How to choose a Forex broker for a beginner, with the best trading conditions
Every beginning trader asks the question of how to choose a Forex broker at the very beginning of their career; it is from this step that the organization of trading begins.
Knowing how to choose a Forex broker is half the battle, as the safety of your capital depends on the right choice; a wrong decision can result in a complete loss.
There are several factors that investors typically pay attention to: reliability, trading conditions, account funding methods, and, of course, the availability of bonuses.
But there are also other, hidden conditions that you'll only learn about after you start trading for real. These should also be taken into account to avoid unpleasant surprises.
First, let's look at the main criteria for choosing a broker, which are essential and which best characterize the company.
Reliability of the brokerage company
Reliability – information about the brokerage company itself, its length of existence, and the level of client trust. In this case, don't rely solely on the dealing center's website; everyone will only write positive reviews about themselves.
The most important criterion is the broker's registration period. There are now companies operating in the forex market for over 20 years, but a new broker always carries a higher risk, as there's no guarantee of their honesty and integrity. Problems typically arise with brokers registered less than a year ago.
Pay attention to when the domain was registered; there are plenty of scammers online who claim to have been in business for a long time, but in reality, they've only just registered. This can be done quite easily using specialized services.
Read reviews online, and it's best to work with reputable brokers; this way, you'll be guaranteed to avoid any pitfalls.
A reliable broker will typically have won numerous awards in international and Russian competitions and be featured in the press, while a dark horse will likely leave you without a trace.
How to choose a Forex broker based on trading conditions
Trading conditions – the more favorable they are, the more you can earn. You should focus primarily on parameters such as:
• Spread – floating or fixed. A floating spread can be much more profitable if you trade during the day, but you must always monitor its value, otherwise you can open a deal with a spread of several dozen points.
Moreover, the actual spread size can only be verified in real trading; it is usually difficult to find a broker who does not embellish reality.
• Leverage – most brokers offer leverage ranging from 1:1 to 1:1000 as standard, but there are limitations when trading larger amounts. The leverage may also depend on the asset being traded; for example, Bitcoin rarely offers more than 1:10. It is advisable to open an account with adjustable leverage.
• Margin – its value is important when trading short-term; with a small margin, you can open maximum-volume trades.
• Swap – a fee for holding a position open overnight; it is advisable to choose swaps without additional fees, as the fee is charged based solely on the difference in interest rates.
Bonuses provided to clients
Bonuses – many traders open accounts based solely on this factor when choosing a Forex broker, completely forgetting about trading conditions. As a result, the bonus received is lost due to high commissions.
Many companies offer up to 100% of the account deposit amount, which can be used for trading, and profits from successful trades can be withdrawn.
There may also be other bonus options that allow you to test the quality of the services provided.
Hidden conditions to consider when choosing a Forex broker include:
Maximum number of trades – this indicator is especially important for those planning to trade using a scalping strategy , where more than 100 trades are made per account per day.
The selected broker may block such an account without warning for violating the terms and conditions. There may also be a minimum transaction duration limit, meaning you cannot close a position before 5 minutes.
Expert Advisor Trading – Some companies prohibit trading with automated advisors, so if this isn't specified in the contract or on the website, be sure to check with customer support.
Withdrawal conditions – the time it takes for funds from the trading terminal account to appear in your bank account or WebMoney wallet. Surprisingly, there are many dangers lurking here, the main ones being:
• Delays due to holidays and other circumstances, meaning you won't be able to see your funds for a week.
• Withdrawals can only be made using the same method used to deposit funds – for example, you deposited funds via bank transfer and want to withdraw to WebMoney, but it's not available.
• Huge commissions, sometimes reaching 4-5% for some withdrawal options, which is more than a little excessive these days.
The question of how to choose a Forex broker isn't exactly easy to answer. I've been working with three brokerage companies for ten years. Why three? Because each broker has its own advantages that suit a particular strategy. Therefore, you can take advantage of the best from each company.
The best brokers are listed in the rating on our website - http://time-forex.com/reyting-dilingovyh-centrov
The top positions are held by brokerage companies I've personally worked with and whose services I'm completely confident in. They have never had any issues with their trading platforms or delays in paying out earned profits.
