Tips for New Traders choosing Forex Brokers
Everyone who decides to start trading faces the question: where to start?
You can access the exchange or OTC markets as a private trader, but it is possible only through a broker. Therefore, selecting a reliable broker is the most crucial task a potential new trader must do. Forex is an international market that unites several brokerage companies. Each company has its advantages and disadvantages, its unique services, and capabilities. Each Forex broker is individual in its way. Sometimes even professionals can not give preference to one or another option.
Getting to know a broker starts with an offer agreement and some regulatory documents. An offer is the leading partnership agreement between a broker and a trader. It consists of the terms of cooperation and links to additional records.
Things you should consider in the proposal
In the proposal, you should pay attention to the following:
- Trading conditions should correspond to commission availability, types, and levels of spread, leverage levels for instruments, sources to contract specifications, etc.
- Order execution conditions. The type of execution, requirements, strategies, period of trades in the market, etc. These details control the points, and the broker can cancel the order according to this. The broker can also temporarily block the account.
- Deposit and money withdrawal. Conditions and commissions (brokerage vs. payment systems), also conversion conditions if the currencies are different.
- Conditions of verification. It would be best to get validation before making a deposit. You must receive a confirmation from the Forex support team that everything is fine.
Besides, you can check all this in practice by opening a demo account and analyzing the trial trading conditions. You should be aware that a demo account is far from actual market conditions, and it is a simulator. Another problem is that testing will take more than a day. Therefore, you should be ready for this challenge and do not stop searching for accurate information on this topic. It would help if you found Forex brokers who have valid licenses from European regulators.
- Test your knowledge of Forex terms of trading. Take the quiz!