How to choose a stock exchange for trading?
There is a desire, there is enough capital at the initial stage, but where should a beginner go to increase their finances? Shouldn't there be a place where traders and brokers can trade securities? It is true that transactions for the sale and purchase of currencies, commodities, assets, futures take place in a special and functioning in a certain way market, which received the general name - the stock exchange or just the exchange.
Meeting place for supply and demand
How does the trading exchange work? Suppose you have a certain amount of free funds on hand that you would like to increase. One option is to invest it in the purchase of securities, and after a certain period of time, exchange it back for money, making a profit. And someone does not have enough money to expand the business, and to solve the problem, the issue of attracting investments is being considered. The place where two such strangers can reach a compromise is the stock exchange. Here, conditions are created and maintained for the circulation of state certificates, bills of exchange, shares and other valuable objects of sale and purchase, in which individuals and legal entities are interested.
The structure of stock exchanges depends on the scale, specialization, form of ownership. As public institutions created under the control of the state, such organized markets operate in Italy and France. The state allocates premises for carrying out exchange operations, representatives of the exchange are at the same time state representatives, but act at their own expense, like entrepreneurs.
What do all stock exchanges have in common?
Target: regulation of the process of buying and selling securities.
Functions: intermediary, regulatory (organization of trade), advisory (valuation).
Criterias of choice
How to choose a stock exchange for trading? The first step is to answer the question: what do you want? Learn to independently increase your income or trust an intermediary. For a beginner, the choice of a trading platform causes, if not panic, then confusion, and at this stage a considerable percentage of those who believe that trading is not for them is eliminated. Novice traders who know that stock exchanges differ in the specifics of currency, commodity, options, and futures have a slight advantage. In other words, the difference between them is like between a grocery store, a clothing boutique, an electronics and sports equipment store, although there are exchanges that, by analogy, resemble supermarkets, i.e. universal.
The second step is to make a list of such exchanges, find information about them, the nuances that would be nice to know about before trading will be especially valuable. A kind of insurance against "surprises" that may show up at the wrong time.
The third step is to evaluate and compare according to parameters that are significant to you, taking into account the nuances found. The criteria for choosing a stock exchange can be the following:
- the size of the minimum deposit;
- conditions for opening an account (easy/difficult, fast/long, etc.);
- availability of various tools;
- time of completion;
- payment of taxes;
- the real volume of transactions (an excellent filter that qualitatively characterizes the exchange).
For beginners to learn trading, experienced traders are advised not to rush when choosing a market, and not to start with Forex. A simple trading terminal interface, a minimum deposit and an easy account opening procedure will give you a try, but you will quickly drain your savings without learning how to trade. If you are seriously considering trading on the stock exchange, start learning the basics of the real market!