Finding out how to choose a broker?

Эта запись также доступна на: Russian French Portuguese (Brazil)

When a trader decides to extract earnings from a marketplace, he needs an intermediary to endow him with access to the platform, ie. at the brokerage firm. The question of how to choose a broker is a difficult task for both a beginner and a professional speculator. A specific pre-screening of the dealing center is required here.

Peculiarities of choosing a dealership

As one of the primary (and most significant) challenges facing a stockbroker is how to choose a stock broker. This choice is considered a subjective action depending on several personal aspects. Firstly, the trading tactics outlined by the player and how effectively the trading criteria of this company allow it to be implemented. Second, the preferred software platforms and their availability with the intermediary. Thirdly, the geographical location of the trader and the associated technical, legal aspects of accessing trades through that company. Fourth, the most comfortable deposit/withdrawal methods.

How to choose a broker: criteria for determining

1. Trading conditions – the arsenal of traded assets; software tools (terminals); the smallest deposit amount; its currency form; the starting order volume and the minimum distance of its adjustment; the degree of Stop Out/Margin Call; potential leverage values; the size and type (fixed or floating) of spreads; the requirements for postponing financial operations to the next day and swap indicators; the requirements for placing and executing orders; the presence/absence of commission for the start and completion of orders; the chance to use robots; e
2. The web resource of the dealing center is an important aspect in the question of how to choose a reliable broker. Each organization can tell a lot about itself through its portal. A company that cares about its own reputation, loves and appreciates its users – will always look on the Internet at a decent level.
3. The firm’s period of operation – the impressive track record of the structure testifies to a lot of things. The first is that the threat of meeting with a one-day company is immediately leveled. The second is that the workers of such an organization are likely to be experienced. Third, it is easier to find a lot of information about a long-established broker for an objective assessment of its positive and negative qualities.
4. Reputation – a huge number of rating lists of companies can be found online. Besides, enough information is placed on specialized forums and news sections of various financial sites. When analyzing comments, characteristics and reports, one should not forget that loyal traders usually do not like to publicly express their opinions than those market participants who are not satisfied with something. Retail forex is an area of heightened rivalry, where dealership firms often use “black PR” to outmaneuver their peers in the war for the customer.
5. User support is a significant point in deciding how to choose a broker for trading. The level of support from the company can be checked even before starting trading, and even before authorizing an account.
6. Methods of depositing/withdrawing finances – the more potential options, the better. The lion’s share of firms offer to deposit and withdraw money via bank transfer, credit cards and various EPS.
7. Regulation – the work of a brokerage organization is controlled both by government agencies of different countries and by different communities that unite market players. The task of the regulatory body is to establish trading requirements, control their fulfillment and solve various conflict points. Not all offices comply with the regulations of the controlling agencies. In this regard, quite often brokerage structures are registered in offshore countries, where there is no control over financial functioning.

In addition to the above, there are enough other aspects that can be emphasized to a possible client within the definition of a company. We are talking about the dynamism of advertising; the number of branches in the state and the world; awards received at various competitions; training programs for beginners; the number and quality of analytical articles covered; various promotions, welcome rewards, etc. The main thing to realize is that the dealing center is not a dream performer, it is only a tool that can give a misfire. If the tool is not performing well, you simply need to replace it.