Choose a forex broker
At present there’re several forex broker online via which the traders may trade in forex market on internet from everywhere globally. The whole brokers don’t provide the same packages. Therefore, all brokers may not be suited with your need.
The trader must know that how to select suitable and reliable forex broker that based as per their requirements. In such guide we’ll explore different important criteria that one must consider as comparing different brokers.
1. Broker Type:
The forex brokers may be alienated into 2 types, ECN broker and dealing desk.
The brokers of dealing desk are known as brokers of market maker. In the broker of dealing desk, the dealer frequently gets an opposite place to the trade. 1st, they’ll look for the other suitable choices with order. So, they don’t find some appropriate orders by your order after that they’ll open opposite place to the trade. The brokers dealing desk generally earn money from spread. The brokers dealing desk typically don’t change some other charges beside such spread.
The ECN, matches orders electronically. They don’t open opposite place to the trade if orders don’t match with the others. In such case, your deal wouldn’t be implemented at what time you’ve placed. There’re several people think that the brokers of ECN don’t have some interest in the result of trading that isn’t true. Actually, the ECN brokers wish you to earn profit so that’ll carry on the traded with those people like they earn money from trading commissions which they indict for every side of the trading.
2. Regulated or Non-Regulated:
Regulation is very important role of broker in the case of selecting a dependable broker for fx trading. There’re several problems with the unregulated brokers. Stipulation, they cause some problem regarding you money deposit or trades, after that you’ll not have someone to protest about them.
Conversely, you may protest against the regulated brokers stipulation you face some problem. Just being the regulated isn’t the whole thing. You require finding the broker that’s regulated under legal protection well as a law.
There’s totally no point for account or else trading in unregulated or else badly regulated broker it doesn’t matter that how smart features which they offer. Many regulated brokers issue their regulation registration number so one may examine their regulation as well as know regarding their policy of regulation. The trader must as well select a regulated as well as dependable method of deposit & withdrawal.
3. Offered Account Types:
There’re different accounts types provided by various brokers. Many brokers provide demo, micro, mini and standard accounts. Such accounts are dissimilar about trading size or lot size. Such accounts can differ broker to the broker.
In some broker’s case, the standard account signifies that you must trade in complete standard lots. Conversely, few brokers can permit to trade with fractional lots in the standard accounts. The spreads and trading commissions as well differ relying on trading account types. Bigger types of trading account are provided with less trading spreads and commissions carry the larger trading spreads and commissions.
The traders must select broker’s trading account that suitable with initial deposit, level of risk tolerance and trading strategy.
4. Offered Trading Platforms Types:
It is very important part on selecting forex broker. Various brokers can provide various trading platform types. There’s no ideal platform in globe, but clearly few platforms are much better than the others.
The trading platform must be augmented with features, trading packages and charting. A trader must make a decision for suitable platform of trading. After that he/she must look for the broker who provides such platform of trading and also complete the criteria of other dependable broker.
The trading platforms that are based on MetaTrader are very famous in the case of fx trading. Nevertheless, there’re some other trading platforms of home-made provided by the brokers which are as well as reliable and famous, like FXCM and 500.
Trading Platform-special features:
Few brokers provide special features together with their platforms of trading. Such features are effective and handy thus several traders select such platforms for the trading. For instance, IBFX offers their own made Expert Advisors as well as indicators, the Etoro comprises the option of copy trading to their platforms of trading. The FXCM provides latest multiple time period charting technique as well as the other extra indicators et cetera. If you require such extra features in trading in that case you must select a broker which fulfills your needs.
5. Commission & Spread:
The trading spreads and commissions are the major earning of fx broker. The trader must pay spread or commission or else both when he/she build the trade in broker. The trading spreads and commissions aren’t for the all brokers as well as these differs broker ~ broker.
Few brokers provide tight or low spread, some provide variable spreads, some provide fixed spreads, few provide high commissions of trading et cetera. Usually, the larger account size the spreads amount of a spread in the pips like brokers have the higher commission because of trading in the larger size.
There’re as well few brokers those provide tight or low spreads in the small accounts also. Such brokers are so famous for the small traders by initial deposit. You must select the broker that provides suitable environment of trading with lesser trading spreads and commissions.
6. Methods of Deposit & Withdrawal:
The methods of deposit & withdrawal differ broker ~ broker. There’re several brokers who permit a huge payment range methods for the deposit & withdrawal however their instruction isn’t that enough reliable. Conversely, many good regulated brokers permit the limited methods of payment.
This makes a critical situation for the trader to select broker with very strict regulation as well as suitable methods for payment simultaneously. Nevertheless, there’re few brokers which are good regulated and as well permit different methods of payment besides credit card, bank wire et cetera.
7. Customer Support Service:
All forex brokers offer customer support service via different ways. Few brokers offer customer support service through one method just like email support. Few brokers can offer customer support service via different ways like live chat, fax, telephone, email et cetera.
Few brokers may offer customer support service twenty-four hrs a day nevertheless others can offer customer support service for limited era a day each week. It’s important for the trader to select broker who offer 24/7 customer support service in order that he may contact with as well as have the solution instantly.
If you have some problem regarding broker or else require knowing something about broker in that case you must make a contact with their customer support service centre. Therefore, it’s important to select an easy and very caring broker. Few brokers as well provide an option of call back that is an extra feature of the forex broker.
8. Rebate or Bonus:
Several forex brokers provide promotional services, bonuses and rebates. These bonuses and rebates may be helpful in several ways. The rebate or bonus provides are various and differs broker ~ broker.
Few brokers provide no bonuses deposit that is handy in the case of beginners as they may learn and practice trading by using such bonuses. Few brokers provide bonus on initial deposit that is helpful to avoid the margin calls. Few brokers have policy of rebate for the traders that work like extra earning for them. Percentage or amount of rebates and bonus can vary in different times in the case of similar broker.
Bonus provides as well vary from broker ~ broker. Nevertheless, high bonus provide isn’t just marker of good broker; few cases insecurely regulated brokers provide high rebates and bonuses to attract extra traders. So the traders must not select a broker relying on the rebate and bonus associated promotional offers. Securely, the regulation as well as the other factors must also consider nevertheless selecting the broker.
It isn’t necessary and possible that the good broker must fulfill the whole needs mentioned above. However you must know that what features that you require prior to selecting broker. After that, you must look a broker which fulfills your need. Missing few needs stated above doesn’t mean that broker isn’t good for the trading. Nevertheless, there’re few main needs that all the brokers must fulfill.
Choose a forex broker