Choosing a reliable Forex broker

Forex broker is a mediator that transmits trader’s transactions to the interbank financial market and also helps make this trade comfortable. To choose a quality Forex broker, a set of rules should be given.

Choosing a reliable Forex broker

Selection rules brokers

Choice of a reliable broker should be considered on the basis of the following main components of services and opportunities of the brokerage companies not to be mistaken because of starting bonuses, enticing ads, etc. Thus, there are following rules:

Comparing your own capabilities to the requirements of a broker

To open an account, brokers are likely to require a minimum amount of funds. If the investment amount is large, problems are unlikely to occur. However, novice traders’ initial deposit is small and it may not be enough to get started.

Understanding the methods of making a deposit and withdrawal of money

One needs to find out the ways to make a deposit, discover a possibility of getting electronic money, assess speed and amount of the withdrawal request, and get the documents needed for verification and a contract.

Checking a license of a broker

Most of the foreign companies have necessary licenses. As a matter of fact, the Russian companies usually are only licensed gaming houses. Thus, it is possible to fall into the hands of a Forex scam called “kitchen brokers.” Unlike real, “kitchen brokers” do not put a trader’s transaction in the interbank market and leave it within their own system. In this way, they are not interested in the percentage of a trader’s transaction. There is a great interest in all money a trader will lose. Therefore, “kitchen brokers” try to merge the accounts of traders by different fraud ways. A trader always loses money cooperating with such companies.

Learning a trading platform to work with

Most Russian companies provide their services using the platform MetaTrader-4 as it is already well-known, easy to learn, and simple to use. There are brokers that provide their own terminals. Sometimes they differ from the standard MT-4, therefore, a trader needs to learn them.

Reading the terms of trade

Terms of trade include spreads, commission charges, and any additional terms to get familiar with. It is important to consider the magnitude of the spreads and if they are fixed or floating. In addition, a question regarding swap may arise as well. Currently, most brokers have no fees for transferring transitions to the next day. Most importantly, Western brokers often require a minimum amounts of transactions per month. For not meeting these requirements, a trader will be charged a certain amount of money. To prevent such unpleasant consequences between a broker and a trader, one needs to be careful when reading an agreement.

Reading reviews of the other traders

The more time a broker provides its services to traders, the more reliable it is considered. Reading articles on brokers, you should pay attention to the comments of other traders. For a long period of time, experienced traders express their thoughts and opinions about the quality of service they use. It is possible that 1-2 negative comments are not worth considering, but you should take note if they are quite reasonable. In particular, comments are important if they are related to the trading conditions, spreads, swaps, commissions, slippage, or communication quality.

In addition to the above statements, there are lists of Forex brokers with the comparative characteristics of different indicators’ types. Most of them are designed to highlight one secretly advertised broker. By comparing several lists of brokers, it is possible to get useful information about your chosen broker.

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