How to Choose the Best forex Broker
The most important aspect of profitable trading is choosing the right forex broker as it will save you a lot of worries, hassles, and inconvenience. Generally, all publications purposefully provide false information, making many traders to erroneously believe that success in trading is dependent on psychology, money management, and what trading system you adopt. However, this is not the case.
Below are four main requirements that a good forex broker should meet:
1) Security of the capital and broker’s regulations
This is certainly the most important condition. All brokers must be regulated, and client funds must be handled separately from corporate funds. Now, most brokers meet these requirements and these requirements are the standards in the industry. It is better if the forex broker does not have any fines because fines are usually the most recent response to unfair practices.
2) Fast deposits and withdrawals
Another standard a quality broker should have is to make it possible for clients to make quick deposits and withdrawals by bank transfer within one to a maximum of two business days.
3) Achievement of the most profitable results
This is, of course, the guiding rule of success in the financial markets and undeniably our top most priority.
Several traders believe that they will get the most profitable results with brokers that have the lowest spreads. Consequently, the only thing that they are interested in is spread. This is, however, a big mistake, and in truth, the complete opposite happens. The golden counsel to remember is that the lower the spread a broker has, the more likely he is to take from somewhere else to compensate for it.
It depends on whether the broker’s main goal is the profitability of his clients. In that case, he will settle for lower profits in the short term while making his clients satisfied in the long term.
Or, on the other hand, if winning as many clients as possible is his business model, he will have a great interest in his clients’ losses, and therefore, have many short-term clients.
The broker you choose may affect the outcome of your trading in several different ways. The quality of his technology, his quality of liquidity providers, and his relationship with his clients will all impact your results. Again, if he uses any type of unfair practices such as widening spreads, artificial slippages, freezing trading platforms and others, you will be affected as well.
The real quality of a broker can be found out only after tests on real accounts. Professional information and experience at the beginning of your sojourn in the financial market is worth the price of gold and will save you significant financial resources that you will spend in the process of gaining knowledge and experience.
4) Overall behavior and approach of a broker
You should be wary of any broker who behaves in the following manner: forceful phone calling, investment advice, and enticing deposit bonuses, high financial leverage, extremely low-cost spreads, or flaunting of their expensive sponsoring of international football clubs, formulas, and so on. None of these approaches belong to a professional broker.
It is expected of a professional forex broker to show kind behavior and to focus on creating the required environment for profitable trading. Any professional broker should not have any problem meeting your requirements. At the same time, the broker should not be afraid of talking about the facts that might be displayed by certain websites and should be a partner in whom you can trust.
It is quite critical for forex traders to always remember that their choice of a broker will determine whether they are going to be able to achieve long-term profitable results in the financial market, or whether they will lose options for profitable trades. They should make sure they choose the right broker before looking for a trading system, improving money management, or obtaining any training in psychology.