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(Boursier.com) — Have you decided to use a broker to make your financial investments profitable? Good initiative ! To find your way among the different offers that exist on the market and make the right choice, you should be careful to avoid certain pitfalls that could cost you dearly…
1/ Choose a reliable broker!
Behind attractive offers sometimes hide intermediaries who do not have all the required approvals… It is therefore essential to check that the broker has official accreditations to operate in France. On this subject, do not neglect user opinions and use online comparators. In addition, do not use pricing conditions as the SOLE criterion of your choice.
2/ Choose a broker that matches your investor profile.
There are general brokers (recommended for beginners), others specialized in Forex (currency market) or even very specialized brokers who mainly offer CFDs and high leverage products. From certain thresholds, some direct you towards managed management… Don’t hesitate here too to listen to the feedback from other investors, to compare, and set your own trading or investment objectives.
3/ Train yourself and/or get support if you are starting out on the stock market!
Some brokers offer real support to familiarize yourself with the financial markets: webinars, white papers, videos, even advisors… Take time to train yourself before starting. Don’t hesitate to test your knowledge “dry” using “demo” accounts, without risking a single cent to learn from your successes and your mistakes! Also make sure that you can get a quick response from an expert to your questions (dedicated phone number, online chat).
4/ Choose an available broker.
It is not always possible to manage your portfolio during stock market opening hours due to lack of time, especially if you have a busy professional activity… Make sure you will be able to connect to the platform or to the application of the broker at any time and without technical difficulty. Reliability, transparency and flexibility of use are key words here. In case of emergency, you must also be able to place your stock market orders by telephone.
5/ We do not prohibit you from accessing certain markets or certain stock market orders.
The number of markets available with a broker does not determine its reliability, but all the same, be careful not to limit your room for maneuver too much… You may be required at a given time, depending on market opportunities or news, to trade on certain specific, even exotic, markets, the most popular markets not necessarily covering the entire range of existing assets (Forex, stocks, bonds, indices, raw materials, cryptocurrencies, etc.).
It is also important to have access to a wide choice of stock orders, particularly for an active trader who initiates many positions and is likely to develop complex trading plans.