Forex trading is one of the most popular ways to make money for the millions of traders around the world. Of course, one of the main requirements for successful trading is to choose a good and reliable brokerage company. If you do not know how and which broker to choose, you will find a few tips on this page that can help you cope with this task. Today, hundreds of large brokers offer their services to traders. The choice is really huge. We offer to study the general rules on how you can choose a successful broker.
In this section, we will consider in detail the six main criteria to be taken into account if you want to choose a good and reliable intermediary for successful work on the Forex market.
In the beginning of our story about how to choose a broker, we would like to note that an issue of reliability is the most important. Even the most successful strategy for trading and informed decisions will not bring the desired profit if the brokerage company cancels profitable operations without explanation, allows slippages and requotes, does not allow to withdraw earnings for weeks and fails to 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 a suitable broker, you must take into account both customer reviews and the availability of licenses from regulators. In most cases, any reliable broker that has licenses from regulators endeavors to provide high quality and good conditions for trading. This is not surprising, because in most cases, traders can submit complaints to the regulatory authorities. Those, in turn, have the right to impose various sanctions on unreliable companies, ranging from fines to revocation of licenses. When deciding on how and which Forex broker to choose by the criterion of reliability, it is certainly worth mentioning the need to take into account the experience of the company on the market and reviews of professional traders about its work.
2. TRADING TERMS
In most cases the newcomers who initially have a very limited budget cannot afford to choose a large reliable brokerage company that has reputation on the market and licenses from authoritative regulators. This is why in this case we recommend to search for the optimal balance between the attractive trading terms and good reputation of the intermediary.
When analyzing the issue of how novice traders make the decision on choosing a broker for their work, it can be concluded that in most cases they primarily pay attention to the size of leverage and a minimum deposit. Such an approach can hardly be called the best, because it is unlikely to bring any success. Large leverage can allow to either multiply the deposit in times during the day or siphon off all the profit in one transaction at a strong change in the market.
Talking about how to properly choose the Forex broker for a novice trader, we would like to note that maintaining a low level of the minimum deposit is an excellent opportunity to learn how to trade: in this case, you can feel the atmosphere of full-fledged trading with low risk. Besides, a reliable broker in most cases provides demo accounts to its customers as a platform for training and testing trading strategies.
Before you finally choose a professional broker, you must pay attention to hidden commissions. More often, brokerage companies decide to choose and set not only spreads for opening positions for their customers. It may also be an additional fee for the withdrawal of funds, provision of services and so on. This point is crucial if you want to know how to properly choose the Forex broker and not to lose money earned in the future.
Each brokerage company independently decides on how to deposit and withdraw funds for their customers, as well as on the limit on the daily deposit/withdrawal. Almost all brokers today support the ability to use transfers to bank accounts and credit cards to replenish and withdraw the deposit. Moreover, in practice, you can almost always select a suitable broker for trading who will support the payment system convenient for you (Skrill, Paypal, VISA, MasterCard, etc.).
Most often, minimum fees are applied to such payments, and the money is properly credited to your trading account within minutes. It should be noted that some reliable and good brokers support the automated withdrawal. Before you choose a broker, you should assess your need for this useful service with the companies you are interested in. This is quite an important feature that allows you to automatically transfer the money earned on the Forex market to your e-wallet virtually without any restrictions.
4. TRADING TERMINAL
We recommend that you choose a broker that offers functional and understandable trading platform supporting the most popular and functional terminals. Availability of the web version of the trading platform and mobile apps for trading can be considered as an important advantage that motivates to choose such a professional broker. Of course, in most cases, these types of Forex trading platforms have a more modest functional for both performing a good technical analysis and using trading signals and other tools. However, in any case, this is an important advantage. It allows you to more accurately understand how to properly choose a broker.
5. CUSTOMER REVIEWS
Comments and opinions of the trader's peers about the work of a specific broker are in most cases crucial for beginners on the Forex market. However, the approach to their assessment should be critical. Often, novice traders can blame even the most reliable and good broker for their failures instead of themselves, because it is the user who decides how to trade and which strategy to choose for work. Quite often, brokerage companies also pay for promotional reviews. Do not trust everything you read. In other words, it is necessary to choose and account in trading only really helpful advice from impartial and experienced traders.
6. SERVICE, BONUSES AND SPECIAL OFFERS
Before you choose a reliable and good broker, it is necessary to evaluate its quality of customer service. Availability of skilled support around the clock on the phone, Skype or e-mail today is no longer an advantage but an essential requirement for any successful Forex broker. In most cases, with the competent formulation of the question and adequate communication, the support service of any brokerage company can provide complete answers to your questions of any kind.
Talking about how to choose the perfect broker, special attention should be paid to bonuses, promotions and other means to encourage customers. For example, in most cases, you can receive an additional bonus of 50 to 200% of the amount you first deposit to your account, depending on the amount of money credited. In addition, an important benefits is provision of a variety of analytical services and tools for trading free of charge. Now you really know how to properly choose a broker and which reliable intermediary to use for work.
It might seem that it is extremely difficult to choose a good broker and this task is very time-consuming. In fact, this statement is close to reality. However, if you follow our recommendations, you can find a Forex brokerage company that meets all your requirements. We sincerely hope that our recommendations can help both beginners and experienced traders choose the best broker for trading.