Choosing a broker is the first step that every trader does when starting his FX career. Who is a broker? What qualities should he possess? Why is it so important to rely on the chosen company? There are answers in the article below.
Who is a FX broker?
A broker is a mediator organization or a company that provides a trader with an access to online trading with the help of the trading terminal. This company represents traders’ interests on the foreign exchange market and fulfills all orders for purchase-sale purposes.
What should a broker have?
There are several criteria to answer the most popular question how to choose a Forex broker.
|1.||Reliability||If a user cannot get his money in time, the platform or quotations lose its significance.|
|2.||License||Trustworthy companies take care of legality, because it makes their reputation, and the reputation means everything.|
|3.||Terms of trade||i.e. the size of the spread, the commissions, the presence of slippage, a variety of trading tools, minimum and maximum volume of trade provided by trading platforms, VPS servers.|
|4.||Terms of the treaty||When choosing a Forex broker, every client should know how to settle a lawsuit, if one occurs. So, rights and responsibilities of each party should be revealed.|
|5.||Insurance||Sometimes funds are transferred straight into the bank account, which is a great advantage, as in case any problems occur, clients’ investments and income will remain safe.|
|6.||How long a mediator is in the market||The longer the company works in the market, the better. Optimal time of existence of the company is considered to be 5 years or more.|
|7.||Minimum deposit||Every trader should know how much money should he possess to open a real account.|
|8.||Trading terminal||It is the essential software for trading: the better it is programmed, the easier work will be.|
|9.||The convenience of depositing and withdrawing funds||A trader should be confident of getting his money in time.|
Why is a broker so importance?
The process of trading is pretty stressful and needs experience and support of partners. Every trader is choosing an online broker with the purpose to be able to keep in touch with it whenever he wishes, because:
- it does depend on a chosen company how successful the work will be;
- it helps to educate, practice and become skillful;
- it informs about news in the market and up-to-date quotations;
- it helps to withdraw a trader’s income.
You can always change a mediator, if you are not satisfied with his work. There are online services providing ratings of best brokers to inform you about most trustworthy companies. For example, if you become interested in binary options, there are top 10 binary options brokers. The information is complete and up-to-date.