When you set out to make money, you need to have the right tools to make them with or else you might not be able to make much. Trading on the shares and commodity market is one way to make money. But then, many people have lost their life savings there too. How should one go about making trades on the Forex market?
Find a Broker
The first step is to find a broker. You must go by recommendation is you have friends who trade and know the people who are familiar with the trading scene. You can also search for the broker on your own and find out the terms and conditions that he offers. If they are conducive to you, then begin an account with him.
It is easy to find the Lowest Brokerage trading house but what is the chance that you will make money? This depends on how responsive the platform is that the broker offers you and the amount of money you invest. But first, who is the broker with the lowest brokerage. You have two kinds of brokers, the discount broker and the full-service broker.
The full-service broker will offer you most of the things a trader needs including tools of analysis and prediction. He will also give advice on how you must conduct the trade the next day. He charges a fixed rate on the transaction amount and this might work out higher than the fee that the other type of broker charges. To understand this let us see an example.
The trader, namely you, conduct a trade involving shares priced at Rs 410. The brokerage is fixed at 0.5% and the transaction amount is Rs 20,000. Then, you must pay the full-service broker Rs 410. Now, let us see what happens with the discount broker. The discount broker charges only a flat fee of Rs 50. It might be Rs 100 but it does not go more than this. You can see the advantage of using a discount broker especially if you do trades that involve huge sums of money.
Examine the Platform
Now, that you have found your broker, you must check out how responsive the trading platform is. You can do this by opening a trial trading account with the trading house and use play money to do trades. This will tell you what features there are in the platform and how you can use them to make money. You can also find if they allow any copy trading and things like that. It is one of the effortless ways to make money.
You just copy the trade a top trade makes. You put in your money and you keep making a profit because the expert trader will seldom make mistakes. When you finished checking this trading house, go to the next one and check all their features. Make one or two play investments also. This will tell you which platform is better.
Check the brokers and find the best one. When you invest money, you must be sure to make a profit, otherwise wait. There will come a time when you will definitely make money. Then you can invest.