Certain brokers have steadily been expanding their product offering, offering investors the opportunity to diversify their portfolios by investing in global stocks whilst giving them exposure to the markets. But where does a person who wants to invest in global stocks begin? The first step is to open a free account with a licensed and regulated broker. There are many brokers in the market, but some are not licenced and regulated, so exposing potential traders to risk.
Upon successful registration, the investor needs to make sure that the broker they have chosen has all the assets needed to trade on their trading platform. The online forex broker is then expected to undertake an extensive know your customer (KYC) process to ensure that the client is not investing illegal funds or engaging in money laundering activities. Once the required documents are verified, investors are free to start investing in various assets classes including global stocks which trade on global financial markets.
These global markets include currencies markets, global stock markets, stock market indices, commodities markets, futures contracts, Exchange Traded Funds (ETFs), and Contracts For Difference (CFD) stocks. The wide variety of assets and asset classes means that traders have a wide choice of opportunities to trade and make profits while also managing volatility and exchange rate risks.
Some brokers offer additional mobile platforms that have a simpler graphic user interface to make trading seamless for their clients. To manage risks, some brokers have developed risk management tools to help traders risk a very specific portion of their capital. This helps traders manage their capital effectively without taking too much risk. These platforms allow traders to access global financial markets on a desktop computer, laptop, tablet, and/or mobile phone as long as they have an internet connection.
The trading platform gives traders access to multiple order types such as market orders, pending orders, stop loss orders, take profit orders, and trailing stop orders. Licensed traders have third party website applications for social trading, trading performance analysis, market analysis, live market updates, technical charts analysis, and risk management that aid an investor in achieving financial trading success as well as consistency.
The global online financial markets offer potential rewards to traders which largely outweigh the risks involved. The technology deployed in the trading platforms give traders an upper hand in mitigating risk while the global online trading community gives a trader a wide range of perspectives to make an informed trading decision.
Retail traders can deposit as little as $100 and begin building a portfolio with discipline and skill to achieve some financial goals. The licensed online forex brokers also organise trading lessons to help traders understand the dynamics of global financial markets before getting in. Ultimately the choice to invest is left to individual investors guided by their risk appetite and investment goals.