Tag: Broker Selection

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Forex Brokers

Top 10 Tell-Tale Signs You Need to Get a New Broker

If you are a trader then you have probably had an experience with a number of different brokers, some would have been good to you, others would have been not so good. No matter which broker you are with, there will be little things that you notice that may make you think about changing brokers […]

If you are a trader then you have probably had an experience with a number of different brokers, some would have been good to you, others would have been not so good. No matter which broker you are with, there will be little things that you notice that may make you think about changing brokers […]

If you are a trader then you have probably had an experience with a number of different brokers, some would have been good to you, others would have been not so good. No matter which broker you are with, there will be little things that you notice that may make you think about changing brokers and looking for a new one. So we are going to be looking at 10 tell-tale signs that you need to get a new broker. It is important to note that not any one solo broker is perfect, there will always be things that another broker does best, you need to weigh up the pros and cons of the one that you are using to work out whether a new one is actually needed. These are simply some of the things to look out for that could potentially go into the cons section of that list.

Can’t Contact Support: At times we all need help, maybe we are unsure of something and we want to ask a question, sometimes something might go wrong, with a trade or with a deposit. When these things happen we will want to get in contact with the support tea, unfortunately, it is not always that easy. In fact, we have been with some brokers where we have tried and tried to get in contact with the support team only to find that we simply cannot get in contact with them at all. If this happens to you, then it is a good idea to change broker, the support team is meant to be there to help, if you cannot contact them, then you are pretty much on your own.

Unhelpful support team: Similarly to above, the support team is there to help, so there is nothing worse than getting in touch and they simply aren’t bothered or do not know how to help. We are contacting them because they should know what to do or how to solve things with their own broker. If they do not, then it doesn’t give a good impression about the broker. What else might they not know about? Most likely time to get out of that broker if they are not helping you with what you need.

Not enough leverage: As traders, we love to trade with leverage, it increases our profit potential tenfold, but also our loss potential, so you should use it with caution. There has been a shakeup recently where a lot of brokers have reduced their leverage, so if you are used to trading with something like 500:1, your broker may have now forced you down to 30:1. If this is the case, and you wish to continue with huge leverage, then you may need to look for a new broker that will still offer you the higher leverage.

Spreads are too high: Spreads are one of the ways that a broker makes their money, some of them add a little bit onto the spreads in order to make money. That is normal and not something to be concerned about, but what should be checked is how much they have added on, if it is extremely high, such as the EURUSD pair being at 3 pips, then it would be better to find a cheaper one. You should also look out for brokers that have a commission and then add to the spreads, which is double costs for you, something to avoid.

Commissions are too high: Commissions are the other way that a lot of brokers make their money, this is more prevalent on ECN and STP brokers where the spreads are kept low. Some brokers offer really good commissions at or below $6 per lot traded, but there are some that go as high as $20 per lot traded, if that is your broker, you are losing out on a lot of your profits, paying the majority of it back to the broker. If your broker has a commission higher than $6, then you should probably look for a new one that can save you quite a lot of money.

Slow servers: There is nothing worse than finding the perfect trade, placing the trade, and then nothing, it takes a few seconds or in the worst-case scenario, even minutes for the trait to be placed, meaning that you missed your optimum entry point and could potentially lose out on some of the profits. This Can also happen with stop losses, the price is drooping it gets to your stop loss, but the server then takes a few seconds to close the trade, buy that time, the price has moved further down past your stop loss. If this happens on a regular basis, we would suggest looking for a new broker.

Deposit and withdrawal fees: Some brokers are still charging for deposits and withdrawals, this is something that happened a lot many years ago but most brokers have moved away from the practice. The worst are deposit feels, we are still not sure why you would be charged to give your money to the broker. If your broker is charging you deposits or withdrawals then you are basically throwing away some of your profits, they make their money on commissions and spreads, you do not need to be giving them any extra money.

Forced bonuses: Some brokers have a practice of forcing a bonus on you, a bonus sounds like a good thing, but the terms that come with them are often a little crazy. Things like needing to trade 10 lots to convert $1 of bonus money into real funds. If that was just the bonus then it could be fine, but many brokers do not allow you to withdraw your deposit until you have converted the bonus into real funds, which would take thousands of lots, meaning that you have very little chance of actually getting you money back out. If a broker tries to force a bonus on you, quickly walk the other way.

Odd chart behaviour: Sometimes things don’t quite add up on the charts, maybe the price is jumping when it isn’t on any other broker, or your stop losses are conveniently being triggered before the price reverses. These are things that some of the more dubious brokers do, the market makers who are actually trading against you. If there are strange behaviours on the markets then the broker could be influencing them and this is a sure sign that you should be getting away from that broker.

Requesting more deposits: Some brokers have a habit of calling you up asking for you to deposit more funds, or if you have not yet deposited, to make a deposit. If your broker does this, run away as fast as you can, those are clear signs that your broker is just looking for your money and it is what a lot of scam brokers do. So if you get a call or email asking for money, do not deposit and close that broker’s account straight away.

So those are 10 of the tell-tale signs that you need to look for a new broker. Remember, as we mentioned before, not any one single broker will be perfect, you will always find things that could be done differently with the broker that you are using. That doesn’t mean that you need to jump ship though, work with your broker to see if they can change things, some are willing to do that, but if your broker has quite a few of the things above, then you should probably start looking for a new one.

Categories
Forex Brokers

Choosing a Forex Broker? Here’s What You Need to Know…

When looking to get into Forex trading, the new trader is bombarded with massive amounts of ads, offers, and, of course, online forum noise. In this article, I will try to analyze some of the most important issues to consider when choosing a Forex broker. After all, the most important function of a Forex broker […]

When looking to get into Forex trading, the new trader is bombarded with massive amounts of ads, offers, and, of course, online forum noise. In this article, I will try to analyze some of the most important issues to consider when choosing a Forex broker. After all, the most important function of a Forex broker […]

When looking to get into Forex trading, the new trader is bombarded with massive amounts of ads, offers, and, of course, online forum noise. In this article, I will try to analyze some of the most important issues to consider when choosing a Forex broker. After all, the most important function of a Forex broker is to enable it to trade with the liquidity provider, and at the end of the day, most features work similarly. However, that does not mean that there are some things I should pay close attention to.

Are they all regulated?

Surely the most relevant thing to keep in mind is whether the Forex broker you are choosing is regulated or not. In addition to that, the place where they are regulated is also important. Unfortunately, not all regulatory bodies are the same, and therefore, some traders are absorbed by reputable brokers because of this reason alone.

The regulation allows the trader to feel somewhat protected, as there is a government agency that is paying attention to what the Forex broker is doing. Years ago, when Forex trading was something new to retail traders, there were many nefarious companies out there willing to take their money.

Since then, we have seen an adjustment and maturation of the industry, so almost all Forex brokers are regulated at this point. If they are not, it is a great red flag and must be avoided at all costs.

Apart from this, the standard regulation in a country like the UK or Germany is very different from regulation in a country like Belize. Some of the stricter regulatory regimes can be found in the UK, the US, the EU, Australia, and Japan. In short, countries with more advanced economies often have better regulatory protections for the retail Forex trader. It is important to note that some countries, such as the United Kingdom, offer deposit protection insurance, which means that even if your agent goes bankrupt, the government will eventually reimburse you for the balance of your account.

What products do you offer?

Obviously, you need to know if the broker you are interested in offers the markets you want to trade. For example, if you want to exchange the CAD/JPY pair, the broker must offer it. Not all brokers offer all currency pairs. There have been brokers I have seen offering only 10 pairs, but I have seen other brokers offering several hundred. In general, larger brokerage firms will offer at least 25 pairs, quite often 40. Some of the most institutional liquidity and brokerage providers may offer several hundred, giving you the opportunity to engage in exotic trades. Make sure you can get the product you are looking for before completing the paperwork.

ECN or operating table?

An electronic communication network, or ECN, links orders directly to each other, making the market transparent and fair. Trading Table Brokers, on the other hand, will seek to match orders or trade directly with you. A reputable broker will follow the rules and regulations of the regulator and treat it fairly regardless. It may be considered foolish to say this, but experience has dictated that there is no difference in the type of brokerage I choose, although the differentials may vary greatly between these two different models. Normally, if you get an ECN Broker to facilitate your order, you will be charged less and extended, but you will be charged a commission. One area for which ECN works best is scalping, as it allows quick entry and exit operations and you don’t have to worry about any desktop delays. If you want to scalp, keep in mind that many brokers do not allow scalping-style trading, so be sure to check it out.

Analysis

Some brokers offer expert analysis, while others do not. It all comes down to whether or not you need some extra help to form trading ideas, or whether you’re comfortable trading on your own. However, beyond that, there are many places online where you can find a lot of analysis for free.

Extras

Some brokers will go beyond the usual calendar and announcements and offer many extras. Sometimes those are deposit bonuses, sometimes they’re webinars or even trading education. Again, all this can be found free online, but some Forex brokers have pretty good educational sections for example. Imagine something like buying a car, you can opt for the reduced version, which is always cheaper, or you can buy a more expensive model that comes with all the accessories as standard. Brokers are a lot like this.

CFDs Offered

Let’s not forget the CFD market. Unfortunately, CFDs are not available for trading everywhere (as in the United States). However, most of the world allows CFD trading, and this is something to pay attention to. If you have the ability to conduct Forex trading, why not do index trading or crude oil trading? This gives you the possibility to trade with the world in a single account, which, of course, has a great advantage if you understand the correlation between markets. One of the main advantages that the rest of the world has over the United States is the ability to carry out trading in these markets since it is not necessary to enter through a full futures contract to make trading with natural gas, You can just put a small amount of margin.

Longevity

Just like any other business, the better you treat your customers, the longer you stay alive. That said, as a general rule, you should feel a little more comfortable with a broker that has existed for 10 years compared to the one that just started this year. However, if they are regulated in the right sense and based on a sound and financially mature country, it should be fine. Be sure to read as many reviews as possible, but keep in mind that some of them should be taken with a little salt, as trading is emotional, and some people will review Brokers negatively after losing money (which is not the Broker’s fault). In general, however, you can see through these negative publications, as they tend to be a bit exaggerated.

In Conclusion

The best way to choose a Forex broker is simply to use common sense. There are some things I would consider about brokering before depositing. Are they regulated? If so, where? Do they offer demo accounts? Do they have the coins I’m looking for trading Basically, you think that, if the answer to any of these basic questions is “no,” you should keep looking for another broker.

Categories
Forex Brokers

Broker Selection Doesn’t Have To Be Hard…Read These Insider Tips!

Anyone that has researched Forex brokers online has probably noticed that the potential choices seem almost limitless. In today’s world, online trading has become more of a phenomenon and those numbers increase daily. Many are legitimate options with good benefits, while others may be scammers. So, how does a beginner, or even an intermediate trader […]

Anyone that has researched Forex brokers online has probably noticed that the potential choices seem almost limitless. In today’s world, online trading has become more of a phenomenon and those numbers increase daily. Many are legitimate options with good benefits, while others may be scammers. So, how does a beginner, or even an intermediate trader […]

Anyone that has researched Forex brokers online has probably noticed that the potential choices seem almost limitless. In today’s world, online trading has become more of a phenomenon and those numbers increase daily. Many are legitimate options with good benefits, while others may be scammers. So, how does a beginner, or even an intermediate trader determine which is which? Our detailed guide will help traders to decipher the difference between a great option and a costly mistake. This guide will cover the following sections:

  • Regulation
  • Account Types
  • Minimum Deposit
  • Trading Platforms
  • Leverage
  • Available Assets
  • Fees
  • Spreads
  • Funding Methods
  • Demo Accounts
  • Bonuses and/or Promotional Opportunities 
  • Customer Service

Regulation

Many of the most legitimate brokers out there are regulated by major authorities, like the Securities and Exchange Commission (SEC), the Financial Conduct Authority, or another regulatory body. Companies need to deal with strict rules & regulations when regulated with a certain authority, so this is a good sign that things are on the up and up. However, we do want to point out that US residents may need to lower their standards somewhat when it comes to regulations. The United States imposes strict regulation laws, meaning that there are fewer options out there for those clients, so using an unregulated, but highly regarded brokerage will suffice. 

  • When looking at a potential broker, be sure to check towards the bottom of their website for information related to their regulation. 
  • It’s a good idea to use Google to be sure that the supposed regulatory authority is legit. 

Account Types

Some brokers cater more towards clients that can make a larger deposit by offering more benefits and special perks. For example, fee-free withdrawals may only be offered to certain accounts that require large deposits. If you plan on making a significant deposit, then one of these brokers could be the best option, since you’ll get to take advantage of the extra perks. On the other hand, beginners that don’t have a big deposit will do better with brokers that offer Mini/Micro/Cent/Standard accounts without penalties like insane spreads. 

Minimum Deposit

How much money do you have or want to invest? The answer will differ for everyone, as some may only want to start with $100 or less, while others may have thousands to deposit. Many brokers out there will allow traders to start with a deposit of just $5 USD or less, which allows traders to test the waters before making a larger deposit. Others ask for a larger amount to start with – $100 is about average for a standard account type. Better accounts, like Premium/Platinum, etc., usually ask for $1,000 or more. VIP accounts are often more expensive than that. However, you should note that Micro/Mini/Cent accounts should lean towards $100 or less. Any broker that asks for $500+ for one of these account types is taking advantage of entry-level traders. 

  • Note that any broker’s minimum deposit requirements should be advertised clearly on their website. 
  • Try checking out the ‘Account Types’ page on the broker’s website for the minimum deposit list if there is more than one account offered. Any broker that isn’t transparent about this is probably trying to trick you into making a hefty deposit.  

Trading Platforms

MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are the most popular and most commonly available trading platforms out there. Most brokers offer one or both, but some only provide less attractive trading platforms. 

  • If MT4/MT5 is not available, then be sure to research the available platform(s) to be sure that it is a decent option. 

Leverage

This one really comes down to personal preference. Some regulators restrict leverage to 1:30, while a few brokerages offer insanely high leverage of up to 1:1000. Higher leverage increases risks, but it can pay off with higher returns. Professionals tend to prefer a leverage of 1:100, while beginners should probably stick with this option (or lower). This comes down to personal preference, although it is always nice to have a little room for growth.

Available Assets

For this category, you’ll need to ask yourself what you’re interested in trading. Are you happy with a selection of basic currency pairs, or are you looking for something more exotic? Do you want to trade commodities like agricultural options, metals, stocks, bonds, oil, cryptocurrency, etc.? Each broker will offer a different selection of assets. The most basic options would include around 36+ currency pairs, along with the metals Gold and Silver. Others may offer hundreds of options in different categories. Once again, this comes down to personal preference, as extra options don’t matter if you don’t plan on using them.  

Fees

There are several fees that may be charged by any given broker:

  • Deposit/withdrawal fees
  • Fees for making a withdrawal with no trading activity
  • Commission fees
  • Miscellaneous fees, like inactivity charges or account maintenance fees

Many brokers offer fee-free deposits and withdrawals or have low withdrawal fees without charging miscellaneous fees. Others tack on extra charges at every turn, so be sure to check on this. Also, commission fees will vary, or may not be charged at all. This usually differs based on one’s account type and the associated spreads. Lower spreads typically result in higher commission fees to balance things out so costs will need to be compared.

Spreads

Spread, or the difference between the selling and the asking price is a typical charge that is one of the main ways that Forex brokers make a profit. Traders really need to be careful when selecting a broker and account type, as some offer outrageous spreads. The industry average is about 1.5 pips on the pair EURUSD – anything better than this is a good option, while anything higher than 2 pips is not attractive. Be sure to compare a few options based on your starting deposit to get the best deal. 

  • Remember that lower commission fees may result in higher spreads, so be sure to check both if spreads do seem high. If both are high, look for another broker. 
  • Don’t be surprised if spreads on other instruments are slightly higher. The EURUSD pair usually has the lowest spread available. Spreads on metals, exotics, and other assets will vary more significantly.  

Funding Methods

The most traditional method for funding a brokerage account would be bank wire, however, the method has become somewhat outdated, making cards the preferred method for many traders. Others have moved on to e-wallets or cryptocurrency. Each broker will only allow certain funding methods, so you’ll want to review those to be sure that one is available that works for you. Different funding methods have specific advantages. For example, bank wire is more secure, while cards usually allow for instant deposits. Fees also play a significant role here. 

Demo Accounts

Most Forex brokers offer risk-free demo accounts. These accounts simulate the live trading environment and allow traders to practice using a virtual deposit. Some added benefits include the ability to check out the broker’s conditions (like spreads and commissions) in an environment that mimics a live account. If your potential broker doesn’t offer these, then it could be a bad sign. 

  • If you’re interested in any broker that doesn’t offer demo accounts, try researching user-reviews online to be sure that they are trustworthy.

Bonuses and/or Promotional Opportunities 

This category is more like an extra perk, not something that should be on your absolute must-have list. Bonuses are usually related to deposits, for example, a 50% deposit bonus added to a $100 USD deposit would equal $150 in one’s trading account. Promotions tend to revolve around Refer-A-Friend programs, loyalty-based rewards, contests, and “free” items that are typically earned by reaching a certain trading volume. Having the option to earn extra money is always a perk, so be sure to check to see if any potential broker has these available.

  • Be sure to read the terms & conditions for any available bonus or promotion to ensure that the reward is actually obtainable. 

Customer Service

You’ll want to be able to contact support quickly should you run into a funding issue, have a problem with a trade or your account, or for any other reason. For these reasons, many brokers offer LiveChat as an instant contact option directly from their website. Smaller brokerages sometimes limit support to phone calls and/or email, and you won’t find direct phone numbers listed on every broker’s website. Contact hours also differ, with some brokers being open 24/7 and others operating on more limited 9-5 weekday hours. The availability of customer support can also give you an idea of how long withdrawal processing may take with a specific broker. 

Conclusion

We’ve covered a lot of facts in this article. Here’s the quicker, more condensed version:

  • Check the regulation status or conduct research to be sure that the broker is legitimate
  • Look at available account types to be sure a reasonable one is available for your planned deposit amount.
  • Check to see if available leverage options will work for you. A choice of 1:100 and up is ideal.  
  • Visit the ‘Products’ page on any broker’s website to check available assets. If one isn’t available, ask for support or look elsewhere on the site. 
  • Check for associated fees like funding costs, inactivity fees, and maintenance fees. Also, look at commission fees to be sure that they are reasonable.
  • Look at the broker’s associated spreads, which will hopefully be laid out transparently on the website. Remember that 1.5 pips is about average on the pair EURUSD.  
  • Funding Methods: How many deposit/withdrawal methods are available? Make sure there is one that you can work with without large transaction fees.
  • Does the broker offer demo accounts, or provide any extra perks like bonuses and/or promotions?
  • Check out the website’s customer service page to review support hours and contact methods. If email is the only option, getting in touch with an agent may be a hassle.
Categories
Forex Brokers

This Is EXACTLY What You Should Look For When Selecting A Broker

Getting the right broker for you is one of the major stepping stones in forex trading, it can be seen as a big step and there are so many of them out there, thousands, in fact. It can be pretty hard to work out which one to go for. We have set out some ideas […]

Getting the right broker for you is one of the major stepping stones in forex trading, it can be seen as a big step and there are so many of them out there, thousands, in fact. It can be pretty hard to work out which one to go for. We have set out some ideas […]

Getting the right broker for you is one of the major stepping stones in forex trading, it can be seen as a big step and there are so many of them out there, thousands, in fact. It can be pretty hard to work out which one to go for. We have set out some ideas of the things that you should be looking for, to ensure that they suit what you need and to ensure that they are the right broker for you.

One thing to keep in mind, your choice is certainly not final. More than just a few traders have changed their brokers part way through their career, many jump around then quite a lot at the start in order to find the one that is right for them, so don’t worry if you do choose one and then want to change, go for it. Do what you need to do in order to find the one that is right for you. So let’s take a look at some of the different aspects of a broiler that we need to look at.

Deposit Limits

This is the main thing that makes a broker accessible or not, there are of course after things, but if a broker is requiring an initial deposit of $10,000 then if you do not have that much, you simply won’t be able to join and sign up with that broker. If you are wanting to start with only $500, then you will need to try and find a broker that allows you to start with just that amount or even less. This is becoming less and less an issue as time goes on with many brokers lowering their initial entry requirements to allow more people to trade, trading is far more accessible now than it was a few years ago.

Minimum Trade Size

This has caught a few people out, the minimum trade size available in trading is 0.01 lots on a standard or ECN style account, there are lower of course on cent accounts, but very few people use those sorts of accounts these days. If you are starting with a lower balance under $1,000 then there is no point joining a broker that requires you to trade with a  0.10 lot size or more as a minimum, this will mean that you cannot employ proper risk management. Many brokers now allow for trades as low as 0.01 lots, but it is important that you keep an eye out just so you do not get trapped with a broker or having to pay fees in order to get your money back out.

Leverage Offered

Traders love to trade with leverage, brokers seem to be offering more and more as time goes on, higher is not necessarily higher, but for certain strategies, you do need slightly higher leverage. If you are planning on using a strategy that requires a larger leverage, then there is no point in joining a broker that only offers 1:10 or 1:20, you may need one offering 1:200 or even higher depending on the strategy. So be sure to check that the brokers offer leverage matches that required of your strategy.

Regulations

Throughout the internet, you most likely would have seen a lot of people saying that you must have a regulated broker and that all unregulated brokers are scammers. This is certainly not the entire truth. There are many regulated brokers out there that have done some not so nice things to their clients, such as manipulating the markets for stop losses, then there are unregulated ones that have been the perfect broker. Regulations can give you a little bit of protection for your funds, but it certainly doesn’t make the broker perfect. So this is something that you will need to decide for yourself, whether to look for one that is regulated, which comes with certain restrictions, or an unregulated, unrestricted account.

Customer Services

Are you actually able to contact the customer service steam? There are a lot of brokers out there where you can’t actually contact the customer service team, they simply don’t pick up. There are also brokers out there which don’t have a direct line to them, making you jump through hoops, these sorts of brokers you need to avoid. You need a broker that has easy access and quick access to their customer service team, afterall you are calling for help, so it would be good if there was actually someone there to help.

Restricted Countries

Certain brokers do not let you trade with them if you are from certain countries. Before you decide to join up, look through the site, or get in touch with their support team to find out whether or not people from where you live are allowed to trade with them. The last thing you want is to go through the signup process just to find out that you cannot trade with them. These restrictions are normally set by the regulatory body or sometimes just the broker themselves as a preference.

Trading Platform

There are a lot of different reading platforms out there, the majority of brokers will offer the big ones like MetaTrader 4, MetaTrader 5, and cTrader, then there are brokers that only offer their own platforms or a simple WebTrader platform. If you are planning on using a certain robot or expert advisor, then you need to make sure that the broker that you are using is offering the right trading platform for the robot. You should also take note of the features that are available on the ones that have their own platforms, some of them can be really good, while others can lack a lot of basic features. So check that the platform you want is available before signing up.

Weekend Trading

If you are someone that likes to trade all the time or someone that likes to trade cryptocurrencies, some brokers are now offering 24 hours trading 7 days a week. If you are someone only interested in the currency side of forex, then you don’t really need to look out for this sort of thing.

Deposit/Withdrawal Methods

It is important to check that the broker that you are thinking of using allows you to deposit and withdraw with the method that you wish to use. Most allow for Bank Wire Transfers and for Credit or Debit Card deposits, but if you want to use something else then you will need to double-check. There are some brokers that only allow cryptocurrencies as a deposit option, but whatever you wish to use, there will be a broker out there that is compatible with it.

Deposit / Withdrawal Fees

Fees, not a nice thing at all, check with your broker, some are completely free while others charge for both the deposits and the withdrawals. If a broker is charging to simply deposit then they are most likely best to avoid, there is no reason to charge for this and they are simply just trying to make more money. Many brokers charge for withdrawing, this is fine, just make sure that it is not an extortionate amount which will end up eating into your profits.

Online Reviews

Online reviews can be both good and bad, that is the quality of them as well as the ratings. You need to take many reviews with a pinch of salt, there are a lot of people out there giving fake reviews or sites that are affiliated with brokers giving good reviews to that broker, but negative to everyone else. You need to use review sites that are known for being honest and not random sites on the internet. So while these reviews could potentially prove useful, do not take their word as gospel.

Peer Reviews

Peer reviews are a better form of review, these are coming from someone that you actually know, someone who has used the broker, and someone that you can hopefully trust. These do not come from random people over social media, only people that you personally know. If they have been using a broker for a while and have not had any issues, then the broker must be doing ok, so that is a good sign. Do not jump blindly though, you still need to ensure that it matches your other requirements and that it will provide you with the features that you need, but this personal endorsement is a good sign that there may be a decline break to go for.

Bonuses

Not something that we personally go for, but a lot of people, especially those without larger balances are often on the lookout for bonuses, no deposit bonuses, or deposit bonus, they both work in similar ways. The problem with them is that they often come with pretty hefty terms and conditions, ones that make it very hard to actually withdraw any of the bonus. So if you are looking for bonuses, check the terms, there are some decent ones out there but the majority are not good at all. So again, it is all about doing your research, but many often prefer to work with their own capital rather than a bonus at all.

So those are some of the things that many people look for in a broker. There are of course other things that you may like to see, you just need to remember that you need to do your research before signing up with a broker. There are a lot out there, so it may take a while, but if you find a good one, you will be set for the rest of your trading career.

Categories
Forex Brokers

These 5 Simple Forex Broker Selection Tips Helped Me Succeed

Anyone that wants to trade forex faces the same dilemma – choosing a forex broker. Make the wrong selection and you’ll pay dearly. The good news is that modern-day traders are able to learn from those who’ve gone before them, so take advantage of this and read these broker selection tips that led me to […]

Anyone that wants to trade forex faces the same dilemma – choosing a forex broker. Make the wrong selection and you’ll pay dearly. The good news is that modern-day traders are able to learn from those who’ve gone before them, so take advantage of this and read these broker selection tips that led me to […]

Anyone that wants to trade forex faces the same dilemma – choosing a forex broker. Make the wrong selection and you’ll pay dearly. The good news is that modern-day traders are able to learn from those who’ve gone before them, so take advantage of this and read these broker selection tips that led me to real success.

The task of selecting a broker should not be taken lightly, as choosing the right broker is essential for success. However, choosing a reliable broker with competitive prices is easier said than done. A quick Google search will yield endless results, so much so that combing through them can seem overwhelming. Of course, you’ll need to look at more than one option to get the best deal, just like you would for car insurance or any other important financial purchase. If you’re looking for a trustworthy broker, try following our 5 tips to ensure that you make the right choice.

Tip #1: Check that the Broker is Trustworthy

First and foremost, you need to make sure that you’re looking at a trustworthy company, or else you’ll probably never receive your withdrawals, and that’s only the start of the headaches you’ll have to deal with. The easiest way to do this is to check for regulation status through an agency like the National Futures Association (NFA) or Commodity Futures Trading Commission (CTFC) for those located in the United States. Other countries use different regulatory bodies, so be sure to do research on those to ensure that credentials are legitimate and don’t put it past a shady broker to make up these details. You can also check online to see what other real traders are saying about the broker. This will give you some good honest feedback, but do remember that some reviews may be left by the broker itself or that some ex-clients may be angry with the broker because they lost money at their own fault, so read reviews with a grain of salt and try to side more with what the bulk of the reviewers say. 

Tip #2: Research Account Details

Each broker will offer different options in each of these categories:

  • Types of trading accounts (unless they only offer one account) that ask for different deposit minimums, anywhere from $1 to hundreds of thousands of dollars
  • Separate leverage options from smaller amounts like 1:30 up to flexible options of 1:1000 or higher (many regulators restrict leverage caps, but you probably won’t need higher options as a beginner)
  • Commissions and spreads, which will affect how much it costs you to trade through the broker
  • Deposit and withdrawal options, along with the fees they will charge you for withdrawing. For example, you can withdraw for free using a credit card with some brokers, while others will charge you 7% or so. 
  • Available currency pairs
  • Promotional offers, like bonuses, contests, etc. 

Tip #3: Make Sure that Available Assets are Favorable

Some brokers will only offer the ability to trade major and minor currency pairs, while others will offer exotics, along with other options like commodities, stocks, precious metals, etc. It’s nice to have more options, but you’ll need to decide what you actually do or don’t plan on trading. If you aren’t worried about any of the extra things, then it won’t matter whether the broker offers them or not. 

Tip #4: Check Out Customer Service Options

You’ll want to be able to get in touch with an agent quickly if something goes wrong. This could be anything from a missing withdrawal, to an issue on the trading platform that caused you to lose money, to being locked out of your trading account with no other way to reset your password. Most bigger companies offer LiveChat directly on their website so that you can connect with an agent immediately in these cases. Other contact options include telephone, email, and other options like Skype or Whatsapp. Operating hours are important as well – it isn’t surprising if a broker is closed on the weekends, but you’ll want to choose a company that has reliable support hours on weekdays. Also, try reaching out to customer service to see how long it takes to receive a response. 

Tip #5: Look at Trading Platform Options

Many brokers offer popular trading platform options like MetaTrader 4 or 5, while others offer their very own platform. You should know that different platforms offer different features, like the ability to open a demo account, backtesting support, alerts, different order entry types, and so on. Many beginners might be happy with a simpler platform without all the bells and whistles, but you still want to ensure that the broker offers a good platform with an interface that is clear and easy to use.