If you have always put your money in a savings account with a building society, you may have never asked yourself “why do I need a trading account?”
However, interest rates are not so favourable these days to investors and many traders find that they can gain significant profits if they are willing to invest in the markets. If you are wondering, why do I need a trading account, then you might be surprised at the possible reasons. For starters, trading accounts are not simply a matter of high-risk trades and high octane action. Many investors use their trading account for the same purposes that others open a bank account. If you are clever at spotting good opportunities and do your research, you may find a good, long-term investment that will yield dividends for years to come. This could provide you with more income than interest rates on savings in a bank account would. Of course, there are many other possible answers to the question: why do I need a trading account.
The right trading account for you will give you access to the markets you want to trade on. And, if you can handle risk, you could put yourself in positions that lead to huge profits. A trading account is your opportunity to make money from the foreign exchange markets, the stock markets and many more. Many traders make money even when the markets are facing a downturn, by “going short”. So, depending on your trading preferences, your answer to the question why do I need a trading account, could be to make money even when the markets are falling.
The global markets are full of patterns, trends and price activity you can cash in on. True, some particularly volatile markets can be hard to predict. However, there are many factors that affect the markets that are known and clever traders can benefit by exercising their market knowledge. The global markets are not a series of random numbers. One reason you might give in answer to the question why do I need a trading account is that a trading account is your way into these markets and your way into testing out strategies.
Of course, if you do decide you want a trading account you do need to be prepared for loss. Your account provider should provide resources to help you minimise your exposure to risk and help you protect yourself against huge losses. You should never risk money you can’t afford to lose. If you are willing to take the time the study the markets, then risk should not put you off trading altogether. The main reason you might give in response to the question, why do I need a trading account, is that is if you do have some funds you can put towards trading, you could, potentially, see those funds grow and grow. As said at the start of this article, the answer to the question why do I need a trading account need not involve adrenalin packed short-term trading, but could be simply finding a long-term investment that suits your goals. There are so many options out there for traders, that whatever your answer to the question why do I need a trading account, you will be able to find the right trading account for you.
Risk warning: Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.