If you’re completely new to the world of trading and markets, the various options and avenues opening up to you are likely to seem fairly complex at first. Where on Earth do you start? How can you hope to make money from the markets, and which platforms are likely to work best for you in the long run?
Thankfully, trading is getting easier and more accessible on a wider scale. That’s largely thanks to a surge in apps and programs popping up for smartphones over the past few years. However, there’s also been a surge in retail trading, too. This is where people choose to head straight to the markets on their own without any kind of broker influence.
That considered, hiring a broker to help you navigate the markets isn’t necessarily a bad idea. It’s a very good idea to familiarize yourself with how the markets work in general, in any case. For example, you may wish to read up on an FXTM Trading review through an advisory service such as AskTraders. In fact, AskTraders is likely to be a great resource for you ahead of signing up to any of kind of broker.
Regardless, here are some solid reasons as to why you should hire a broker over attempting to navigate the markets on your own.
Brokers know the score
It’s easy to assume that you will ‘hit the ground running’ when it comes to reading and understanding the markets. However, forex and day trading take time to master. Is that time and effort you can necessarily afford to expend if you are simply looking for an authoritative way to drive a passive income?
Hiring a broker effectively means that you get instant access to years of trading expertise. Not only that, but you will have the chance to tap into their extensive research network. This means if you are ever in doubt about buying into specific stock, you have access to a genius who can give you a clear answer in a flash.
Brokers work for you
Good brokers – those with established reputations that precede them – will always work in your best interests. After all, they are receiving a cut. They’ll have access to knowledge that allows them to clearly plan ahead for your objectives and finance goals.
Planning ahead when going it alone in retail trading might be liberating, but it can be immensely time-consuming. The balance here, of course, is money versus time.
Brokers have your financial success very much in mind. They don’t really succeed unless you do, which means they are naturally going to be invested in you making serious money from your trading. In any case, it is always a good idea to look for a trading broker that has glowing reviews and accolades all around.
It’s a sure-fire way to grow money
While retail trading, again, offers you a lot of control and scope, it’s hard to know what to do, and where to go, once you have been building a portfolio over several years. You can build experience and knowledge of your own very quickly, but markets are volatile. This is especially the case when you consider forex.
If you make a big enough splash early on and build a strategy that works in the short term, there is nothing to say you will make it work long term on your own. That may sound pessimistic, but if you are concerned about safety nets and making sure you have money to fall back on, then it is well worth considering a broker.
Experienced brokers and firms will make sure that you have access to flexible, scalable knowledge that can weather the storms to come. Unfortunately, no one really knows which way the world will turn next. However, brokers at least have the tools to keep their clients moving in the right direction.
Should you choose a broker over retail trading?
There are plenty of great reasons why investing in brokers are ideal over retail trading alone. Again, it’s all about money. If you don’t have much capital immediately and actively want to make more money as soon as possible, then it’s tempting to go into retail trading headfirst.
However, saving the capital to share with a broker or brokerage firm could give you the longevity you need to make trading a truly passive source of wealth over the years to come. Think carefully before you choose a strategy!