Hello everyone, dear readers! On this positive spirit, we will discuss today’s issue. How to choose a reliable forex broker? What factors do not influence anything, but are presented only for advertising purposes? Go!
I will not make logical conclusions in this post, the general pluses and minuses of any broker you can find in hundreds of articles, they are written a huge amount. I will share my personal experience with you. I have been trading since 2008, I tried to work with many companies. Even now, I keep accounts in several companies, since I use a certain technique for diversifying funds.
To be honest, for a profitable trade on forex, the broker’s choice is very important. There are 2 determining factors, which need to pay all attention. And 3 secondary, which will be a good addition.
How to choose a forex broker? 5 important factors.
1. Quality of work, reputation.These characteristics are closely related to each other. What do I mean by quality of work? This is the execution of orders, slippage, interruption of communication and the time of withdrawal/input of funds. It affects on your profits directly. Slippage can worsen your results by tens of percent (as I myself saw). Execution of orders is of great importance for active trading, imagine that each transaction will be executed by 1 point worse. For 1000 transactions you lose 1000 pp, and for a year they commit more! Withdrawal of funds and interruptions with communications – everything is clear here, without comments. All such fraudulent brokers inevitably attract the attention of the Internet community. Therefore, it is worth to assess the reputation, if it is not very, then such a broker will prevent you from earning. But to the conscientious companies, there are no complaints.
2. Trading conditions. Since you want to choose a forex broker for trading, this is the second major factor that you need to pay attention to. At various costs, money is lost. This spread, swap, sometimes commission. At first glance, it seems that it is not very important that the trading conditions are the same everywhere. As if, not so! At different companies, they differ in 2 times! In fact, forex brokers earn huge money, and they earn just on the spread, commissions. They are paid by traders. Think about it. For example, I have an average of 100 trades lost about 30% on spreads and swaps on average. This is under very good conditions. Previously, I lost twice as much, because I was wrong with the broker. . . By the way, I published an article on this topic, with concrete examples: “How does a forex commission kill your account ?!” Remember, the lower the costs, the more you will eventually earn!
3. Support. I do not take the following factors to be particularly important since they all have about the same. In support, they are mainly addressed at the initial stage, when there are unclear questions. I for all 5 years addressed once 10-15. And the questions were not particularly important, I did not want to search on the Internet.
Although, there was one case, not very pleasant. For one instrument pending orders were no longer displayed, that is, I could not trade according to the rules of my system. I turned to the support, suffered from me weeks 2, as a result, I could not help, I had to close the account. Like this.
4. Software. It’s great if there is a good choice. For example, applications for phones, for me it is very convenient. The main work is done from the computer, but I can control some transactions from the phone. I do not have the desire to sit around the monitor all day and watch every tick, therefore, mobile trading removes this problem.
5. Security. How to choose a reliable forex broker? Assess safety! Better I’ll send a scan of my passport than lose my money. Many brokers are ready open accounts to anyone, this is alarming. And when there is a certain protection, I feel calmer. For example, some forex brokers have a withdrawal only on the bank account or with a password through the phone. And some can crack the account and withdraw all the money to the left accounts. There is a difference.
In my opinion, these are the 5 most important conditions for the right choice. As a supplement, I can advise you to use overrated forex brokers. The most important condition for its formation is a low commission for customers, the lower they are, the higher the company is on the list.
By the way, for a successful trade, I can advise automatic advisor. The yield on average is about 7% per month, very high reliability, which is confirmed by the tests for 5 years. The main thing is, it’s absolutely free!
Factors whose importance is exaggerated.
1. Training. This is not an indicator for a good forex broker, still, the main thing that is required is acceptable terms of trade. A training in trading is a completely different business. Someone thinks that in one company you can learn to trade and work, and you do not have to strain at all. NO! Everything depends only on the trader himself, if he wants to learn, he will do it, if not, then no training will help!
2. Analytics. I do not think it’s important for a broker either. Can you imagine that a professional trader is waiting for an overview on the broker’s website? Me not. In my city, the position of an analyst was taken by a girl after the institute, completely without any trading experience. Do I have to believe such predictions?
3. Leverage. Perhaps some strategies require a huge Leverage, for example, 1: 500, but this is a rare case. In addition, any advertising says that you can make transactions with a volume of 500 times more, but it is always silent that the risk also increases 500 times. Usually, such good trade does not end with anything good.
That’s it, dear friends! I invite you to research next broker, who clearly fits all above rules, and where I keep account almost 5 years. (https://paxforex.com)
Wish you best results in your trading.