With the coronavirus pandemic spread globally through 2020, there has been a flood of new accounts opened for short-term and day trading. This has reflected a number of socioeconomic factors including:
- individuals having more personal time during national and localised lockdowns
- the heightened volatility in financial markets (with greater possibility of profits, and losses though)
- the initial lack of sporting events meant that sports betting was essentially non-existent for some time
Surge in new traders opening accounts
The combination of these factors has led to a surge in new, individual retail traders opening trading accounts with brokers. If you a trading beginner, this this article carefully as it will help you in your quest to find a find a suitable broker. It will show you what mistakes to avoid.
You can find out more by checking out the best forex brokers list by fxexplained.
What to consider when selecting a broker
These are the significant factors to consider when selecting a broker for trading:
- What markets are on offer to trade?
- The trading fees
- Trading Platform
- Mobile Options
- Customer Service
Novices can practice on a demo account
If you are a new day trader, picking a broker is a key step in your trading journey. By considering the above factors, you should be able to find a broker that is a good fit for you. Consider testing out different brokers by opening up a demo account. You can find more advice and great articles and education on trading at https://www.fxexplained.co.uk/
Reputable brokers have demo accounts where you can practice in real world-like simulations. However, you use pretend money. In other words, your hard-earned pennies are not at risk. If you are new to trading, you need to practice first.
If a broker does not have a demo account, look elsewhere.
Is the broker transparent and regulated?
Make sure that the broker you chose is regulated. Their financial records must be available for inspection by anybody. Only then can you be sure that you are dealing with a top-quality professional organization.
If your broker is unregulated, you will not have anybody to turn to if they let you down.
Interesting related article: “What is a Trader?”