Wherever people talk about making money on the internet, the term forex trading has been mentioned more and more often lately. Many bloggers and self-proclaimed experts praise forex trading as a way to earn a lot of money quickly and safely. However, the high risk that always exists in forex trading is simply concealed in most cases. If you are not familiar with the subject yourself and blindly trust these “experts”, you can quickly lose a lot of money. I have only been dealing with the topic of forex trading for a short time, but all the more intensively.
To help you choose the right broker, we have laid down specific guidelines for choosing a Forex broker. However, despite laying down the principles, it is still your decision that matters in choosing your trading partner for the rich or the poor.
How to choose a forex broker
Before choosing a forex broker, you must first ask yourself, “Is this a legal broker/is this broker safe?”. First and foremost, it is important that you know whether your potential forex broker is a licensed brokerage firm or a scammer. Since you will be entrusting your money to your broker, you need to know if you are putting your funds in a safe hand. To do this, look for the broker’s regulatory paperwork. For one, brokers in the US are certified by the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC). Other countries such as Germany, France, Austria, Switzerland, Canada and the UK also regulate forex brokers.
Traders must be vigilant and careful when choosing a forex broker to avoid scammers and fraudsters – look blacklisted forex brokers. Always opt for a trusted forex broker that is a regulated forex broker. Choose a Forex broker you can trust/ Example https://forex-up.com/broker-reviews/exness-review/exness-raw-spread-account-review/
ACCOUNT TERMS AND OTHER DETAILS
After finding out about the regulatory status of the broker, it is now time to check the trading terms and conditions offered by the forex broker. In particular, traders need to consider the leverage and margin offered. Brokers usually offer leverage from 50:1 to 200:1. Low leverage may be too limiting for a trader to profit from the trade, while 200:1 leverage may be too risky. Large leverage works for winning trades, while it becomes a liability when the trader is on the losing side of the trade. Traders just need to remember to use leverage with extra caution.
Another trading condition to be considered by a forex broker is the commission and spread price. Brokers earn on commission and spread. The spread is the difference between the bid price and the ask price of the forex currency pair. In this context, many brokers claim that they do not charge commission. While this may be true, brokers make money by widening the spread. The wider the spread, the harder it is for the trader to make a profit on a trade.
The initial deposit amount is also a consideration, especially for beginning traders with little trading capital. Some brokers offer a mini account that requires as little as $500 as an initial deposit.
As for deposit and withdrawal policies, look for a broker that has a soft policy on withdrawals to trading accounts. There are some brokers that have dubious funding policies by sparing discretion to allow withdrawals from clients.
Therefore, choose a forex broker that does not withhold your money and allow withdrawals at any cost.
The trading platform is the traders’ gateway to the forex markets. Accessibility and convenience are paramount in the forex broker’s trading platform. MetaTrader 4 (MT4) is the standard trading platform offered among brokers. If your eyed broker has both the web and mobile versions of the MT4 trading platform, the better it is for the trader. The trader has the option of using the mobile trading platform so that trading can be done anytime, anywhere. Just make sure that the trading platform has an ergonomic interface and is compatible with all types of browsers.
Trading platforms also have the various trading tools that traders can use to make better trading bets. A good trading platform is equipped with advanced trading tools in the form of indicator charts, economic calendars and the like.
A plus point is an additional dynamic demo account for first-time traders. With this trial-and-error account, the trader can navigate through the markets and apply different trading strategies for better trading options. Choose a forex broker that offers an advanced trading platform with a demo account.