The first step to success with Forex is the right choice of a broker.
For beginners especially, it is difficult to choose a brokerage company that you will encounter no problems working with. Basically, people at this stage usually choose the broker that has caught their attention via an ad or taught them some of the trading principles, rather than going with the option that has better trading conditions and more opportunities to make profits. In the age of the Internet, you can see tons of advertising banners for Forex brokers.
Sometimes it’s difficult to single out a broker among all the others, considering most people want to work with one broker with whom they will form long term cooperation rather than jumping from one broker to another.
In the past few years, this new type of additional income, made trading on the foreign exchange market, has become increasingly popular across the globe. First of all, this type of earning brings in a decent profit to those who already have certain skills and know how to behave during the trading process. A brokerage company (broker) is a firm offering its services for trading financial assets, including currencies, stocks, and commodities. It is extremely important to be well informed about the chosen broker you plan on working with, and there are quite a few aspects that need special attention.
What influences the profitability of trading in the foreign exchange market? Obviously, these are the skills and knowledge of the trader himself, as well as the right choice of a Forex broker. Since a broker is the financial partner of a trader and an intermediary between him and the market, this choice should be taken very seriously.
Of course, each trader has his own ideas about what an ideal Forex broker should be. Someone is interested in the availability of training programs, someone pays attention to the number of trading instruments, someone to the spread size or the ability to trade with pip strategies, etc. Nevertheless, it is possible to highlight the general selection criteria, which are worthy of being paid attention to by absolutely any trader.
The speed of the execution of orders is one of the main factors for success in Forex trading since even a slight delay can lead to the fact that the transaction will be opened at a price that is no longer profitable for the trader. When choosing a Forex broker, you should pay close attention to it and give preference to those companies that provide the highest possible transaction processing speed on the fastest platforms.
Order processing technology is also of great importance. For example, today the most innovative and progressive broker companies prefer end-to-end processing of STP, which withdraws transactions immediately to the interbank market, and therefore, provides the most transparent conditions for earnings.
The concept of trading conditions includes the number of trading instruments and types of accounts, the size of the spread, and the number of decimal places in the quotes. Here, a lot depends on the personal preferences of the trader, but professionals advise choosing a company that provides the broadest conditions for earning money. For example, if a broker offers 5-digit quotes, then this is a big plus since you can earn even on the slightest of price fluctuations.
Most modern brokers prefer the classic MetaTrader platform, now available as versions 4 and 5, as it has proven itself countless times over and over, hence its popularity among traders. When choosing a Forex broker with MT platform, you can be sure that it will be easy and convenient for you to work with.
This is something anyone should be paying special attention to, especially those who often do not have a large starting capital. If earlier it was believed that good brokerage companies set a high entry threshold, now this is not at all true. Even some high-end professional trading companies offer a minimum deposit of $100-$200.
Many options do not translate to quality. This fully applies to the ways of depositing funds and withdrawing them. Here, the main thing is not quantity, but reliability and convenience. For example, if a broker offers 3-4 ways that are reliable and proven, then this is enough. At the same time, an honest broker will never charge additional fees for depositing or withdrawing funds. The client will pay only the fees provided for by the payment system chosen by him.
Whatever the attractive trading conditions and opportunities for potential earnings, all of this will not matter if the broker is dishonest and ultimately interested in you burning through your funds. How to determine that a Forex broker is worthy of your trust? First, such a company must be licensed by a regulatory organization that protects the interests of the trader. Second, trading conditions should be as transparent as possible, and the company's earnings mechanism should be simple and straightforward. An honest company will not hide from its customers how it earns its profits (most often it is earnings on swaps and spreads).
Many traders try to choose a Forex brokerage company that offers the largest amount of bonuses when depositing funds, transferring from another dealing center, etc. However, contrary to popular belief, the presence or absence of bonuses does not at all indicate the broker’s generosity or professionalism. After all, bonuses are first and foremost a marketing move that allows you to attract customers. In fact, only the conditions for real trading deserve attention. If they are convenient and profitable, then the trader will be able to earn decent profit without bonuses. Otherwise, even bonuses in the amount of 100, 200 or 300 percent will not be of any use.
Since trading on Forex takes place via the Internet, it is imperative that any transactions and personal data entering your personal account and trading platform are reliably protected.
Choose a Forex broker that uses modern means of protection against Internet fraud and provides its customers with data confidentiality and financial transactions security.
Last but not least, before opening a real account in the company, and making money there, you must try to contact support, ask a couple of questions, wait for them to give an answer and see how quickly this happens.
There are brokers offering quality support to their clients, where they help in resolving issues and do everything to make the Forex market more accessible and understandable for beginners.
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