Trading is all about making money, yet many brokers are in the business of making money for themselves, and not actually helping out their clientele. It doesn’t matter if you’re trading stocks, currencies, or binary options,do to create a higher profit rate for themselves, and this inevitably takes money out of your pocket. However, by being aware of these things, you can learn how to circumvent these issues and start earning the money that you deserve, and stop giving it away for free.
If you’re trading in the Forex market, always be aware of the spread. This is usually the only way that brokers should be making money off of you, and some will try to increase the size of the spread in order to milk you for all you’re worth. Be conscious of this, and go for the broker that has the currency pairs you want to trade at the lowest spreads possible. The bigger the spread, the more difficult it is for you to make money, even if it’s only a tiny fraction of a penny. These fractions add up quickly, and can mean thousands of dollars after just a short period of time. Spreads need to exist, but they shouldn’t be big. If your broker has unnecessarily large spreads, you are losing money that you don’t need to. Find a broker that works for you instead.
Small Binary Rates
A lot of binary options brokers have substandard rates of return. Certain types of trades, like 30 and 60 second trades, have lower than normal returns. These can dip down below 70 percent, but then again, these trades should not consist of the bulk of your trading. The other trades you make, though, should not be this small. You need to maximize your returns in order to make your job easier. These predictions are often surprisingly difficult to make, and the more money you can get when you’re right, the easier your job becomes, and the more money you are making at the end of the day. Find a broker that gives you more money than any other broker on the trades you want to make. This will stretch your dollar further, and give you a much higher profit rate. Even a single percentage can equal thousands of dollars after a few months. Take advantage of this.
Bonuses and Promotions
These are usually not worth pursuing because of the ridiculous rules that brokers attach to them. They can seem like an easy way to increase your cash, and they sometimes can be, but you shouldn’t make the bonus the single point of your focus when choosing a broker. Instead, once you narrow down your search to a few brokers, then look and see which has the best bonus structure. All bonuses will have a trade through number. This number should be no more than 30 times the amount of the bonus itself. If you get $1,000 in bonus cash, and you are asked to make more than $30,000 in trades before you get to keep that cash, it’s probably not worth your time. There are other aspects of a broker that are going to make you more money more quickly, so look to these instead.
If you’re trading in the stock market, you will pay commissions on all stocks and indices that you buy and sell. If you’re trading, you want your executions to be made in real time, and this will cost you around $15 or so per trade, and you shouldn’t pay much more than this. You will also want to make sure you have stop-loss points in place, and these will cost you too. Just make sure that you are comparison shopping and don’t pay more than you need to. Commissions come out of your pocket and go right to the broker, so the more you pay, the more you lose. And the more trades you make, the more you will pay. These will add up quickly, so be wary of your expenses in order to keep your profits up.