If you just start with Forex tradeing, then choosing the right broker is key
If you just start with Forex, then choosing the right broker is key.
The number of options is huge and every broker tries to get you for something else. So how to choose the right one? First of all, it is necessary to focus on the important facts that distinguish quality and trusted brokers from those who are better off avoiding. Only then can we be tempted by bonus offers of all kinds. Of course, one thing is true – if your broker tries to get the password for the (Free Forex trading tip), look for it elsewhere. Using misleading slogans is the privilege of brokers who are unable to offer a quality product. So what do you want to focus on when choosing a broker? We have five main tips for you:
One of the most important criteria for selecting a Forex broker should be its regulatory status. An unregulated broker can offer quality services and act professionally, but the merchant’s money is not completely safe. Within Europe, the most well-known regulatory authorities are the London Financial Financial Conduct Authority – FCA and the Cyprus Securities and Exchange Commission – CYSEC. In the US, he is a trusted broker member of the National Futures Association – NFA and is registered with the Commodity Futures Trading Commission – CFTC. The main task of these organizations is to create rules and programs to protect the integrity of the market, investors and traders together with providing support to their members to resolve regulatory obligations.
Merchant account properties
The second most important aspect when choosing a broker is the trading account and its features. The offer among some brokers differs considerably, so it is always necessary to find out how the following points work:
Fees and Spreads
Is Broker Fee Charging for Each Transaction Or Making Spreads? Most brokers have recently gone through a zero-payment path, and so many retailers pick brokers with the slightest spores. The narrower the spread, the easier it is to make a profit. It is common practice that major currencies such as GBPUSD or USDJPY tend to be narrower than the currency pair EURHRK. More about spreading here.
Forex offers the advantage of a relatively high leverage, which is often around 1: 200 or higher for some brokers. The financial leverage allows for higher profits with smaller capital. However, there is also a risk of greater loss, but we can prevent Stop Loss business orders. So, if you expect more earnings from Forex and you are not afraid of taking a little risk, choose a broker with the biggest financial leverage. Details of the leverage effect here.
Beginners should initially check the amount of the initial deposit before registering your Forex account. It often depends on the type of merchant account you want to open, but the initial deposit ranges from 50 USD to 10,000 USD.
Deposits and withdrawals
If you have a preferred deposit or selection method, then you should first check to see if the broker you want to create your account supports. Brokers often offer a lot of freedom and allow the use of bank transfers, debit and credit cards or electronic wallets. With deposits through Paypal, however, a few brokers are still behind.
Successful trading on Forex requires a platform that offers all relevant information on traded currencies along with the necessary financial instruments. The vast majority of brokers, however, already offer this, so it’s a good idea to choose a platform that’s easy to navigate. For example, the MetaTrader4 platform, has become very popular, but it may cause some confusion for somebody.
The goal of each company is that no customer needs to contact customer service. Sometimes it’s inevitable, so if you do not speak English, it’s good to find out beforehand whether the broker you are about to register offers customer support in the multiple languages. Is your favorite contact method live chat? Not every broker offers it, so it’s another detail that needs to be reviewed.
The bonus should not be one of the main reasons for choosing a broker, so we are only mentioning it as the last point. Often, the higher the bonus, the lower the quality of the service. This, of course, is not the rule. Almost every broker offers a smaller or larger welcome bonus for new merchants, which is either conditional upon your initial deposit or you will receive a small amount only for registration. Another type of bonus is called retention bonuses that no broker does not communicate, but in the long run it offers the merchant to keep it. For example, if you open a new account, you will trade for a month and then give yourself a longer break, and you will surely get a bonus offer.