A prudent trader knows that learning about the right ways to select a forex broker is an integral part of forex education. And, don’t think beginners can’t be sagacious. They can be! Most of the successful traders out there must have been sagacious enough to plan their foray into the market carefully. Yes you can act wisely even with all the nerves – typically associated with a beginner. Discussed below are a few signs that tell you are choosing the right forex broker.
Choosing the right broker: These are the “signs”
The choice of a good broker makes the job easier for you. We will tell you how. A forex broker is very simply described as a trader’s connection to the vast market out there. It offers you the forex platform where you trade and of course the charts, graphs and market reports to facilitate market analysis. So what are the factors that you should keep in view while you are in the process of selecting a forex broker? These are the signs that tell you that you actually on your way to choosing the right broker:
When you are focusing on the offerings of multiple brokers
Forex is a massively lucrative market and it is not really difficult to find its participants. You basically have a plethora of choices as far as forex brokers are concerned. So you ideally should not restrict your choice to just one or two brokers out there. Find out what at least five to six leading brokers are offering in terms of number of platforms offered, the brokerage fees and the time limit to use the Demo Account for free etc.
When you are checking out the number of trading platforms offered by the broker
Does the broker allow you the freedom to try out different trading platforms before selecting one? Don’t forget that not all trading platforms are created equally but to suit different comfort levels of different traders. While most of the beginners might like to stick to the more simple (frill-free) platforms, there might be a few who are more comfortable trading on the more advanced platforms. So, the broker should ideally have a mix of most of the types of the leading platforms in compliance with the trading styles of different traders.
If you are selecting a broker backed by highly intuitive interface
You should be prudent enough to select a broker that offers services that are easily accessible through desktops, mobile devices and tablets. Make sure you are able to keep a watch on the market even while you’re on the go. Ideally, you should have the liberty to access the market anytime during the five trading days. Forex operates 24 hours during the business days. You should not choose the services of brokers whose sites are down for maintenance during the crucial hours of trading. You can check out easymarkets.com in this regard.
When you are checking the credentials of the broker
Please ensure that you are only selecting forex brokers with proper reputation in the market. There are several avenues to check whether a particular forex broker is reputed or not. Visit the neutral review sites and look up the forex forums to find out if there is a discussion on the same going on or not. Quite unfortunately, the power of neutral review websites to govern your choice of the broker is still undermined. Now, what do these review websites offer you? Quite simply put, they contain personal experiences of traders with several brokers. There is a lot to be paid heed to! After all, it’s the seasoned traders who are speaking!! They have taken the trouble to share their experiences with brokers – so that beginners take a cue from them and determine the choice of the broker! The question is – how many of the beginners “listen” to them? The answer is “not many”. As a beginner yourself you can hardly do anything better for yourself than investing proper time in these review sites and act on them.
For instance, if you see that one of the seasoned traders has absolutely dismissed the services of a broker that you are considering at present, then you should ideally seek avenues to get in touch with the trader and ask him why he has done so- why he has criticized the particular broker. State that you are putting forward the question because you’re keen on hiring the services of the same. You can look up for the trader’s e-mail id or his social media profiles in order to get in touch. Not many take these measures fearing they will be time-consuming. If you have chosen to invest due time then you are on the right track.
Are you checking the discounts and bonuses offered by forex brokers?
Last but not the least, you might also want to check out the forex discounts offered by several brokers while you’re opening your account with them. This is a way in which brokers look to attract more traders. You can check out who is offering what in terms of bonuses. Not that they should be the sole factor governing your choice of the broker but you can definitely check them out before opting for services.
Do you take these steps when you are hiring a broker? If not, then you should seriously rethink your choice. The right kind of education bolsters sagacity. There are so many factors that govern your fortune in trading. As is already mentioned, your broker is your connection to the currency market. Prudent traders understand the significance of being guided by the right broker. So, make sure you are executing a choice with due prudence.
The primer, we are hopeful, has been of help. Your homework should ideally take up a month. You can understand the kind of time you have to invest for fulfilling each of the aforementioned responsibilities. Not many newbie traders have the patience to conduct this kind of survey. However, patience pays off in the best possible fashion.