If you plan to take part in this online investment world, it is suggested that you find out in the following the essentials to know before accessing the stock markets. First, you will find out how to choose your broker and then choose the trading platform. These two elements are essential to any trader in order to be able to access the stock market from his computer.
Before the trading platform, think about choosing a serious broker!
Before investing in the stock market, it is important to start by choosing the market in which you want to place your money to generate profits. Indeed, online traders can invest their money in company stocks, in cryptocurrencies, in commodities or even in Forex. It is up to you to choose your market according to your preferences and the budget you wish to invest. Investing money in stocks is a much more expensive investment than investing in cryptocurrencies, for example.
What is a Forex and CFDs broker?
A Forex broker, translated into “Forex broker”, is nothing other than your only financial intermediary who takes care of the transmission of your orders on the Forex market (Foreign Exchange). A Forex broker is, as a rule, a regulated company authorized to offer its services on this financial market.
How to choose a Forex broker?
In order to choose your broker online, and before choosing a trading platform to deposit your money and take part in the stock markets, you can base yourself on a certain number of criteria.
- The regulation of the broker must be the first criterion to consider in order to choose your broker. It is strongly recommended that you open a trading account on a platform offering regulated brokers. As an indication, note that ETFinance is a trading platform where all brokers are regulated.
- The quality and fluidity of your broker’s platform. It is important to use an easy to use platform to avoid wasting your time, especially when you have to make decisions quickly.
- The spreads offered by your broker. The best brokers are those who offer low spreads on all orders made. Be sure to check that the spreads displayed on broker sites are not a way to attract investors and encourage them to work with such or such broker.
- The quality of execution of your orders must be one of your main requirements when choosing a broker. A good broker must execute your orders only at the prices you ask.
- The trading strategies authorized by a broker are not always the same. Choose a broker that allows you to use any trading strategy. Not all traders proceed in the same way to open or close stock market positions.
- The dealing desk of your broker must imperatively correspond to your trading strategy. Ask before you go to see if your broker offers the execution model you are looking for.
- The security of the funds is a criterion that you must absolutely not neglect. Choose a broker who works with an efficient security system capable of protecting all user accounts.
- The trading accounts available from your broker are of utmost importance. Each trading account corresponds to a specific trader profile, depending on the budget you wish to invest.
- The ability to choose your own leverage is important so that you can control your gains and most importantly, your losses.
- The diversity of financial markets offered by your broker.
- The quality and professionalism of customer service available to you.
Availability of trading training. These courses allow traders to discover the foundations of online trading, especially in Forex. ETFinance offers you various training materials to support you throughout your investment.