How to choose a Forex broker for a beginner, with the best trading conditions
This question of how to choose a Forex broker is asked by any novice trader at the very beginning of his career; it is from this step that the organization of trading begins.
After all, knowing how to choose a Forex broker is already half the battle, because the safety of your capital depends on the correct choice; a wrong decision can result in a complete loss of funds.
There are several points that investors usually pay attention to - reliability, trading conditions, methods of replenishing an account and, of course, the availability of bonuses.
But there are other hidden conditions that you will learn about only after you start real trading; they should also be taken into account in order to avoid unpleasant surprises.
First, let's look at the main criteria for choosing a broker that you need to pay attention to and that best characterize the company.
Reliability of the brokerage company
Reliability – information about the brokerage company itself, the time of its existence and the degree of customer trust.
In this matter, you should not trust only the website of the dealing center; everyone will write only the best about themselves. The main criterion in this case remains the period of registration of the broker, now there are companies that have been working in Forex for more than 20 years, a young broker is always an increased risk, there is no confidence in his honesty and integrity.
As a rule, problems arise with brokers registered less than a year ago. Please note that when the domain was registered, there are plenty of scammers on the Internet who attribute to themselves long periods of existence, but in fact they have only just completed registration. This is quite easy to do with the help of special services.
Read reviews on the Internet, and it is best to work with well-known brokers themselves, in this case you will definitely be insured against mistakes.
Usually, a reliable broker has a lot of awards in international and Russian competitions, reviews are published about it in the press, and a dark horse will most likely leave you without money.
How to choose a Forex broker based on trading conditions
Trading conditions - the more profitable they are, the more you can earn; first of all, you should focus on such parameters as:
• Spread - floating or fixed, floating can be much more profitable if you trade during the day, but it requires Always keep track of its value, otherwise you can open a deal with a spread of several tens of points.
Moreover, the real size of the spread can only be checked in real trading; it is usually difficult to find a broker who would not embellish the reality.
• Leverage – as a standard, most brokers provide leverage from 1:1 to 1:1000, but there are restrictions when trading large amounts.
Also, the size of the leverage may depend on the asset used in trading; for example, for Bitcoin, rarely does anyone give more than 1:10. It is advisable to open an account with the ability to adjust the leverage size. • Margin – its value is important if you trade at short intervals; with a small margin you can open transactions in the maximum volume.
• Swap is a fee for transferring a position to the next day, so it is advisable to choose swaps without additional commissions, when the fee is charged based only on the difference in interest rates.
Bonuses provided to clients
Bonuses - many traders open accounts based on this indicator only when choosing a Forex broker, completely forgetting about the trading conditions; as a result, the bonus received is lost due to high commissions.
Many companies provide up to 100% of the account replenishment amount, and these funds can be used in trading, and the profit received from successful transactions can be withdrawn.
There may also be other bonus options that allow you to test the quality of the services provided.
Hidden conditions that you should pay attention to when choosing a Forex broker include:
Maximum number of transactions - this indicator is especially important for those who are going to trade using the scalping strategy , when more than 100 transactions are carried out on one account per day.
The selected broker may block such an account without warning for violating working conditions.
There may also be a limited minimum lifetime of one transaction, that is, you do not have the right to close a position before 5 minutes. Trading with advisors - some companies prohibit trading with automated advisors, so if this is not specified in the contract or on the website, be sure to check this point with the support service.
Conditions for withdrawal of funds - the time during which funds from the trading terminal account will appear in your bank account or webmoney wallet.
Surprisingly, a lot of dangers await you here, the main ones may be: • Delay due to holidays and some other circumstances, as a result you will be able to see your own money only in a week.
• Withdrawal only in the same way as the deposit was made - for example, you topped up your account by bank transfer, but want to withdraw to WebMoney, but that’s not the case.
• A huge commission, the size of which sometimes reaches 4-5% for some withdrawal options, which is more than a lot today.
Indeed, answering the question of how to choose a Forex broker is not so simple; I myself have been cooperating with three brokerage companies for ten years. Why three at once, because each broker has its own advantages that are suitable for a particular strategy. Therefore, you can take the best from each company.
The best brokers are compiled in a rating on our website - http://time-forex.com/reyting-dilingovyh-centrov
In the first place are brokerage companies with which I have worked personally and in the quality of the services provided I am completely confident. They do not have problems with the operation of trading platforms and delays in the payment of earned profits.