As if there was not already enough to understand about forex trading, the broker you choose is actually the most important trade you will ever make.
You are giving all your funds to that company with the hope that you will be able to do business with it and withdraw when it is the perfect time to take your profits.
You might have great forex trading strategies, but if the broker runs off with your hard-earned money, all your research and hard work were for nothing.
Try these four in-depth methods to find a good broker, so that you end up with the best broker that accommodates your requirements, without exposing you to any frauds.
Think About Your Needs
Do you want to day trade a little or a lot?
Are you going to capture bigger moves or trade with small moves?
If you are going to capture small moves and day trade a lot, give some thought to an ECN broker. You will pay a commission rate on trades with tightest spreads which matters a lot while trading small moves. Find only “ECN Forex Brokers.” If ECN broker is not your thing, then you still have a big pool of potential and regulated brokers left.
How much capital do you want to invest? With a small amount of funds, it’s important to trade micro lots.
If you have £1,000, you can start day trading with mini lots. Do not open a standard lot account if you don’t have at least £10,000. Consider minimum investment requirements to start day trading.
Test Your Broker
The list of reliable brokers must be smaller. However, with so many falsehoods out there, do not make up your mind yet. As an alternative, try out the broker companies you’re most interested in.
Trade your live account with the partial first deposit for at least a couple of weeks. During this particular time, carry on and test customer service, communicating with them and assessing the way quickly they answer. If every little thing seems good at this point, you have done your required groundwork.
Steer Clear Of “Bonuses”
Whenever you open your live account, steer clear of all “bonuses” the forex broker offers. Here is a good example: “Open your £1,500 account and get £100 as bonus money!”
Not a single thing comes as a gift. When you accept your bonus, it may obstruct withdrawals, because a specific part of the amount in your account is for the brokers.
Make Sure to Check Reviews
An important part of your research in selecting a broker should be reading written reviews of the particular broker as well as community forums.
Be skeptical of all these, though, except in cases where the information and facts come from credible sources, and the majority of forums aren’t reliable sources, you may find some fake reviews or feedbacks, both negative and positive.
Check out what people are talking about the broker because lots of falsehoods get published with no credible source.