Choosing a Forex Broker

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Every person who wants to try his hand at trading currencies on Forex must, at the beginning of his career as a trader, choose a broker with whom he will work in the future. The profitability of trading in financial instruments largely depends on how correct the decision will be. To date, there is a huge number of different brokerage firms, among which there are many scammers. And therefore, the choice of a broker for a person inexperienced in such matters is a certain difficulty.

To make this task easier, let's try to highlight the main factors that should be considered when making a final decision.

Reputation

The best option would be a well-known company with a solid history of work in the market. Usually, companies post information about their history on their websites, and finding this information is not difficult. In addition, these data can be found in press publications, blogs and other sources. You can alsoview various ratings that are based on the feedback of traders. Although they have differences, you can limit yourself to the top ten, where the same companies usually fall.

Availability of commissions

The choice of a forex broker also depends on the size of the commission (spread) that he sets for opening each trading position. Its value usually varies from 2 to 6 points (pips), depending on the instrument chosen for trading. In addition, each broker charges a commission for transferring a position to the next day - a swap. In medium-term and long-term trading, a large swap size can bring significant losses, and therefore this nuance should also be taken into account.

Trading Platform

Metatrader is the most popular, but still far from the only tool for Forex trading. Some brokers develop their own software, which has additional functionality, attractive design, convenient charts, a larger selection of financial instruments, forecasts, etc. The platform is essentially a virtual work office of a trader, and it should be as comfortable as possible in all respects.

Feedback

The quality and promptness of advice also has a great influence on the choice of a broker. Forex is a very dynamic market and anything can happen in trading: the lights turn off, the laptop system crashes, or the smartphone runs out of power. And at this time, you need to close a profitable operation, since the priceturns in the opposite direction. To protect yourself from such situations, keep your broker's phone at hand.

Tools for trading

The wider the range of currencies, the more room for maneuver. When choosing a broker, it is better to give preference to those companies that provide an opportunity to work with precious metals, especially with USD/XAU (dollar-gold) and USD/XAG (dollar-silver) pairs. The gold rate makes it possible to predict the dynamics of the dollar, a currency that is involved in many trade transactions.

Deposit-withdrawal of funds

A good broker has many options for depositing money and withdrawing profits from the account. In addition, you need to check if there are fees involved. Many companies provide a bonus of 20-30% of the deposit amount for promotional purposes.

Website

The choice of a broker also depends on the quality of his site. Fraudsters usually save money on their development, but for reputable companies they grow into real portals, with a forum, news, videos, analytics, training and contests.

Here, perhaps, are all the main criteria for the best choice of a company with which you will work. Successful trading!