How to successfully choose a broker
What You Will Learn:
- Why you need to choose a regulated Forex broker
- Trading with a market maker or a straight through broker
- Understanding rollover interest and its impact on trading
- Deciding on broker platform
- Unraveling the hidden restrictions in brokerage services
- Customer support and responses to client problems
- Demo trading as a compulsory option
- Usefulness of broker comparison
- First off, you need to check if your broker is regulated by a competent authority. Some of the most popular regulating authorities are the National Futures Association (NFA) or the Commodity Futures Trading Commission (CFTC), the Financial Conduct Authority (FCA), the Cyprus Security and Exchange Commissions (CySEC) and various national authorities.
- Compare the advantages and disadvantages of each platform and narrow your search for choosing a broker based on the platform.
- The potential features of the type of Forex broker you wish to work with is another vital step in this selection process.
- Does your broker offer credit and debit rollover interest? If yes, you should know how much you pay or receive from the rollover interests.
- It is imperative to know the spreads you have on the pairs you are trading. As explained above, some of the brokers are only paid through the spreads they offer to their clients. So you will prefer to work with a broker that offers the lowest possible spread in the market and at the same time you have no additional charges for your trading.
- Do more research from the broker’s website to find out if there are any additional restrictions.
- One of the most remarkable features of reliable brokers is to provide immediate support when is needed.
- It is highly advantageous to have an unrestricted demo trading because the more you practice the more perfection you attain.
- Comparison between brokers gives you a vivid understanding of the Forex market.