Forex Broker Selection Guide

One of the most important aspects of forex trading is choosing the right broker. Many traders have already faced many problems with brokers. Some people have problems with investing as they cannot choose a good broker without realizing it. Again, it has been seen that even after making a good trade, one cannot fall into the various traps of the broker and withdraw money. There are many such examples.

 


So today we will discuss how to choose the right broker and how to make sure that your investment is safe with this broker or how much the investment should be.



Refrain from trading in the brokers in which you will get the following points.



Slipage:

Slipage is the difference between the price at which you want to open a trade and the price at which you can open a trade. In this case you will never be able to open or close the trade at the actual price on instant order. Solid and no dealing desk brokers do not have slippage.



New Broker:

This is not to say that you cannot trade in new brokers, but there are many new brokers who disappear with your capital after accumulating in the market for a few months. One broker is Kiwifxbank so be aware of investing in new brokers.

Cash or product offer

Many brokers open new live accounts and offer a variety of attractive products such as iPhone, Android, etc. with cash prizes. In fact, these are just a trap to get you invested. Beware of all these brokers.

Fiscal Paradise:

If your broker is a Fiscal Paradise type broker, think twice before investing. That when you go to withdraw money or visit their office directly, you will actually find someone there!

Unknown Authority:

Brokers have at least one authority when it comes to the market, but in that case you have to be clear about some things. For example, the authorized number that the broker is using is actually the authentication of his company. For example, a broker called Kiwifxbank did such a thing. They started working under the name of Kiwifxbank as a Sister Concern of an organization called Vault Market Pvt.



Let's learn how to choose a solid broker.

Review / Reputation:

When a broker starts working, many forex bisayaks write about the good / bad, advantages / disadvantages of that broker. Such as how this broker is, how transparent its transactions are, what are its good aspects and what are its bad aspects, etc. There different traders write their respective opinions about the broker to help you find out the details about that broker. When many traders give the opinion that the broker has slips, recalls or problems in withdrawing money, then that broker should be careful.



Duration:

Straightforwardly, the older the broker, the greater your reliance on that broker for trading. Many brokers come every year, so study the broker to see how long it lasts, you can proceed in a positive perspective for those who have been running the business for about 3 years.



Regulation:

As I said before, broker regulation is a very important fact. In the case of broker selection, check whether there is a National Authority with minimum তার domestic stock exchange regulations. For example, check for CFTC / NFA for US brokers and FSA for UK brokers.

It would not be wise to trade in Virgin Islands regulated brokers.



Headquarters Location:

Solid and real brokers trade with their physical existence because this type of financial business is not possible in Fiscal Paradise. So be sure of the broker's office location.



ECN or Dealing Desk / Market Maker:

Brokers are usually of two types, market makers who open another trade against each of your trades and create a market on their own to benefit themselves by keeping you away from the main market buyer sellers.

ECN - Electronic Communication Network Brokers are real brokers who conduct trades by directly connecting buyers and sellers. (Read my post to know more about Dealing Desk Brokers and ECN Brokers.)



You can also choose a broker and start trading knowing the broker spreads, customer support and some other details.


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Posted By lexiegordon : 01 September, 2020
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