Which broker to choose for forex trading?
Forex trading is becoming more and more popular every day. And it is not surprising, because you can make good money trading at the exchange market from the comfort of your home.
Unfortunately, in any area where good money circulates, there are always cheaters. The Forex market is no exception. With increasing popularity of electronic trading at the exchange, brokerage centres and brokers, who offer their services to traders, appeared like mushrooms after the rain. Not all brokerage companies fulfill their obligations in good faith, so you can easily lose your funds. Right now let's try to answer the question: "Which broker to choose for trading at Forex?" and let's analyze the most important moments you should pay attention to before you open a trading account with any company.
How to choose a "right" forex broker?
- Pay attention to the broker's reputation, how long it works, read reviews on the Internet at various forex forums. As a rule if the broker has an unfair reputation, the Internet community reacts with negative feedbacks.
- A reliable broker always has a regulator and a license. That is why, when choosing, you should find out who regulates the company and whether it has a license for rendering brokerage services. All this information can usually be found on the broker's website.
- An important point is the support service because different situations may arise which need to be resolved very quickly. A reliable company always has a staff of consultants ready round the clock to solve any problem.
- Choosing a broker, you should pay attention to the trading conditions: what types of accounts are available, the amount of leverage, spread, what commission the company charges for its services, swap. Take leverage, for instance. Many firms now offer their customers to open accounts with 1:1000 leverage, which is a lot, but it is acceptable and you can comfortably trade under such conditions. If you are offered to open an account with leverage 1:2000 and more, you should think over the reliability of the broker, because higher leverage adds risk, which brokers prefer not to mention. All the terms can also be found on the broker's website.
- Withdrawal time. A conscientious company always pays the earned profit on time. There are brokers where the money is withdrawn in a few minutes but most brokers withdraw the money from one hour to several days.
- Traders work on the trading platform, so it is important to pay attention to the software. You can start by opening a demo account and use it to trade: you can check how fast the orders trigger, whether the pending orders work, whether there is no slippage, whether the terminal freezes. But you should know that unscrupulous brokers have very different conditions of trading in demo and real accounts.
As you can see from all written above the choice of a broker for forex trading plays an important role because one can make money on the currency market only with the help of a reliable broker, and of course with experience and knowledge, but that is a separate subject.