When it comes to investing money, FX trading is a popular option. This huge market has trillions traded on it each day and is the largest financial market around. For UK-based traders the London session is the one they will probably trade on with it opening at 8am and closing at 4pm. The FX market is actually available to trade on for 24-hours each day so that anyone around the world can find a trading session to be involved with.
Of course, the one thing that is essential for trading whether a newbie or a pro is an online broker. These FX brokers allow you to place your Buy or Sell trades along with allowing you to access the latest currency charts and manage your portfolio. Without signing-up for a reputable online broker, you simply cannot trade.
Picking the right broker for your experience level
Of course, when it comes to choosing a broker to use, some things are universal regardless of your experience levels. Beginning or advanced traders will all need to find an FX broker to use that guarantees high-end security and great customer service.
Once you go beyond those basics though it is key to pick a broker that is suitable for your level of experience. An advanced trader will need very different things to succeed than a new trader in terms of what features are on offer.
To really get a good idea of the best broker for you, check out online FX broker reviews for help. To get started though, here are some key things to think about.
- Think about the charting software on offer – one very important part of trading is reading the available charts and also using the tools your broker may offer to plot out strategies or apply key indicators to them. Different online FX brokers usually offer options here in terms of how advanced or basic their charting platform is to use. Naturally, if you are a new trader you may wish to opt for a more web-based charting platform with less advanced tools or indicators. More experienced traders will want a broker that offers more sophisticated tools and more advanced charting platforms like MT4.
- Information on the broker site – this is another key metric to gauge the broker you choose against. Less experienced traders are likely to want a site that has lots of advice on how to trade and some video tutorials. More advanced traders, however, will probably not need this as much as they will already know the basics. Make sure to check this out and select as appropriate when signing-up with a broker.
- Demo accounts on offer? – a demo account is basically a practice account that some FX brokers will offer when you sign-up. It lets you practice forex trading with fake money so you can learn without losing lots of the real stuff. Naturally this is great for new traders, but more experienced ones may not need this feature. The more experienced trader will usually be past the demo trading stage and already be confident in their strategy and how to apply it.
- Choice of instruments to trade – another factor that is important when choosing a broker to suit your experience level is the choice of instruments to trade. More experienced individuals may want a large range of instruments and currency pairs to select from. The new trader on the other hand may prefer a smaller choice of basic instruments or pairs that are easier to start with.
- Check out the leverage – leverage is basically borrowing money from the broker to trade with that you do not have in your account. If for example you use 10:1 leverage on a trade, you could open a £10,000 position in a pair but with only £1,000 in your account. While this may sound great, it can be very dangerous and is something that most beginners do not use. With this in mind, it may not be top of their priority list. More experienced traders may make extensive use of leverage and so need to choose a broker that has a good leverage facility.
Make sure to use the best broker for your experience level
As the above shows, where you are in your trading journey makes a big difference when considering which broker to use. This makes it essential to research any broker you are thinking of signing-up with carefully to see if the things you need are on offer. This will not only make trading on the FX market more enjoyable but will also give you more chance of success.