Choosing an online broker is the first step into getting started trading online and increasing your wealth.
Your broker functions as an intermediary, giving you access to the market of your choice, either stocks, futures, or currency, among others. They put at your disposal a platform that can be accessed from a computer or even a smartphone. From there, traders can buy and sell and design their investment strategies.
But, how do you choose the best online broker for you?
A bit of research is necessary to make a wise decision. And no better place to start than www.investingoal.com. This site offers a very detailed review of many brokers, with a clear overview of their strengths and weaknesses.
While there are many aspects to consider when choosing an online broker, investingoal offers a clear outline of what each broker offers, which is even better when combined with their comparing tool. An invaluable tool to make sure you are choosing the right online broker for you.
How to choose a broker?
There has never been a better time to become a trader. And choosing the right broker is not only your first bet to make a profit, but also the most important step to get into online trading.
We often mention that in order to choose the right broker, the most important aspect to consider is that they are regulated by the appropriate authorities, which mostly depends on what country the trader is resident.
It’s of utter importance not only to check the website of the broker for the registration information but to head to the regulatory body and check they are indeed regulated.
After making sure they are serious and your rights as a trader are protected, as well as your money, there is a myriad of considerations. These are some of the most important ones.
- Initial deposit. Most brokers ask for an initial deposit that may go from a few hundred dollars to thousands. Making sure the broker of your choice asks for an initial deposit you can handle is fundamental.
- Commissions and fees. Brokers have a diversity of fees in place and they change depending on what assets you are planning to invest in. Some online brokers ask for very low fees but may have higher spreads, so if you’re planning to invest in a currency they may not be your best choice.
- Trading style. Making sure the broker offers what you need based on your level of expertise and interests is important. Are you looking into copy trading, for example, not all brokers offer that option. Or maybe you are an experienced trader in search of very detailed reports.
- Customer Service. Make sure your broker is offering decent and reliable customer service since when you need them, you will probably want a fast answer and strong support. Most brokers use email, chat, and phone. Checking this out before committing is a good idea.
- Demo account. Some brokers will let traders use a demo account of their platform in order to have them try out their features and make sure they are comfortable using the platform and the tools it provides. This is important since their platform is your access to the market and where traders do all their work.
What does investingoal offer?
Investingoal has a very thorough system to list all brokers based on what your needs are and what you are looking for in an online broker.
Additionally, they have a comparison tool that allows traders to see side by side the characteristics of the chosen brokers, which could be very helpful once you have narrowed it down to a few options.
How forex CFD trading works
Trading on forex means starting a business of buying and selling currencies, which can always and only be traded in pairs.
For example, if you choose to trade pairs such as EUR / USD, CAD / JPY or GBP / USD you must keep in mind that one currency is bought and the other automatically sold.
The tools to deal with this type of investment aiming for profit are many but among these negotiating with CFDs is the most suitable solution.
CFD is the acronym for Contract For Difference and refers to derivative instruments that simulate the value of the underlying asset. In other words, these are virtual contracts or agreements that the trader enters into with the broker, through which it is possible to exchange the purchase and sale price of a specific asset.
The positive note in all this is that the trader does not have to actually own the asset, but it is loaned to him by the broker. Therefore, the user is not required to make a huge financial commitment for the purchase and this makes these instruments suitable for negotiation even for beginners.
The other positive aspect of trading forex with Contracts for Difference is the fact that potential gains can be obtained even if the value of the quote is down.
CFDs, in fact, allow you to make short sales, that is, to focus on the downward trend of currencies, so as to take advantage of the price difference between purchase and sale, with the possibility of repurchasing the asset at a lower price.
CFD trading: the importance of the broker
Trading CFDs to trade forex may not be easy for those with little knowledge of the sector. Therefore, beginners should first dedicate themselves to adequate training to better understand the mechanisms of investments and not risk losing money irresponsibly.
In this regard, on the web you can find numerous trading courses for beginners, paid or completely free and in various formats.
Some of the top brokers also offer training material for novice traders. To access it, you only need to complete the registration, without making any money deposit.
To invest with CFDs and, more generally, to make successful trading, it is essential to rely on the right hands and carefully choose the broker that best suits your needs.
Furthermore, it is advisable to always keep your eyes open and not to hand over your money to the first broker who promises easy profits because it could turn out to be a scam.
To guide your choice and avoid falling into the trap of scammers, you can refer to some features that identify platforms as better than others and with which it is possible to carry out a potentially profitable investment activity.