Selecting a FOREX broker
After you’ve had enough fun with micro-bids and work out your own tactics you will perhaps want to start real trading. To do this, first of all you will have to select a broker/dealing company midst the hundreds out there. Unluckily there are only a few of them that are worthy of your attention.
With the purpose of make the right choice of broker (in other words, your future business partner) you should concentrate on the following statements:
• The website of a dealing company should be reliable and decent, without unnecessary decorations. The website’s wording and use of language should be grammatically and syntactically correct. It should deliver a large selection of study-texts, an FAQ page and a simple navigation system. The “About Us” page should be detailed and cover all necessary licenses and permissions.
• The license
License of a firm must prove all investment services of the broker.
• Contact Us division: must show detailed about the address of the company’s offices and their phone numbers.
• You should study the contract very systematically – as seriously as your desire to profit from the Forex market. It is very unpleasant to lose in the exchange game but it is much more unpleasant or even shocking to win a fortune and then lose it because of having been careless while reading the first contract.
• Browse through internet forums and news, use search engines and other independent sources to collect all possible information about your potential broker. But remember that many people waste their time chatting and repeating rumors that are often wrong or untrue.
The list above should be enough for you to go to the next stage.
Trading conditions
Let us imagine that you’ve selected 10 working brokers out of 100 along with the standards described above. How would you restrict the selection more? Very easily: find out their trading conditions and then estimate the profit 32 you might earn based upon them. So, figure out the answers to the following questions:
• How obviously are the trading conditions illustrated on a broker’s website?
• To what level do the conditions request to you?
• How large is the range of currency pairs they offer? What instruments do they offer? What is the spread? Are there any further payments you have to make? Do spreads change and if yes under what conditions? Will the broker notify you about the change of spread?
• What are the necessities applied to margin leverage, deposit and swaps? What will happen in the case of unpredicted advances?
• What are the money transferring fees?
None of the standards on the list above are so important they would keep out a broker on their own. Apart from, possibly, the first one. This is because unclear or uncertain trading conditions are the cause of unpredicted mistakes and problems, and you would be well advised to keep out such a broker from the list automatically. In the end it’s all about your comforts.
Comfort of use
After looking at the security and profit aspects of the brokers you’ll perhaps only have 2-4 brokers left on the list. To limit the list down more you need to think next of your personal comfort:
• What are the conditions of charge and withdrawal money?
• What trading terminals and applications are available? How consistent are they? What are their structures?
• Does the broker have limited working hours or can you contact them 24/7?
• Which languages are supported by your broker?
• Do you like the color range of the broker’s website?
Use as many factors as you need, and be choosy until you end up with just one broker. Then start working with him.
You can find a list of our recommended forex brokers form Fxervin website.