How to choose a right Forex broker? Guide for newcomers!
Present days anyone having minimum start-up budget, internet access and strong wish to earn money can start trading on the financial markets. But any beginner asks himself/herself quite a logical question: which broker to choose?
Broker — is a mediator on the Forex market that helps in closing trading transactions. Such important factors as profitability, trading comfort and security usually depend on how good your certain broker is. Internet is full of different Forex broker ratings indicating all the details, advantages and disadvantages of numerous brokerage companies.
How to choose a right broker?
First of all you should pay close attention to a broker’s age, in other words, to find out how long one or another brokerage company has been working on the Forex market. It cannot be emphatically argued that all young brokerage companies are unreliable and bad, but if you want to avoid dealing with scammers and fly-by-night companies, it is recommended to get information about your broker’s work experience in the sphere of Forex. The higher the better. Don’t trust everything written on the official web-site of the company, but try to search for some evidences of this broker’s working experience on the independent resources.
Of course, reliability of a broker implies good reputation among traders. It is clear that any company providing its brokerage services on the Forex market already has some reputation. There is no need to spend too much time studying negative or positive feedbacks – it’s better to read several extensive reviews and comments and form your own objective opinion. Thematic forums, blogs of experienced traders and Forex broker ratings based on the real traders’ reviews will help you to do it.
Forex reviews: things to pay attention to
During your examination of the information presented on different internet-resources, it is worth paying close attention to the traders’ negative feedbacks regarding money deposition and withdrawal and regarding orders execution.
Every experienced Forex trader knows that negative reviews about a certain broker regarding the unstable operation of its payment systems or deposition/withdrawal delays — is a true reason to stay away from such company. There is a strong possibility that such company may cease to exist at any time. Oftentimes brokerage companies use offshore accounts that are potentially unsafe. In case of fraudulent activities, company closure or disputes with such broker, it will be practically impossible to recover your money.
Support Service — essential part of successful work
Availability of the competent support service – is another important feature when choosing a broker. It is quite essential when a brokerage company provides its traders with a broad-based support service: this is about profile functionality, software offered and about technical support – its efficiency and quality.
Apart from the above-mentioned, it is worth clarifying the amount of commission, leverage and minimum deposit. It is better to steer clear of so-called “bucket shops” or brokers that offer options and other operations where there is almost impossible to monitor the result and everything depends only on the provider.
Some brokers offer beginners different bonus programs and campaigns. But before using them, it is important to profoundly study their conditions. Very often, unfair brokers use various attractive campaigns and bonuses as bait to catch green and naive beginners.