10 Tips on Choosing the Right Broker

If by now, you are all geared up with the necessary knowledge required for the forex trading, its time you rev up your engines for an exciting ride by opening an online account with a Forex Broker.

Irony: Brokers Help You Make Money

Am sure, you must have been already flooded with emails & phone calls by the financial brokers telling you to open accounts with huge offers or at least try out their free demo accounts.

But at most times, many traders are still confused while choosing the right kind of broker who would be dealing with their MONEY!

At all times, remember Choosing the right broker is the foremost step for successful trading. For it’s the broker who will be responsible for money and at all time should be up to your satisfaction levels & definitely not vice-versa.

The basic 10 pointers that you should keep in mind while selecting a Trading Broker
 

1. Is My Money SAFE? Utmost Important.After all you’ve to be assured to whom you are handing over your hard-earned money! Is it going to be safe with them? Which all regulatory bodies is your broker registered with who certifies their genuinity in terms of finance? Make sure you do a thorough check & even visit the websites of regulation bodies & cross-check the registration.

2. How will I Do My Trading? Make sure before choosing a Broker you go & DO check out their FREE Trading Platforms! After all, that is going to be your window to the global markets & should be easy to use & comprehensive in terms of the tools & navigation. Find out which software /platform works best with you. Are you a MT5 person or the MT4 satisfies it all? What all EA programs are they offering? During market volatility, how well does the platform work? How soon can you close your order in this time?
   Get well acquainted with the platform you’ll be dealing with everyday.

3. Happy To Help: Stuck up? Software Error? Money withdrawal delay? You are prone to such errors & the Broker’s Customer Service should be good enough to provide immediate solutions. You definitely wouldn’t want to hold on for 30 long minutes before you get back your access; in the meantime losing many profitable positions. Make sure to test the availability & the guidance provided by customer support prior to opening the account by making calls or checking their Live Chat options on website.

4. What are my Choices? It is true FOREX is highly a liquid market, but there are other lucrative instruments too like Equities, Futures, and Options which can be made use of. Remember more the no. of financial instruments offered along with the most traded ones means you have more instruments to trade on and is an equal measure for hedging, thus giving the broker an important point.

5. Spreads: This is relatively important in case the broker is offering very low or no commission charges. In short, spreads are basically the compensation the broker receives for being the market-maker & providing the regular 2way market. Make sure, to check out spreads in terms of FIXED or FLOATING for forex & the other offered instruments.

6. Margins & Leverage: Make sure you check out what are margin requirements & the leverage levels. Leverage ratios of 200:1 are for expert traders, whereas 1:10 for beginner traders maybe fine. Also, margin requirements are important to check which facilitate your trading. Usually these are anything between 1-5%. Lesser the margin, the better.

7. How Much Should I start trading with?  Here is the main catch & you need to be extra careful when deciding on this section. Usually a Broker gives many Attractive Offers undermined by the actual terms which may not be that suitable for you. Example: A broker offering an initial deposit of $100 with high levels of spreads, huge joining bonuses & leverage would definitely pinch your pocket more often than necessary. Its better to start your trading with a deposit of minimum $1000 with minimal spreads that will give you proper insights & emotional balance when dealing higher amounts.

8. Want to be a VIP? Sadly, this is proportional to the money you pay. Always put in the money as much as you are prepared to lose. That’s the Golden Rule of trading. Thus, choose an account wisely. For most, Standard accounts with standard spreads & margins are best (Better check various brokers’ account offers before selecting one). The broker often aiming for high clients profile would try to lure you into VIP/GOLD/PLATINIUM accounts which might not suit your financial budget. Also, the leverage available for VIP accounts are generally less than that offered for standard accounts. Be firm with your decision, & go with the Account which suits you & not with the one your broker sells. Usually reputable brokers offer good offers on standard accounts as well.
   
   
   
9. How Soon Can I get my Money Back? Deposit & Withdrawals- these facilities should be hassle-free & smooth flowing. Who would want their own money to be delayed because the broker doesn’t have structured facilities for withdrawals? If the deposits are relatively easier & faster than the withdrawals you can gauge the reputation of the broker.

10. What Else? While above point s are very necessary, additional services like analysis reports, market news, webinars / seminars, educational packages or e-books to increase you trading knowledge are provided by most reputed brokers.

Finally, after choosing the best broker based on these basic pointers, your technical knowledge & skills put together, will sail you through a lot of ups & downs, yielding into a many profitable pips.
Remember, forex is YOUR Venture & only the best associates will work!