Most frequently asked questions about brokers
Discussions about choosing a broker are a common topic on forums and blogs, but beyond the specific discussion of which forex broker is best
for trading, there are a host of questions that arise for almost every trader.
Besides reliability, there are a host of other factors to consider. While they don't have a dramatic impact on trading, it's useful to know them.
So, what's useful for any trader to know?
1. Spread size – this is a good indicator of a broker's greed. The average spread for EURUSD shouldn't exceed 0.5 pips. However, if it's significantly smaller than this, your broker is profiting from wasting deposits.
2. Spread rebate - Almost every broker offers a rebate , which can reduce your spread by 20-40%. To do this, contact customer support, and if such a service exists, they will forward your request to the partner who referred you to the company.
3. Are there Russian brokers? - Yes, they exist, but they are mostly registered in offshore zones, which is safer due to the changing Russian legislation. Therefore, almost all DCs have Russian-speaking staff, offices in Russia, and websites in Russian, but they are never registered.
4. Fraudulent Brokers - Surprisingly, there are not many outright scammers in the Forex market. Managers are often negligent in their work, which results in failures for which the trader, not the brokerage company, pays.
In addition, traders may be offered paid services, the need for which is questionable, such as trading training, CDs, books, paid terminals, expert advisors, and scripts . All of this can be obtained completely free of charge.
5. Unpleasant surprises include withdrawal delays of up to a week, daily withdrawal limits, a ban on scalping, a ban on expert advisor trading, and widening spreads.
Any broker is a commercial organization interested only in its own profit, so preserving and increasing your money is your responsibility alone. Always carefully read the additional terms and conditions of contracts and don't hesitate to take advantage of any additional forex bonuses offered by brokers.
