It is very important to take seriously, when you devote money to trading. When you get into the Forex market for the first time, that means basically that you are starting from square one. But, the thing is that you don’t have to worry, because you don’t have to be left in the dark, when you learn how to trade currencies. Different from the other markets, there is a variety of free learning resources and tools that are available to break new ground. To give you an example, let’s say that you could become FX-savvy and you are going to need the help of a selection of mentoring services, demo accounts, online and print resources, online courses, signal services. . . Yes, there is so much to choose from, but the question is most likely to ask – where should you start? In this article, we are going to show you some of the preliminary steps that you are going to need in order to find your balance in the FX market.
You need to find a broker. The first step is to pick a market maker with which to trade. Some of them have tighter spreads, some of them are larger than the others while some of them offer additional whistles and bells. You have to know that every market maker has its own disadvantages and advantages, but here we are going to give you some of the questions to ask when you are doing your due diligence:
– You should ask about the FX market maker and where is incorporated? And is it in a country as the U.K. or the U.S., or is it maybe offshore?
– Ask also how large is the marker maker? How many employees? Ask also how much excess capital does it have?
– You have to ask if the FX market maker is regulated? If it is regulated, in how many countries?
– Do not forget to ask if the market have 24-hour telephone support?
The thing is that you should look for a large market maker that is regulated in one or two major countries at least such as USA, Canada, or Britain in order to make sure that your money is safe and that you have a authority to appeal to in the event of a bankruptcy. Additionally, if the market maker is larger, the thing is that you can put the more resources to make sure that its trading servers and platforms stay stable and don’t crash when the market starts to be very active. Also, what you want is a market maker with a big employee base. Why? Because when placing trades over the phone you do not have to worry about getting a busy signal. The bottom line is that you want to find someone who is legitimate in order to trade with and to avoid a bucket shop.
You could visit the website of the Commodity Futures Trading Commission – that is an independent agency of the U.S. government – if you want to access the current financial statements of all registered FCMs in the United States.