How to choose a reliable Forex broker
Carefully study what opportunities the broker is ready to provide you with, compare them with your own ideas about trading on the Forex market. You need to understand that even a truly reliable broker will not be able to provide you with a good result if its trading strategy does not match your expectations. Remember also that a good broker will always provide you with competent technical support. When choosing, pay attention to how clearly certain actions are explained to you, how quickly the broker responds to your requests to solve problems.
Broker information
Some things announced by brokers are just a “cover” and a distraction for clients. A novice trader must distinguish between truly important information and unnecessary information designed to mislead.
What you should pay attention to:
- primarily on things related to money. How to withdraw funds and how to replenish your account, what payment systems the broker uses, its commissions.
- organization that regulates the broker. In what country does it operate, is the company on the list of this regulator, is the license itself active.
- age of the company. Sometimes unscrupulous brokers work for years, but in 90% of cases the considerable age of the company indicates the quality of the services provided.
- specifications. The trading platform, your personal account and methods of communication with support should be accessible and understandable.
Extra information or bluff:
- extensive advertising campaigns on social networks. Confirms that the company has a large advertising budget, but does not necessarily confirm that the broker works honestly. Sometimes thousands spent on advertising disguise unscrupulous practices and are aimed at distracting customers from negative reviews.
- numerous awards, diplomas and titles. They don't always talk about the quality of a broker's work. A successful company does not need to emphasize its achievements - customers are already aware.
- training programs. This is far from an indicator of a bad broker, but promises to teach Forex trading in a week seem ridiculous. Focus on free training courses.
- Forex broker rating, getting into the top brokers when compiling a rating. As already mentioned, ratings of Forex brokers are unlikely to help you choose a broker that suits you.
What makes the best Forex brokers stand out?
Trusting the first advertisement for brokerage services you come across is dangerous, or at least unwise. This specialist should become a powerful support and faithful assistant in trading, so his choice should be approached critically. The fate of a multi-thousand financial transaction often completely depends on the support that a broker provides to a client. So, what makes the best Forex brokers stand out? Favorable trading conditions - you say. This is correct, but far from the only selection criterion. Below we will list the signs by which you can distinguish a true professional in this matter.
How to choose the best Forex broker: 11 selection criteria
Let's outline an algorithm for choosing the best Forex broker: 11 selection criteria will help us with this. So, you have a professional in front of you if he:
- Has been successfully operating on the market for 5 years or more.
- Submits to the country's foreign exchange regulators.
- Serves a fairly large customer base.
- Has a high rating.
- Has positive reviews from traders.
- Does not require a high commission for each open session.
- Offers your choice of fixed or floating spread.
- Sets opposite swap values for different trades.
- Provides its traders with comprehensive support.
- Uses advanced software.
- Protects traders' accounts from hacking.
How to choose a broker with good customer support?
Let’s take a closer look at the “trader support” criterion. It can be either purely informational - say, daily publication of news on the world foreign exchange market - or technical, because you are a client of the system. But how to choose a broker with good customer support? It's easy: pretend you're having difficulty navigating and ask for support. If you receive prompt and intelligent assistance, this will be a sign of the authority of the system. Another good sign is if you are asked to send a scanned image of your passport. This will show that you take the security of your account seriously.
How to choose a broker with good trading conditions?
Conditions are different. It all depends on your intended method of trading. Let's say, if you are a supporter of predictable, well-thought-out operations, it is better for you that the spread be fixed rather than “floating”. But what about those who plan to trade not during the current day, but hold positions for several days? How to choose a broker with good trading conditions? The rule here is this: give preference to a specialist who provides the opposite swap rate for various types of transactions. An even more win-win option is to find a specialist who can offer a swap-free account.
Leverage
The amount of leverage is also an important criterion that must be taken into account when choosing a broker. Leverage can range from 1:1 to 1:1000, depending on the broker. Each trader chooses the leverage value individually, taking into account the trading strategy and the size of the deposit. There are brokers whose leverage can change on weekends.
How to choose the right leverage size? It is quite clear that the larger the leverage, the greater the profit received. This is for profitable trading. But with unsuccessful trading, the size of the losses also increases. Some experts advise considering the following when choosing leverage:
- for aggressive trading, a value of 1:500 and higher is suitable;
- for more conservative trading, a leverage of 1:100 or 1:200 is suitable;
- for investing you need to choose the minimum from 1:2 to 1:10
Forex broker reviews
Where can I find truthful reviews about Forex brokers? You should not trust unofficial forums - a good professional may well be denigrated by competitors. As a rule, reliable information is published in publications that publish broker ratings. You should be wary of the following information from traders:
- the specialist closed or opened an order without notifying the client
- the client received an unmotivated refusal to withdraw funds
- The system is characterized by inconvenient navigation and constant communication interruptions
- there are facts of failure to fulfill any obligations of the broker to clients
Based on this information, you will be able to form the most objective impression of the provider on the Forex market - who is it?
With brokers the picture is clear. But who is the “dealer” in the Forex market? This definition is given to a person or firm that enters into commercial transactions not on behalf of clients, but independently. This is a full-fledged market player. His competence includes quoting securities and conducting transactions with other exchange participants. Dealers, unlike brokers, are not involved in intermediary activities. They do not carry out orders or carry out any transactions on behalf of clients for their money. All funds, both free and invested in valuables, belong undividedly to the dealer, and he himself decides how to use them.
Advice from Sravni.ru
: A good broker always offers real market prices. But the “surprises” when working with him are real. The spread can vary depending on what news comes out at the beginning of the trading week, as well as at the close of trading on Friday. To protect yourself from risks, you may want to refrain from trading during this time.
