced liquidation ratio, etc. vary depending on the regulations of the broker.
In short, the transaction size of mini account is smaller, and the minimum required investment amount is relatively low, which is more suitable for novices who have just entered the market. If you are an investor with more experience, you can choose standard account to obtain more competitive spread advantage and increase profit opportunities.
Finally, let's talk about ECN accounts (also called professional, premium accounts, etc.). The platform directly connects investors' orders with the market and matches transactions in a matching manner. The biggest feature of this type of trading account is that investors can enjoy a spread close to 0 (raw spread).
Generally speaking, investors should first clarify their investment experience , direction and attitude , long-term or short-term strategy deployment , whether they have sufficient funds, etc., before deciding on the account type.
If investors are afraid to invest money at the beginning, dealers also provide simulation trading for novices to practice. After all, simulation trading is not their own money, so investors will not take the gains and losses of operations too seriously. Without the emotional factors such as "greed and fear" brought by actual trading, investors often do not get trading experience when operating, and may also have the illusion of "making money easily". These bad habits are likely to be disadvantageous to investors in actual trading. It is recommended that investors must take simulation trading seriously, verify and cultivate their own trading system, and take good notes. This is not only an important practice before real trading, but also a step to cultivate a good trading mentality.
In general , the above are just some of the key points before entering the market. After entering the market, you still need to spend more time learning to become a successful and outstanding investor .
All financial products traded on margin carry a high degree of risk to your capital. They are not suited to all investors and you can lose more than your initial deposit. Please ensure that you fully understand the risks involved, and seek independent advice if necessary.