Forex is a popular currency exchange platform, which is gaining popularity day by day. People in this market have to follow a sequence to make profits or face losses. They have to – buy a currency against another – hold it for a certain duration – watch or analyze the graph – sell the currency after a certain period.
To make the entire sequence simple, let’s discuss it deeply. In the beginning, a trader has to choose a timeframe whether he wants to enter a shorter timeframe or a longer one. The shorter timeframe ranges between 1 to 15 minutes or 1 hour. Longer timeframe ranges between a day, week, or even months. After choosing a timeframe, the trader has to buy a currency against another and hold it for the time that he chose before.
You may think that this entire process is very easy, and anybody can start making money from this currency exchange market. However, the reality is quite different. An investor in this platform doesn’t become so successful within a few days or weeks. It will take years to become an experienced trader and make a fair amount of money from each trade. Once you enter the market, the most challenging part will be – choosing a platform for the trade. To get more info about premium paltfrom, visit the website of Saxo.
How to select a good trading platform for the CFD market
While choosing a platform, always follow these five tips –
1. User-friendly platform
Remember that you have invested valuable capital in this market, so it is a must to be careful about it. While choosing a platform, make sure that it is neat and clean. Beginners think that if they use too many indicators at the same time, they can get more accurate information.
A messy platform will always make an investor confused about what’s going on in the market. Every movement of the market should be easier to realize. Sometimes, it becomes harder for the newbies to find the right button and the chart to identify the market’s condition.
2. Preferable spreads
Brokers provide a lot of essential features to the traders, and the features include mutual funds, cost options, traded funds, bonds, and so on. Brokers receive fees in two ways – the satisfaction of the Singaporean trader and the spreads or commission fees that the investor will pay him. Many brokers have a higher commission rate and offer few features. Experts always opine to avoid these kinds of brokers.
3. Attention to the account minimums
Many higher-ranked CFD brokers can be found without the account minimum. You can find the best online brokers who are perfect for the CFD market. Some brokers need a small investment at the beginning. Often, they ask for approximately $200 or $500.
Some investors don’t have a high amount of money to invest in this business. That’s why it is a suggestion for them to find those brokers who require a minimum amount.
4. Fees of the CFD brokers
Nobody can ignore the spreads or commissions of a broker. No matter what happens to you, what you face during the trades, you have to provide a small percentage to the broker. A trader should make sure that he has gathered enough information about the broker before transferring his money. In addition, they may also charge the investor by offering several packages or a few extra services, which are not necessary. The investor can avoid extra fees by not selecting those unnecessary offers.
5. Trading style
Since this is the first investment, you don’t have to go for the advanced features to enter larger trades to earn something bigger. Many tutorials may help to handle the problems related to choosing a specific trading style.
These are the simplest tips for the newbie traders to choose a good trade platform to start the CFD trading business.