USEFUL TIPS: HOW TO CHOOSE A FOREX BROKER
- Author Alex King
- Published July 15, 2020
- Word count 1,218
Forex trading is one of the most popular ways to make money for millions of traders around the world. Of course, one of the essential conditions for a successful transaction is to choose a quality and reliable brokerage company. If you do not know how and which broker to choose, you will find on this page some tips that can help you cope with this task. Today, hundreds of large brokers offer their services to traders. The choice is truly enormous. We suggest studying the general rules on how to choose a successful broker.
MAKING THE RIGHT CHOICE IS NOT SO DIFFICULT!
In this section, we will examine in detail the six main criteria to take into account if you want to choose a quality and reliable intermediary for successful work in the Forex market.
At the beginning of our story on how to choose a broker, we would like to emphasize that a reliability problem is the most important. Even the most effective trading strategy and informed decisions will not bring the desired profit if the brokerage firm cancels profitable trades without explanation, authorizes slips and quotes, does not allow to withdraw gains for weeks and does not not provide high quality user support. You can avoid such problems if you carefully study the reviews of the company you are interested in.
To properly select an appropriate broker, you need to consider both customer reviews and the availability of licenses from regulatory authorities. In most cases, any reliable broker licensed by the regulators strives to provide high quality transactions and good terms. This is not surprising, since in most cases traders can submit complaints to regulatory authorities. They, in turn, have the right to impose various sanctions on unreliable companies, ranging from fines to revocation of licenses. When deciding how and which Forex broker to choose based on the reliability criteria, it is certainly worth mentioning the need to take into account the company's experience in the market and the comments of professional traders on its work.
- TRADING CONDITIONS
In most cases, newcomers who have a very limited budget at the outset cannot afford to choose a large, reliable brokerage company known in the market and licensed by recognized regulators. This is why, in this case, we recommend that you seek an optimal balance between attractive trading conditions and the good reputation of the intermediary.
By analyzing the question of how novice traders make the decision to choose a broker for their work, it can be concluded that in most cases, they pay particular attention to the size of the leverage and minimum deposit. Such an approach can hardly be called the best, as it is unlikely to be successful. Significant leverage can make it possible to multiply the deposit several times a day or to siphon off all the profits in a single transaction in the event of a sharp change in the market.
Speaking of how to choose the right Forex broker for a novice trader, we would like to note that maintaining a minimum deposit level is a great opportunity to learn how to trade: in this case, you can feel the atmosphere of low risk trading. In addition, a reliable broker in most cases provides demo accounts to clients as a platform for training and testing trading strategies.
Before you finally choose a professional broker, you need to pay attention to the hidden commissions. Most often, brokerage firms decide to choose and establish not only spreads for their clients' open positions. It can also be an additional fee for withdrawing funds, providing services, etc. This is crucial if you want to know how to choose the right Forex broker and not lose money earned in the future.
- DEPOSIT / WITHDRAWAL
Each brokerage firm independently decides how to deposit and withdraw funds for its clients, as well as the daily deposit / withdrawal limit. Today, almost all brokers are able to use wire transfers to bank accounts and credit cards to replenish and withdraw the deposit. In addition, in practice, you can almost always choose a broker suitable for trading, who will support the payment system that suits you (Skrill, Paypal, VISA, MasterCard, etc.).
Most often, a minimum fee is applied to these payments and the money is properly credited to your trading account within minutes. It should be noted that some reliable and competent brokers support automated withdrawal. Before choosing a broker, you should assess your need for this useful service with the companies that interest you. This is a very important feature that allows you to automatically transfer money earned from the Forex market to your electronic wallet at virtually no additional cost. restrictions.
- TRADING TERMINAL
We recommend that you choose a broker that offers a functional and understandable trading platform that supports the most popular and functional terminals. The availability of the web version of the trading platform and mobile applications for trading can be considered as an important advantage that motivates the choice of such a professional broker. Of course, in most cases, these types of Forex trading platforms have more modest functionality, both for performing good technical analysis and for using trading signals and other tools. However, in any case, this is an important advantage. This allows you to better understand how to correctly choose a broker.
- CUSTOMER OPINIONS
The comments and opinions of the trader's peers on the work of a particular broker are in most cases crucial for beginners in the Forex market. However, the approach to their evaluation should be critical. Often, novice traders can blame even the most reliable and successful brokers, because it is the user who decides how to trade and which strategy to choose for the job. Very often brokerage firms also pay for promotional evaluations. Don't trust everything you read. In other words, it is necessary to choose and account for trading only really useful advice from impartial and experienced traders.
- SERVICE, BONUSES AND SPECIAL OFFERS
Before choosing a reliable and quality broker, it is necessary to assess its quality of customer service. The availability of qualified assistance 24 hours a day on the phone, on Skype or by email is no longer an advantage, but an essential condition for any successful Forex broker. In most cases, with the competent wording of the question and adequate communication, the assistance service of any brokerage company can provide complete answers to all your questions.
When it comes to how to choose the ideal broker, you need to pay close attention to bonuses, promotions and other ways to encourage customers. For example, in most cases, you can receive an additional bonus of between 50 and 200% of the amount you first deposited into your account, depending on the amount credited. In addition, the provision of various analytical services and free trading tools is an important advantage. Now you really know how to correctly choose a broker and which reliable intermediary to use.
It may seem that it is extremely difficult to choose a good broker and this task is time consuming. In fact, this statement is close to reality. However, if you follow our recommendations, you can find a Forex brokerage firm that meets all of your requirements. We sincerely hope that our recommendations can help novice and experienced traders to choose the best broker for trading.
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