Which Broker Is Best For Forex Trading?
Forex Trading: The world of Forex brokers has seen an unprecedented expansion in the world of retail traders. However, the lack of knowledge about this market is unparalleled.
The Forex market, as a general rule, is an over-the-counter (OTC) market. That is an unregulated market. When we say unregulated, we do not mean that it is not suitable to operate, simply that it does not have the exact requirements as other markets. In this type of market, operators bilaterally agree on their transactions. Therefore, no clearinghouse watches over the interests of the operators.
This point is the first and essential of this type of market. When we go to the FOREX market, we must remember that it is not the traditional stock market. Although the FOREX market can indeed be operated through futures (regulated market), this is not usually the reality of most retail operators. Therefore, we will skip this part since most Forex brokers do not offer this alternative.
What To Look For When Choosing A Forex Broker?
There is no best forex broker. While it is true that most Forex brokers are the same, some peculiarities make them different. And, in fact, very different. Of course, depending on the preferences of each one, the adjective of “the best” can change. For example, some outstanding brokers require you to enter a minimum capital of $5,000. This is not much, but it is a considerable obstacle for a good part of the beginner traders. Above all, it is about starting to operate and becoming familiar with the market.
With this in mind, we are going to list a set of factors that, in our opinion, are the most important when choosing a Forex broker:
Despite this, this is not enough. The entity that supervises and regulates it must have demanding requirements. For example, setting up a broker in Cyprus is much lower than in Spain. This, although it does not have to be the case, allows brokers to have lower costs and offer themselves to the client as a cheaper alternative.
In addition, it is crucial to take into account the country, to know how safe our money is. It is not enough that the introducing broker (IB) tells us; we have to look for it in the search engines of said entities. In this way, we will avoid being scammed.
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Broker’s Attitude Towards The Client
We must choose a broker whose staff does not constantly tell us that we must operate. Some brokers think they are in a Wall Street movie and continuously encourage you to use and introduce capital. This is not the broker to look for. We must find one who treats us kindly and without pressure.If we see any attitude about adding capital to the account or trading excessively, that is not a Forex broker to trust.
Most Forex brokers work with MetaTrader. Metatrader is computer software that allows you to enter buy and sell operations, view charts, and edit them. It is neither the best nor the most professional, but it is very intuitive. Alternatively, brokers often offer their platform, which is often even simpler.
Of the platform, more than having a good interface, the most important thing is that it executes the orders well. Some venues offer problems, they run late, because they are not efficient. In principle, MetaTrader will not offer you big problems. Additionally, add-ons are available to program automatic systems. Automatic systems, incidentally, very fashionable in recent times. In Metatrader, they are known as Expert Advisor.
Fees And Commissions
Retail traders tend to pay more attention to brokerage fees than the above. Unless they charge you disproportionate commissions, the prices are not the most important thing. Being regulated by an authority and having a good attitude towards the client are essential.
Depending on your experience, choosing one or the other will pay you. A more expensive than an average broker is not necessarily worse.
Although a few years ago, it was something exceptional, today most offer training services. Having training services does not make a broker good or bad. What makes it good or bad is the type of content it provides.
Many of them sell their training as premium when you can find better content for free on the internet. We must not get carried away by this. The broker’s function is not to train you but to act as an intermediary. What interests him is that you operate, the better. Since it will take more commissions.
Although it is a condensed summary of the most important details that we must consider, here are brushstrokes of the essentials. In short, we must choose a regulated broker, which presents a good attitude towards our situation in the markets, a decent platform, without disproportionate commissions, and with a training classroom that is serious.
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