How to choose your broker
How to choose your broker?
The Most important is the regulation
If you are in the middle of a search on a Forex broker, you belong to one of two categories. Either you have a lot of experience in forex trading and consider yourself as a veteran in foreign exchange trading and dissatisfied with your current broker and want to change for the best, or you are a beginner and want to learn how to make a choice.
If you are a beginner in this market you are most likely at a loss, and you are entitled to do so. Forex is a booming, lucrative and currently profitable industry. It is the perfect choice as an alternative to the stock market. Every day, new brokers offer currency trading services, spending thousands of dollars on advertising. So much so that you see ads from these companies wherever you go. In this article we will talk about how to choose your forex broker
How do you identify a Forex company?
How will you eliminate confusion, uncertainty and anger and move to that exhilarating comfort that accompanies the selection of a broker that actually does not seek to steal your money? Or lose your account. Or say the word “we have technical problems” Let us see:
First: Licensing, Licensing and Licensing
If a Forex broker has a business license, this ensures that the criteria and capital requirements are met all the time and that they manage the deposits as required by the laws and not according to the greed of the corporate owners, and must act as described by the licensed body.
In fact, Internet forums are full of those horrific stories as the company stole this and did not recognize it and was the main cause of another loss. Have you been exposed? Tell us about it with comments.
In my personal opinion you should seek the companies licensed by the British Control Commission (FCA) because they are the strongest at the time of writing this article. It obligates companies with a certain capital and deposits their customers in accounts completely separate from the company’s account, etc., which guarantees the right of trading customers. With the insurance of customers from the bankruptcy of the company. So we recommend that you register a real account from this company from here
There are certainly many licensing agencies around the world that license Forex brokerage. But the best for traders in the currency market is the British comission . They effectively protect the trader-dealer-from the heavily dispersed monumental methods of late
Second: commission and costs
Commission is a predefined percentage tracking for the size of currencies sold eg (every 1 lot is $ 12). Spread is the difference between the selling and buying price, and brokers receive a predetermined percentage of this difference. In many cases brokers openly declare that they have a low spread on foreign exchange transactions, and compensate for this by imposing a high commission rate. Be careful of this kind. I have a friend living in an Arab country who has been working with an unlicensed local broker. This broker receives 9 points spread on the euro and $ 50 commission per lot. Meaning when you open a deal of one lot size there is an initial outstanding loss of $ 140 which is a very large amount. It adds a major handicap in the way of rolling to success. Beware of these companies.
Our advice here is to take a spread without commissions so that the spread on the euro does not exceed $ 2.5.
If you choose a little spread with Commision commissions, the transaction cost should not exceed $ 25 per Standard Lott. You will find these terms in the company that you are recommended to register from here.
Some companies also impose annual costs on the account, some of which impose costs on withdrawals and deposits. In some countries there are taxes on trading profits. All of this should be taken into consideration when choosing your Forex company.
Third: Ensure execution and speed
Unfortunately, you find many brokers do not execute orders to buy and sell at the desired prices. On the contrary, they make a default price slippage (because of slow execution) so they execute your order after 5-10 points and in some cases 25 points. Also, it becomes difficult for you to profit from this transaction and in most cases the transaction is closed on a loss especially if you are one of those who trade within the day on the candles quarter hour and five minutes
In other cases, some companies do not do stop loss, so the deal loses more than planned
You must make sure that the company allows for rapid trading – Scalping – and news trading (Scalping on the news) because it is possible to take advantage of economic events in order to inflict heavy losses on your account.
In addition, you have to ask if the company accepts the trading of pending orders. Some companies do not accept and the other request that after the outstanding demand for the current price more than 20 points.
We advise our clients to register with the following company from here
Fourth: Types of currencies offered
It is important that the broker offers a wide choice of currencies (EUR – USD – GBP – CAD etc …), metals (gold – silver – copper … etc) and energy products such as oil
Some companies do not offer to 20 pairs of currencies to trade them
Some offer stock speculation
You must have full knowledge of the Forex company’s products you choose.
Fifth: Customer Service
Of the most important things. There must be genuine customer service in your native language. It must certainly be easy to reach them. Unfortunately, some companies that have become famous in the Arab world do not pay attention to customer service. At one time I waited on the phone for more than 8 minutes on an international call and finally the receptionist told me the manager of your account would contact you again.
In the end he did not call the next day. At the beginning when you do not have an account the company is ready to contact you a thousand times per second. After opening the account and deposit. They do not answer, neither on Emile nor on a message, nor on their phones. They evaporate
The goal here is to make sure you get excellent customer service in the event of an error or a problem with the transfer or withdrawal from your right to have a department that supports you and solves your problems. And in your language.
Sixth: Trading Platforms
The most popular trading platform around the world is MetaTrader4 – MT4 platform, which is a convenient platform for traders in general. But trading platforms are not limited to them. In fact, there are many platforms that provide trading and analysis service from the computer and mobile for the same time.
generally. We at RabihFX recommend that you make sure that the forex broker gives you the option to trade and analyze using the MetaTrader 4 platform.
Seventh: Value added
Some companies offer free lectures and others offer free recommendations (do not trust their recommendations at all, especially if they are market makers). Some of them offer a bonus, caution me and warn me not to fall into the trap. Never believe that a company will give you free money. When a particular company displays the bonus, it creates complex withdrawal conditions. You actually close the deposit and prevent the withdrawal until you trade a certain number of blocks that you can not complete and increase the chances of failure and frustration in the trader.
Recommend regulation comissopn are :
- FCA United kingdom
- Cysec cyprus
- ASIC australia
Recap of this article :
1- Regulation is the most important when choosing a forex broker
2- Low spreads
3- customer service
5- Preferred broker type is ECN,STP NDD
Confused check our recommended brokers below wich meet the criteria of safe trading:
Our best Regulated Broker is :
1- The company is recognized by some of the most trusted financial regulatory bodies – FCA and ASIC.
2- Tigh Spreads
ThinkMarkets is the proud winner of the year in the categories Best Forex Trading Experience & Best Forex Trading Innovation by the UK Forex Awards 2017.
Why avatrade ?
- Multi Regulation worldwide
- Low spreads
- Offer mt4 and social trading via zulutrade
- No comission on deposit and withdrawal
- Offer currency,indices and stocks
Why Fbs ?
Regulated by :
FBS Markets Inc is regulated by IFSC, license IFSC/60/230/TS/18; Address: No.1 Orchid Garden Street, Belmopan, Belize, C.A.
a) Incoveniance : only 1 regulation
alternatively Fbs have very good trading conditions and customer support that why we have listed as N° 2 choice
2- Low spreads
3- Multi accounts type from cent to standard and ECN
We prefer always ECN accounts as it offer trasnparency Ecn mean that there now intermdiate between you and the market prices.
4- Offer copy trading platform for smartphones
8- FBS MARKETS have over 8 Millions clients worldwide
Etoro is very good trading platform for beginners easy to manage and it’s the leading social trading platform in the world
- Regulated By FCA and ASIC
- Very Good for beginners
- Social Trading platform
- Fixed spreads
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