Tag: Forex Broker Accounts

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Forex Basics Forex Brokers

Tell-Tale Signs You Need to Get a New Forex Broker

Are you here because your forex broker hasn’t been meeting your expectations lately? If so, then you don’t have to settle. New brokers open their doors every single day and hundreds of options have probably popped up since you first signed up for that old trading account. Finding a new broker can offer multiple benefits, from reduced fees to a wider selection of trading instruments, the chance to make extra money through bonuses, and more. If you’re seriously considering switching, then take a look at our list of tell-tale signs that you need to find a new forex broker.

Are you here because your forex broker hasn’t been meeting your expectations lately? If so, then you don’t have to settle. New brokers open their doors every single day and hundreds of options have probably popped up since you first signed up for that old trading account. Finding a new broker can offer multiple benefits, from reduced fees to a wider selection of trading instruments, the chance to make extra money through bonuses, and more. If you’re seriously considering switching, then take a look at our list of tell-tale signs that you need to find a new forex broker.

Are you here because your forex broker hasn’t been meeting your expectations lately? If so, then you don’t have to settle. New brokers open their doors every single day and hundreds of options have probably popped up since you first signed up for that old trading account. Finding a new broker can offer multiple benefits, from reduced fees to a wider selection of trading instruments, the chance to make extra money through bonuses, and more. If you’re seriously considering switching, then take a look at our list of tell-tale signs that you need to find a new forex broker.

Sign #1: You’re Paying Too Much in Fees

You’re likely paying commissions, spreads, and possibly withdrawal fees for trading through your broker. In some cases, you might not be paying commissions but you’re dealing with a higher spread to make up for it. If you’ve been trading with the same company for some time, you may not have been paying much attention to these fees, but have you compared them to any other brokers lately? If your broker is charging you a spread that is above 1.5 pips on EURUSD, we can almost guarantee that their other prices are too high, which means that you could be walking away with more of your own money in your pocket at the end of the day if you simply switch to a broker with cheaper fees. There’s also a good chance you could find a broker with no withdrawal fees for debit cards versus the 7% fees we’ve seen listed through several brokerages. 

Another thing to watch out for are extra charges, like inactivity fees or account maintenance charges. Some brokers do charge small inactivity fees to clear out balances that are left behind forever, but others charge high fees after about a month of zero trading activity. Account maintenance charges are basically like made-up charges that your cell phone provider would come up with to make a few extra dollars. Now is a good time to check your broker’s terms & conditions to see if any of these fees apply. If so, you might want to switch, especially if you’ve been hit with inactivity fees before. 

Sign #2:LacklusterCustomer Service

When it comes to customer service, a good broker offers flexible hours, quick and convenient contact methods, and polite service representatives. Sadly, you won’t find this available with every broker and you’d have an easier time pulling teeth than getting in touch with an agent through some shadier brokerages. Imagine having an issue where you never received a withdrawal you desperately needed, but you couldn’t get in touch with anyone to find out what happened. Or perhaps you simply get locked out of your account and can’t reset your password, so you’re stuck missing out on trading opportunities for days while you wait for an agent to respond to you. If you haven’t been there before, there’s always a chance that this will affect you in the future. Rudeness is another thing that you shouldn’t have to tolerate and is a sure sign that you’ll do better with another company. 

Sign #3: Limited Trading Opportunities

If you’re a trader that is only interested in currency pairs, then this one might not matter to you as much, as long as your broker offers a good selection of majors, minors, and exotics. However, many traders do look to diversify their trading portfolio over time, even if they started out focusing only on currency pairs. If this is the case for you, then you’ve probably outgrown your forex broker if they don’t offer much in the way of commodities, stocks, or cryptocurrencies. If you’re in this situation, you might want to switch to gain access to a wider diversity of investment options – or you could open a secondary account through another broker and continue to trade currencies on your current account if your broker offers competitive prices. 

Sign #4: An Unsatisfactory Trading Platform

Some brokers offer access to award-winning platforms like MetaTrader 4 and/or 5, or they have their own trading platform for users to trade on. If you’re dealing with a broker that lets you trade on MT4 or MT5, then you already have access to one of the best platforms out there, but don’t hesitate to switch if you don’t personally like those options. If your broker offers their own platform, you’ll need to think about how satisfied you are with the features and tools within it. Does it seem basic? If your trading platform is missing out on all the tech you’re looking for, consider switching. Also, know that more popular brokers are more likely to offer outstanding platforms, while smaller shadier brokers are likely offering up more basic trading platforms. 

Sign #5: Your Broker Is Too Basic

Some brokers have a lot to offer in the way of extra perks, like bonuses and promotional opportunities, a wide selection of assets to choose from, a wide array of educational resources, trading tools like calculators, amazing trading platforms, and etc. Others only offer a basic trading platform with zero resources or extra perks on their site. Obviously, the latter is rather boring when there are so many companies offering so much more out there. If your broker only offers the bare minimum, we highly recommend looking at other options so that you can benefit more from the trading experience.

Categories
Forex Basics

Forex Trader’s Guide to Broker Deposits & Withdrawals

We’ve compiled this handy guide to give traders more insight into the most common funding methods available with brokers today: bank wire transfer, cards, cryptocurrency, and e-wallets. Choosing a good deposit/withdrawal method through your broker is essential for several reasons. Fees, processing times, security, and other factors all need to be considered, otherwise one might […]

We’ve compiled this handy guide to give traders more insight into the most common funding methods available with brokers today: bank wire transfer, cards, cryptocurrency, and e-wallets. Choosing a good deposit/withdrawal method through your broker is essential for several reasons. Fees, processing times, security, and other factors all need to be considered, otherwise one might […]

We’ve compiled this handy guide to give traders more insight into the most common funding methods available with brokers today: bank wire transfer, cards, cryptocurrency, and e-wallets. Choosing a good deposit/withdrawal method through your broker is essential for several reasons. Fees, processing times, security, and other factors all need to be considered, otherwise one might find themselves paying ridiculous fees or running into issues down the road.

Keep in mind that anti-money laundering laws and broker policies usually require funds to be withdrawn back to the original deposit method, so you’ll want to consider the factors that affect deposits AND withdrawals with any certain method. 

Bank Wire Transfer

Wire transfer to/from the client’s bank account is the most traditional method for depositing and withdrawing funds that is offered among brokers. Depositing this way can be somewhat outdated, considering that there are longer wait times for the funds to be credited and withdrawals are also subject to bank processing times. This can be frustrating if you’re in a hurry to have your account funded, or if you need your withdrawal quickly for any reason. Fees are usually unavoidable as well and usually fall within the ballpark of $30 to $50 USD. Intermediary bank charges and/or conversion fees can also apply. Those making a large transaction may do better with this method if the chosen brokerage has funding restrictions with other methods. Bank wire usually allows for larger sums of money to be deposited/withdrawn. 

Credit/Debit Card

Making a deposit via card is one of the quickest and most convenient ways to deposit funds into your trading account. These funds are often credited instantly, making this a great way to replenish your trading account in a hurry. Withdrawals do tend to take a bit longer than with cryptocurrency or e-wallets, as you’ll need to factor in the broker’s processing times along with the banks. Fees vary with this method – many brokers offer fee-free deposits, but there may be percentage-based fees (around 3-7%) charged on withdrawals. Others offer fee-free depositing both ways.  

Cryptocurrency

Cryptocurrency has become a popular modern method for transferring funds quickly to and from trading accounts. Here are some of the most popular cryptocurrencies out there:

  • Bitcoin (BTC)
  • Litecoin (LTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Bitcoin Cash (BCH)
  • Tether (USDT)

Keep in mind that some brokers offer all these options (possibly more), while others may only offer a few of them or only the most-popular Bitcoin. Others out there have not jumped onto the cryptocurrency bandwagon and do not allow cryptocurrency-based funding. Funding your account through one of these methods comes with several advantages, although you’ll want to consider the fact that the value of this money is ever-changing. Still, Bitcoin or any other cryptocurrency can always be converted to cash and withdrawn to one’s bank account if that is preferred.

Cryptocurrency’s changing value falls in the middle of being a pro and a con – you may lose money, or gain some, depending on when you make transactions. 

E-Wallets 

E-wallets have joined cryptocurrency as one of the newer, quicker methods for funding brokerage accounts, among other things. They work like pre-paid wallets (like bank accounts), however, funding through an e-wallet is much quicker than more traditional methods. There are tons of e-wallets out there to choose from, but brokerages tend to limit the options that can be used to fund on their sites. Here are some of the most commonly available e-wallets offered by brokerages:

  • Skrill
  • Neteller
  • QIWI
  • Przelewy24
  • PayPal

Broker-to-Broker Transfer

In order to fund your account this way, you would need an existing trading account with another brokerage that is already funded. Many traders with secondary accounts choose to fund this way; however, both of your brokers would need to support the funding method. Fees may apply with this method, but this varies. 

Miscellaneous Methods

While we’ve covered the major funding methods most used by brokerages, do keep in mind that there are hundreds of payment options out there, so you may find an option that isn’t listed here. Know that some methods are also restricted to clients in certain locations as well. For example, GiroPay is for German residents. If you do see something you’ve never heard of, be sure to use Google to conduct further research.

Conclusion

Here are a few key tips for depositing/withdrawing with any broker: 

  • Be sure that the broker offers at least one or two payment methods that appeal to you.
  • Check for any ridiculous fees with any broker and avoid using those funding methods. 
  • Look for a withdrawal minimum requirement. If the broker requires withdrawals to be made for minimum amounts of $50, $100, etc., then some of your money may get stuck in limbo if you decide to pull everything out of the trading account due to bad luck or because you’d like to switch to another broker. Reputable brokers do not usually set a limit, or the limit is low (around $5). 
  • Also, check to see if there is a withdrawal minimum for any particular funding method. For example, bank wire is sometimes subject to a $100 requirement per withdrawal. 
  • Does the broker’s website have a detailed page related to funding? Transparency is key here. A lack of information or detail about fees can typically result in higher than expected charges or hidden ones. 
  • Remember to factor in all pros and cons for any given method and decide which works best for you. Some traders may not mind paying higher fees if it means they will receive funds faster, while others would prefer a longer wait in return for fee-free withdrawals. This comes down to personal preference.
Categories
Beginners Forex Education Forex Basics

Forex VIP Trading Accounts Explained

A VIP account is a type of trading account that is offered by many forex brokers. If you’ve heard of them, you might already know that these accounts are reserved for high-roller clients that can afford to make a significant investment with a broker. If you didn’t know, just check the ‘Account Types’ page with […]

A VIP account is a type of trading account that is offered by many forex brokers. If you’ve heard of them, you might already know that these accounts are reserved for high-roller clients that can afford to make a significant investment with a broker. If you didn’t know, just check the ‘Account Types’ page with […]

A VIP account is a type of trading account that is offered by many forex brokers. If you’ve heard of them, you might already know that these accounts are reserved for high-roller clients that can afford to make a significant investment with a broker. If you didn’t know, just check the ‘Account Types’ page with any broker and you’ll find that VIP accounts require a huge initial deposit.   

How much is a “significant” investment? Well, the answer differs depending on the broker, but one thing is for sure – a VIP account is usually the best account offered by a broker and thus requires the largest deposit they ask for. If the broker’s Premium account asks for a $25,000 deposit, you can bet that the VIP account requires double that or more to be opened. We’ve seen brokers ask for $25,000, $50,000, $100,000, and anything above, below, or in-between.

If you’re disappointed to see how much it costs to open a VIP account, don’t worry. Many brokers offer at least one or more accounts that ask for a smaller, more reasonable deposit. You should be able to find beginner-friendly accounts for $5 to $250 if you’re just starting out. 

Still, you might aspire to become a successful high-roller trader one day that can afford to open a VIP account. If you’ve had your eye on one of these exclusive accounts, there are actually several benefits you should know about that are related to opening a VIP account:

  • Brokers might place maximum balance caps on their other accounts, but VIP accounts can hold an unlimited balance. 
  • Most brokers offer special discounts to VIP account holders – oftentimes, spreads start from 0-1 pip(s) and commissions are low. The best trading conditions are often reserved for these clients alone. 
  • Additional perks are often provided to VIP clients. A dedicated account manager and one-on-one webinars with an expert are some of the perks we’ve seen, but these special offers vary widely depending on the broker.
  • Brokers tend to be more concerned about their VIP clients – it’s all in the name, after all. If you’re having an issue and need to speak to support, you can expect to hear back quickly. Your broker will want to do everything they can to keep you as a client. 
  • Some brokers provide VIP clients with expedited withdrawals and/or zero withdrawal fees. 

As you can see, VIP clients are provided with certain advantages, like lowered fees, more responsive customer support, special perks in the form of an account manager or other extra options, and the ability to hold an unlimited account balance. You also might see benefits that are exclusively offered to VIP clients, like lightning-fast withdrawals or fee-free withdrawals, even though other account holders have to wait and pay for their withdrawals. 

Don’t be discouraged if you don’t see yourself as a VIP client anytime soon. Know that most brokers offer multiple account types that can be used as steppingstones up to their very best account. Beginners can start out at the entry-level account and graduate to a better account as their balance grows, earning more benefits, and paying lower fees with each upgrade. Eventually, you could find yourself at the top with a lot of hard work and dedication. We aren’t saying that everyone can have a VIP account – but you can find yourself there one day if you invest your money and spend time educating yourself and perfecting your strategy. Also, be sure to compare brokers to make sure that you get the best trading account that your money can buy right now.