TIPS FOR CHOOSING THE RIGHT BROKER
Choosing the right forex broker is one of the most important things to do once you decide to start into the world of trading. Looking for an online forex broker seems an easy thing to do now, but choose the most reliable needs attention and selection.Each forex broker offers different services and your decision to choose among the many best forex broker who has been there. Thus, every trader must remember that efficiency in the forex market and profit in the future will depend completely on the forex broker you choose. Doing the right approach by finding all the available information about a forex broker will help you in your selection.
TIPS AND GUIDE TO CHOOSING THE BROKER:
To choose forex broker in the modern world will take quite a long time, you should be able to see the deficiency and advantages with read some testimonials from other forex traders and join in the forex forum to be able to discuss and sharing with them. With the Internet, all the things you are looking is fully available.
10 Tips on choosing a forex broker
1. Reputation
It is advisable to choose broker that already has a long experience in financial and forex industry. If the company had set up less than 1 year, then you need to think again before joining.
2. Regulasi
Regulation is very important so that they can be monitored by the authorities. A trusted broker will have clear regulations and published to everyone by listing them on their website.
3. MARGIN AND LEVERAGE
Make sure you really aware of how your broker calculates margin requirements and whether it changes according to the currency pair traded? Whether fixed or variable at different times?
4. Trading Platform
A good trading platform should not only show the real price that allows traders to "Buy" or "Sell", but also a number of other features such as charting, technical analysis tools and forex news. Currently the most famous trading platform is the metatrader.
5. SPEED IN ORDER EXECUTION
The speed of order execution is very important especially if you are a trader who has scalping style, you can not sit and wait 5 minutes just to confirm the order that has been executed. To try the speed execution is to try it out first on a demo account.
6. TECHNICAL SUPPORT
Best forex broker will provide technical support for 24 hours. The support can be by way of phone, email, chat, etc.
7. ESTABLISHMENT YEAR AND DEVELOPMENT OF BUSINESS
Years in operation in the forex market is usually used as a sign of financial stability of the broker, well-established business processes, able to develop a risk management system and improve the professional skills of its staff. The dynamics of positive development (new service offerings, opening new branches) also showed a serious activity of broker in the business. However, new company does not mean that these services are not professional; in fact, many of new Forex brokerage company also professional.
8. REGISTERED COUNTRY BROKER AND ITS REGULATION
Countries where broker registered are also important. We have seen that the legislative authority all developed countries are very strictly regulate the activities of brokers, prevented them from carrying out any illegal machinations against the assets of their clients. Moreover, in these countries is almost always possible if we want to apply directly to issues in the event of a dispute with a broker. The brokerage firm registered in third world countries (offshore) are not strict in control and monitoring the brokers, so you have to pay attention.
9. CLIENT SECURITY FUND
You need to know how brokers protect clients' funds in terms of preventing things that are not desirable, just in case. Especially in the case of bankruptcy when the broker can not fulfill their financial obligations to the client. One of the easiest ways to limit risk is the separation of bank accounts. This means that the client's funds and funds deposited in segregated accounts so the broker can not use client`s assets for their operations.In addition, brokerage firm has its own scheme on an insurance risk. For example, in Cyprus there is a Investor Compensation Fund which is controlled by the CySEC (Cyprus Securities and Exchange Commission). In the event of bankruptcy of the Forex brokers in Cyprus, the client will receive compensation of up to EUR 20.000. In the UK there are also financial services are almost the same but with compensation of up to EUR 48 000. In the United States Forex enterprise clients are not required to insure their funds. However, many brokers USA in cooperation with the major insurance companies so the client by paying a fee funds can insure them against risks that may occur.
10. REGISTRATION AGREEMENT
It is advisable to give special attention to the following points when studying the contract with the broker:A. The Contract - There are brokers who may have multiple legal entities, including registered in many countries, regulated and equipped with all the necessary licenses, and some of them are in the offshore country. A legal entity in developed countries are generally used to promote their company, while legal entities in offshore countries as the parties make an agreement with the client. So before signing the contract you should investigate what legal entity designated as the manufacturer's agreement
B. The Funds - Adding funds to all trading account must be made through a bank account of a company which is a party to the agreement. Otherwise, if the funds are transferred to a third party, it is not clear on who is liable for transferring the proceeds to your account.
C. The contract subject - If other services are different from brokerage services (eg, consulting) are the subject of the contract, you may encounter problems when withdrawal in case of dispute. That's why we advise you to read the broker agreement carefully before opening trading account and depositing your funds.
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