Free Trading School · Level 1: What Is Trading?
Brokers, accounts and practising for free
A broker is the company that connects you to the market. It holds your money, executes your orders and provides the trading platform. Choosing a good one protects you from many problems before they start.
What to check before opening an account
- Regulation: the broker should be regulated in your country (in Canada, for example, by CIRO; in the US by the SEC/FINRA or CFTC/NFA). Avoid unregulated offshore brokers that promise huge leverage or bonuses.
- Costs: spreads, commissions, overnight fees, inactivity and withdrawal fees.
- Markets offered: make sure it offers the market you want to learn.
- Platform: charts, order types (especially stop-loss orders) and a mobile app you like.
- A free demo account.
A demo account lets you trade with virtual money on real prices. It is the single best tool a beginner has. Use it to learn the platform, test strategies and make your first hundred mistakes for free.
Nobody legitimate will ask you to send money to a private wallet, promise guaranteed returns or pressure you to deposit quickly. Those are the signs of a scam.
Open a demo account before you open a real one, and stay on demo until you follow your rules consistently.
Quick answers
A broker is the company that connects you to the market. It holds your money, executes your orders and provides the trading platform. Choosing a good one protects you from many problems before they start.
Open a demo account before you open a real one, and stay on demo until you follow your rules consistently.
Practise on a demo account. A demo account lets you learn the platform and your strategy with no financial risk.
Next lesson: Supply, demand and the auction