choosing your Forex broker
how to choose a Forex broker checklist
All the brokers are upholding to the highest standards all the questions and topics i will address below. This is the list we thing you should consider when choosing your Forex broker to trade with.
Regulated Vs. Unregulated
Here there are only 2 options, the broker is either regulated or is non-regulated. Since crypto trading is a little bit different fromstandard forex and somewhat new regulation is still not as far developed as it is in the other types of trading offered by online brokers. Regulated Broker does not always mean that the broker is honest and provides the best service , same for non-regulated brokers, some of these are the best brokers in the industry. This is where you have to do your homework and read reviews to choose. Regulation is very expensive and simple unattainable for some brokers due to location, funds, or simple business strategy.
Company’s Financial Health
You want the broker you are trading with to remain in business and not goc belly up while you still have funds in your account. This is where regulation does help , since it requires funds to get this regulation , but we have in the last couple of years seen that this is no assurance that they cannot go bankrupt.
Most brokers are underwriting or hedging their risk with third parties which means that even if they lose out on an huge trade they can afford to return your profits. In some instances the brokers hedge Large trades with other brokers to minimize their own risk. Still it is important to know and follow up on the health of the broker
You want to trade on the latest versions of the platform , with the fastest execution and no down time at all if possible. For this servers and technical know how is required from the brokers side. You want them to understand an issue if it is technical and not have to wait for a long time to get your answer, problem is that this will most of the time only be clear the moment they need to prove themselves and ten I might be too late. A broker that has a reputed provider has some backing concerning the software on the other hand a broker that has a proprietary platform knows his software better than anyone. Read about this before you make a decision and see which brokers have the most technical difficulties and downtime and then avoid them.
Mobile trading becomes more and more important s the mobile has become a major part of todays life. Those dbrokers that offer thee solutions are the ones you want to look for , as it will allow you to keep watch on your open trades if they are for longer dperiods and also not miss a good market opportunity
I cannot state how important this is. Customer service is one of the most important aspects to consider when selecting a broker. If the broker is unable to assist you in your language or during hours when you are trading then it is time to find another broker. they need to be there when you need them as it is your money on the line. do not compromise on this.
Choosing a broker who provides you with a wide variety of in-depth tools to help you analyze the economic climate and financial markets of that day and moment is a very important. Not many traders that trade on emotion alone last long . any trade you open should be based on some data and information . a broker that provides accurate news feeds and financial calendars will help you make better decisions
Secure Deposits and Withdrawals
Security, privacy and ease of are crucial. Depositing is never really a problem , getting your money and hopefully winnings out might be harder, find the broker that has a clear policy for this and stand by the promises they made, it will always takes a few days till a week to get your withdrawal, but it should not take longer.
Types Of Trades
As you trade more you are also evolving in the type of trading , therefor take a broker that offers different trading types or formats. It will give you room to experiment and find the best trading type for you., also the payout are largely depending on the trading type so when you are into taking risk and want the very high payout a broker that offers these solutions is a must
Expiry Time Availability
Expiry times are the time periods during which your trades will remain open. Upon closing the trade, the price of the asset you selected must be positioned as predicted in order for you to earn money.
You need good assets to trade with. In general most brokers have pretty much the same assets with a few like 10Trade who stand above this. It is important to have the choice. Most people tend to trade with the local currency and local index. So make sure that the assets you like to trade and where you have the right amount of access to the information you need to trade properly is also available for trading by your broker. A broker should offer at least 100 different assets divided of the assets groups, currencies, stock, indices and commodities, to be taken seriously
Ease of Use
You want to make sure you trade on a platform you understand. In forex the most used platform ( MetaTrader 4 ) has a larger learning curve and requires some education money ( projected losses due to being unfamiliar with the system). In Binary options the systems in general are much easier . nonetheless you want to be able to focus on the actual trading and have a clear and intuitive system
Pay-Out ( for Binary options Only)
Payouts are what decides if you are making money or not. You done want to get below the 65% payout in general it will be most likely somewhere in the 70% and we have seeing mid 80% payouts. The payout are changing all the time so make sure that you are able to see the payout for the trade you are about the open in front of you. You should not trust that the payout this time will be the same as the last trade. Look for high returns and brokers that deliver what they advertise
Secured Trading Environment
You want to make sure that your details , either account details or private details are found on the street, you need to trade secure and have confidence and trust that your broker takes your private details serious. The moment you have opened an account and many other sales people start calling you straight away, it would be a good time to take a closer look at your broker. This is where forums are your friends