How to choose a broker?

One way or another, anyone who has encountered a real account on a market I've been thinking about the question, "How to choose a broker?". How not to make a mistake that will cost not only profits and time spent, but also sometimes the initial deposit. How to choose such a brokerwho will not be another obstacle to earn money in trading, but will be a friend, support and colleague, with whom it is pleasant to work?

Traditionally, everything that is labeled "Western" - products, services, software, entertainment projects - is considered better and of higher quality than its domestic counterparts. Not surprisingly, this stereotype, which is often justified, is reflected in the f. When looking for something reliable, solid and stable, many players reflexively turn their heads towards the Old World or America, evaluating their stock exchanges, their brokers, their trading software.

Naturally, you will have to pay more for the opportunity to work with Western market participants than in Russia. This is largely due to greater opportunities and a larger scale of operations. But the reputation of foreign brokers has suffered recently: unexpected bankruptcies of such currency market mastodons as Refco (USA) and Sovereign Financial Group (Switzerland) made all those who are hungry for "western" think twice. The companies that had a huge experience and whose reliability before the catastrophe did not cause any doubts collapsed. However, as we remember, few predicted the tragedy of the Titanic.

Therefore, all those who are eager to try their hand at trading in Russia should take a closer look at domestic brokers or dealing centers. Of course, with a careful analysis of the criteria that guarantee the reliability of work and safety of capital. Perhaps, having qualitatively assessed the current offer, the answer to the question: "How to choose a broker?", will not take you overseas.

Criteria for choosing a broker

So, in order to really correctly assess the work of both Russian and foreign brokers, you need to start from a few basic parameters. It is worth saying that there are quite a few of them, but it is better to spend a couple of days studying documents and websites than to regret making the wrong choice.

So, what we should evaluate: the broker's experience, the company's regulated status, qualified and responsive staff and support, the company's reputation, the system of liability insurance to clients, withdrawal conditions, quality risk management, trading conditions and restrictions, a service agreement without pitfalls and fast information flows in the convenient software provided.

Absolutely, track record and reputation of the brokerIn the case of Refco, the length of time it has been on the market speaks volumes. The collapse of the same Refco is an exception rather than a rule. More experienced brokers stay afloat for such a long period of time for a reason. It means that they wisely combined the principles of risk management, which allowed them to create their own name and comfortable working conditions, attracting potential clients and retaining the existing ones. Although, of course, new companies, in order to gain market share may offer better terms in the short term, as is often the case in market economies in general. In any case, a good work history, without the negative reviews plastered all over the Internet, is a plus in your broker selection.

Therefore, you should carefully study reviews on forums and in ratings about the companies you are interested in beforehand. Usually traders are happy to tell their unpleasant stories about working with brokers, if they made a mistake in their choice. Of course, you should not forget that negative opinions can be written by competitive organizations, so look for stories with more than 3 sentences. Similarly with positive reviews about the broker: if the preponderance of pluses to minuses is 150 to 5, and the names of users are not distinguished by ingenuity, then such reviews should also be excluded from consideration.

Of course you are, chosen broker must have a prompt and highly informed support serviceWe are a 24-hour service. The efficiency of your trading depends on a quick and concise answer to your question. Just as it is important that in case of any technical failures the company satisfies the claims of its clients.

And of course, you should pay attention to the conditions and quality of trade at the chosen broker. For traders using a pips (with small profits) strategy, the speed of information flows in the trading platform offered by the broker is very important. In a volatile market, the so-called "slippage" often occurs, when there is a difference between the declared and received price. Before depositing large sums

It never hurts to "run-in" a proposed one trading terminal on a demo account, if such an opportunity is available. You can get used to any software, of course, but it is important to get a feel for the convenience of the terminal, the clarity of its interface, and to study the conditions for independent programming.

And the last thing that traders often miss is. service contract. A well-written contract will always play in favor of the company, so to choose a broker correctly, you need to understand well at what points of your trade the company can "cut you off" - to refuse to pay profits, cancel transactions, etc. It is very good if the company offers you to sign the contract and sends you a copy, at least electronically. Worse, when the contract is in the form of an offer on the site, it will allow you to easily change the terms. Be sure to pay attention to the company with which you sign the contract, whether it is the same one that received a license from the regulatory organization. It is also worth looking at the legal address of the company, because in case of disputes, the court will be held in this country.

Of course, if your deposit is small and you are just starting your professional career as a trader, then almost any company about which there are mentions on the main forums and good reviews are available in adequate quantity will be suitable for you. But if you plan to trade large sums, then to the question "How to choose a broker?", must be handled responsibly.

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