Trading using specialized online trading platforms is an activity that interests many people these days. Whether beginner or experienced, a trader necessarily needs a broker. Therefore, choosing your broker is not something to be taken lightly. Some critical criteria must be taken into account.
The Forex broker plays a core role in the Forex market. And it acts as an intermediary between the trader and the interbank market. The broker allows the trader to execute buying and selling transactions at the best price.
This collaboration is possible when the trader opens an account on the broker’s platform. This account must, however, be studied and validated. After that, the trader can safely carry out buy and sell actions and even withdraw the money he or she has earned from these investments.
How to choose the right broker
Good brokers have certain common characteristics. The characteristics to consider will depend on the trader’s level of experience, whether beginner or experienced.
The broker must offer you a platform that suits you.
The broker must provide you with a platform that is suitable for you. It should also be easy to use, especially for beginners. So this is something important to bear in mind before signing with a broker.
The relationship between the broker and the trader is a relationship based on trust. And therefore, the trader must be able to trust his broker.
Since the brokerage company is responsible for handling your account and capital and carrying out your buy and sell transactions, it must be able to offer you a secure platform.
The Forex broker must therefore offer you all the necessary tools to ensure security. And to avoid all kinds of problems, in principle, you should go for a licensed broker, preferably a known broker.
However, not all regulated brokers are also trustworthy. Some operate in a grey zone. That’s why the regulatory bodies perform the audits every several months to ensure the companies stick to the best business practices.
The broker must offer you a good spread.
You need to ensure that the broker you choose provides you with good spreads. The best spreads are the lowest. However, during your research, do not completely rely on the information you will receive about the broker.
Just because a broker offers you the lowest spreads doesn’t mean that when you sign up on their platform, you will benefit from those spreads all the time.
The broker should be able to provide you with a decent variety of trading account types.
A good broker should be able to present you with several varieties of trading accounts. These are, for example, standard and VIP options depending on the amounts you are willing to trade.
The Forex broker must therefore be able to give you the opportunity to choose your leverage.
Since the Forex market is a market that sometimes trades with leverage, the broker must be able to let the trader choose the leverage. The leverage effect allows the trader to have a greater investment capacity.
The broker must be able to offer you investment in various markets.
When looking for a broker, look for those who offer you investment in a variety of financial markets. It would be great for you to be able to invest in several markets at the same time. The broker should be able to offer you markets such as cryptocurrencies, commodities, stocks, ETFs, bonds, or indices.
The broker must be able to offer you a demo account if you are a beginner.
If you are a rookie, make sure the broker offers you a demo account. The demo account enables you to practice with zero money invested until you gain more experience. Otherwise, it would be very unfavorable for you to start trading directly and without any experience. It is a very important point if you are a beginner.
2018 ·