Increasing competition among online brokers, which is a good thing because it reduces costs and provides more services。However, it also means that more and more new companies are joining in, hoping to attract users through various promotions.。As a result, it is especially difficult for new traders to find the right trader for them。

Choosing the right broker is an important step in becoming a successful trader。If you have a good broker, you have a better chance of success。However, the process is still not so simple。You need to do an in-depth study of Forex trading and consider a number of important factors。

3 Common Mistakes for Novices

We've summarized some common mistakes that newbies to trading often make when choosing a broker, in case you fall into the same trap。

● Common misunderstandings

Novices usually don't know much about forex trading yet, so they tend to just follow general instructions or online trading advice。However, without a good understanding, many things can be misinterpreted。For example, most beginners would think that they should look for brokers that offer demo accounts because demo accounts can be used to practice their trading skills without worrying about any actual losses。

In fact, a demo account can never provide the same results as a real transaction。In many cases, traders make a lot of money in demo accounts, but lose money once they move to a real trading account。The main reason for this is lack of emotion。Fear, greed and hope play a huge role in a person's trading performance, but in most cases these emotions simply do not exist when using virtual funds。

Still, a demo account does have a lot of benefits because it gives new traders a general idea of the company's software and market operations, but a demo account does not fully mimic real trading conditions。In addition, most brokers have demo accounts。

It's best to start with a 1-cent real account and start small.。One cent is equal to 0.$0001 a hand, so very convenient。In addition, there is no minimum deposit requirement, you can deposit any amount you want in your account。Once the account is established, you just keep practicing until you get a steady profit。Once you are more confident in your trading, you can switch to a standard account。

● Choose the cheapest option

Another common mistake traders make is choosing a broker based on the cheapest commission。Today, there are many discount brokers that offer lower commissions than traditional brokers。This is certainly attractive to many traders because they can save a sum of money instead of spending it on commissions and trading fees。

However, commissions are not the only important factor when choosing a broker。In fact, you should choose discount brokers carefully, as they are sometimes unreliable。Therefore, in addition to commissions, it is also important to evaluate other aspects, such as the broker's security measures, the quality of customer service, the execution speed of the platform, etc.。

● Blindly follow recommendations

Many brokers claim to provide the best products and services for any type of trader, but in fact, not all brokers are suitable for beginners。As a trader, it is important to know that there is no such thing as the "best" broker.。In fact, you need to find the "best" broker for you。This means that you need to understand your needs and preferences and make decisions based on them, rather than choosing the most popular or recommended broker.。

If you blindly follow the broker's recommendations without actually understanding their situation and the services they offer, you risk going astray。This does not necessarily mean that the broker is bad, but that it is not for you at all.。For example, some brokers offer a large number of advanced trading tools that are more suitable for expert traders using complex trading strategies.。These brokers also usually charge high maintenance fees, so they are certainly not suitable for beginners。

Considerations for choosing a broker

Multiple studies show that about 95% of beginners lose money。If you are in the early stages of your trading career, then you should focus primarily on practicing and minimizing your losses。Therefore, beginners have a specific set of criteria that are different from other traders。When choosing a broker, here are the criteria you should be aware of:

● Broker Security

All traders should prefer a safe broker, especially for beginners, as they are not familiar with the risks associated with an unregulated broker。If you are a novice, you can start by looking at the broker's address and contact number。Make sure they can be reached and that the office does exist。

Then, check the broker's license。It is recommended to choose a regulated broker as they are more reliable。In addition, the broker's compliance is checked, mainly related to marketing, KYC regulations, bookkeeping, etc.。Remember that you will be entrusting a broker to store your funds, so you really need to choose a trusted broker。

● Low deposit and trading lot requirements

As mentioned earlier, beginners should start small。It's definitely not wise to risk a lot of money at the beginning of your career, because you can lose all your money in the blink of an eye。Instead, you need to be patient and gain experience through a lot of practice。Here's why it's a good idea to choose a broker with low deposit requirements。

For beginners, it is recommended to deposit only $100 or less in the first 3 months, and the smaller the opening volume, the better。You can choose a small account to trade, which allows you to open an account as small as 0.01 lots of position, or open a minimum number of lots of only 0.$0001 cent account。Since you only trade with a small amount of money, there is no need to worry about transaction costs。

● Easy to use platform

Forex trading is already complex by nature, so there is absolutely no need to choose an advanced platform to make everything even more confusing。The best way is to choose a platform with a simple interface and easy to use。Just make sure it has all the tools you need to start trading and you can start trading。

● Good customer service

Broker customer service quality is very important for beginners。Before signing up, you can "test" the broker and contact their support staff to see if they respond positively。If it takes a long time for them to reply, or their answer is not satisfactory enough, then you may need to reconsider choosing this broker。This is important because when you have a problem, they will help you。So you need to make sure they are easy to contact and helpful。

● Good educational and training materials

Last but not least, beginners must look for brokers that provide good learning resources。Learning materials come in a variety of forms, such as trading articles, quizzes, and webinars。Some brokers even offer weekly or monthly training courses to help beginners improve their trading skills。They may charge extra for this, but it's all worth it in the long run。

Trading is not a scripted investment, so there is no real way to guarantee your success。Instead, you need to blaze your own path and find a trading system that suits you in order to make a decent profit。That is why it is very useful to receive a proper education, especially for beginners。Even as an experienced trader, you still need to keep learning and keep improving your skills。

Finally

Choosing a broker is certainly not an easy task.。Nowadays, there are many options, but remember that not all brokers are suitable for beginners。Since your trading journey is just beginning, you need to first understand how the market works and then decide which broker you want to work with。

You can narrow down your choices based on the above factors。It will also be helpful if you can identify the signs of brokers that you need to avoid。But most importantly, you should know the broker before registering。Conduct a comprehensive study, consider the pros and cons, and don't forget to check [broker recommendation]。