Searching for a good broker is very important because I already had multiple experiences with bad brokers out there. Dealing with them had cost me a lot of cash and my precious time. You have to know that no matter how good you are at trading the forex market but if you are using an unreliable broker, you will still end up as a loser.
Reliable and honest forex broker is a very important criteria of trading the currency market online. So here are the following that you need to look for in a forex broker:
1. Honesty
I already have dealt with three dishonest brokers (sorry I do not want to name them here) where in most cases, they were hunting down stop losses. The same reaction from other clients are being discussed on various forums. Their scheme can be easily observed by comparing their trading chart from other well recognized forex trading charts. If you do so, you will notice that they slightly vary.
Apart from hunting stop losses, they could be charging you with plenty of hidden costs that you are not aware about. Thus, its best to do your own research about such cases before considering of using that certain broker.
2. Reliability
At the time that a problem occurs particularly relating to some technical issues, your broker should be able to provide the help that you need. Their technical support should always be online at all times and they should be able to sort things out in short possible amount of time.
3. Security of Data and Information
Opening a forex account to any FX broker these days requires you to confirm your identity by providing them some of your confidential information. What happens if your information has been leaked out? Many people around the internet will be using your personal information claiming to be you. The worst part is when they use it to some illegal activities online.
Thus, it is important that the broker ensures the confidentiality of your data and information.
4. Easy to Use Software
The trading software of a certain broker might be different from the others. But most importantly, it has to be easy to use or you will be spending most of your time trying to learn every complicated functions for the whole month or even more.
MetaTrader is the most commonly used trading platform around. So my best suggestion is to familiarize yourself with the MetaTrader platform.
5. Fast and Accurate Order Execution
It is very important that once you have placed your order and hit the button, your broker should be fast and accurate enough to execute your order at your desired exact price. But in some cases, the problem can be due to your slow speed of internet connection.
6. Minimum Slippage
Minimum slippage applies on your stop-loss and it often occurs during news-releases. What happens is that your stop-loss will be triggered beyond the level of the price that you have setup. For those brokers that doesn't have minimum slippage, you could lost a lot of pips.
7. Financial Strength and Stability
What makes a good broker is its financial strength and stability. I have already seen plenty of new brokers coming out but just after a few months, they were gone. So to ensure of their longevity, you should make a background check about their stability and financial strength of that broker you are about to consider of using.
Reliable and honest forex broker is a very important criteria of trading the currency market online. So here are the following that you need to look for in a forex broker:
1. Honesty
I already have dealt with three dishonest brokers (sorry I do not want to name them here) where in most cases, they were hunting down stop losses. The same reaction from other clients are being discussed on various forums. Their scheme can be easily observed by comparing their trading chart from other well recognized forex trading charts. If you do so, you will notice that they slightly vary.
Apart from hunting stop losses, they could be charging you with plenty of hidden costs that you are not aware about. Thus, its best to do your own research about such cases before considering of using that certain broker.
2. Reliability
At the time that a problem occurs particularly relating to some technical issues, your broker should be able to provide the help that you need. Their technical support should always be online at all times and they should be able to sort things out in short possible amount of time.
3. Security of Data and Information
Opening a forex account to any FX broker these days requires you to confirm your identity by providing them some of your confidential information. What happens if your information has been leaked out? Many people around the internet will be using your personal information claiming to be you. The worst part is when they use it to some illegal activities online.
Thus, it is important that the broker ensures the confidentiality of your data and information.
4. Easy to Use Software
The trading software of a certain broker might be different from the others. But most importantly, it has to be easy to use or you will be spending most of your time trying to learn every complicated functions for the whole month or even more.
MetaTrader is the most commonly used trading platform around. So my best suggestion is to familiarize yourself with the MetaTrader platform.
5. Fast and Accurate Order Execution
It is very important that once you have placed your order and hit the button, your broker should be fast and accurate enough to execute your order at your desired exact price. But in some cases, the problem can be due to your slow speed of internet connection.
6. Minimum Slippage
Minimum slippage applies on your stop-loss and it often occurs during news-releases. What happens is that your stop-loss will be triggered beyond the level of the price that you have setup. For those brokers that doesn't have minimum slippage, you could lost a lot of pips.
7. Financial Strength and Stability
What makes a good broker is its financial strength and stability. I have already seen plenty of new brokers coming out but just after a few months, they were gone. So to ensure of their longevity, you should make a background check about their stability and financial strength of that broker you are about to consider of using.
