Negosentro | How to Choose Brokers for Trading
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All countries have their specifics when it comes to business, even to an international one like trading. But to choose your Forex broker and forex trading calculator, follow some rules, and chances are you will succeed and prosper will be higher.
First of all, the broker should be reputable. Alas, you cannot just rely on reviews online because many of them are fake, ordered either by broker or by rivals. So you better look at the following things:
- Who regulates its business? It’s better if a reputable body stands behind it and prevents it from playing unfair (like freezing deposits as you try to withdraw funds). In some countries, this trusted body is SEBI. If an unapproved broker offers you better terms, you accept them at your own risk.
- Local contacts. It’s great if the broker has an office and a support phone in your country. At least, it should be able to call you back wherever you are (callback feature).
- Leverages and stop-loss orders. As you trade with high leverages, your losses may also be bigger than your deposit; that’s what margin calls and stop-loss orders are for. If they prevent you from losing more than you invest, that’s great.
- Openness. The broker should explain openly how to contact the support, how to withdraw funds, and so on. A demo is also an important part of it.
As for reviews, you better check whether they are fake. It’s suspicious when reviews on a third-party site are written during a short period of time, by the same person in the same style, and are all too positive or too negative.
The platform matters. How long does it take to create an account? Is there a demo you can use? Does it support your payment system? Is there support in your language? The less you care about how it works, the more you focus on trading itself, and the better results you can achieve.
Is there a desktop and a mobile app? Can you add your personal indicators to the application? Are markers clear enough to notice them at a glance? Are captions easily readable? Does it feel good for your eyes? Are there any other inconveniences? Your workspace should first of all feel good, or you’ll be too distracted to be efficient.
It’s one of the most important things when you trust someone with your money: won’t they just disappear? The risk is lower if the broker can be contacted at any moment. There must be a street address and a phone number by which they can be reached. The registration may be foreign, but the contact information should be present.
We’d recommend starting with small sums and then, when you have something to withdraw, check how quickly they react, how well support works, and so on. Even if everything is clear, you better contact support and ask them questions about withdrawal. This will help you evaluate how well the support works: how quickly they react, how comprehensible the explanations are, and so on.
We hope these recommendations will help you succeed in trading. Even if you decide this is not the business of your life, the experience will be useful to you. And if you turn out to be a natural born trader, it will be due to the fact you try it the right way from the start. With all the good wishes!
Photo by Anna Nekrashevich from Pexels