Choosing a Forex broker or dealing center
Selection Forex broker - is a very important and responsible moment. Today there are many companies that provide access to work on the The international currency market Forex.
All companies providing services in the foreign exchange market can be divided into brokers and investment banks. Below we will consider all the main factors affecting the correct broker selection:
1. Amount of start-up capital;
2. fame and reputation broker;
3. Working hours during the work week;
4. Commissions;
5. Spread level;
6. Various additional restrictions on trading;
7. Reliable communication with the broker and technical support;
8. Additional services and products for clients;
9. Ease of working with the software.
Amount of the trader's starting capital
The main factor in choosing a broker or dealing center is the size of your starting capital. Despite the fact that today for the owner of any amount of money there is an offer on the foreign exchange market. Most brokers are size-oriented Deposits equal to 2000$. However, this does not mean that for such money you will be offered the best conditions and one hundred percent guarantees of timely payments and safety of earnings. It all depends on who you have chosen as your representative on the international level Forex currency market.
If broker offers you to start trading with 1000$ or less, this indicates that your positions will not be taken to the interbank market directly, but only by summarizing the positions of several participants.
If you have decided to start working on the market with large investments, then you will need a solid western bank, where the amount of starting capital should be at least 50 000 - 100 000$.
Many people believe that it is worth starting to work on the market with such deposits. However, it is possible to do with much smaller sums. The main rule that a trader should adhere to is that the amount invested in the market should be equal to the amount, the loss of which will not be disastrous for you.
Reputation of broker and dealing center
Before handing over money to a company, it is necessary to study in detail all the information about the broker and brokerage house. It is worth paying attention to the time the company has been on the market. Of course, it is preferable to choose one of these brokerHowever, sometimes it is the new companies that offer the most favorable and comfortable conditions. work on Forex market. Ask your friends who are already trading on the market or visit forums dedicated to currency trading. As a rule, fraud does not go unnoticed among traders. You should pay your attention to those brokersabout whom you have gathered as much positive information as possible.
Working time during the week
Your preference should be given to the company that opens at night on Monday and finishes work closer to midnight on Friday. So, for example, leaving a profitable position for the weekend in order to earn more, put a protective order in such a way that even if the outcome is negative, you can earn a little over the weekend. However, it may happen that on Monday night there will be an unexpected event that will contribute to a sharp jump in the exchange rate against your position. Brokercoming in at nine in the morning will execute a protective order at the price he sees on his monitor. Therefore, because of the interruption in business. broker it would be quite risky for you to leave a position open over the weekend.
Broker's or DC's commission fees
By providing access services to international forex market, broker makes money on the spread. Spread - the difference between the sale price and the purchase price. Most Forex brokers they make money because of this price difference. In case you come across broker or a bank that has any additional fees, you can safely look for another one. brokerHowever, it is worth knowing that all brokers have a fee for transferring a position after one day. However, it is worth knowing that all brokers have a commission for transferring a position after 24 hours. Swap.
Spread level at broker or dealing center
Spread - The basis of a broker's earnings. There are two types of brokers:
- with a fixed spread;
- with a floating spread.
Fixed spread is a constant difference between the buying and selling rate regardless of what the market situation is. However, there are many brokersthat offer floating spread. However, due to frequent fluctuations in the price of Forex marketat floating spread create great inconvenience for the trader, as the spread can reach about 50 pips. But floating spread has its advantages. For example, in a calm market floating spread may decrease to 1-2 x points, while fixed remains at the same level.
Additional restrictions on trading
Today you can find brokers and DCsThere are a number of trading organizations that practice additional restrictions on trading. As a rule, it is a provision on the mandatory number of transactions for a certain period of time. Very carefully consider all the clauses of the contract, determine which terms of the contract are the most acceptable to you, and which are not.
Reliable communication with broker and technical support
Broker It is obligatory to maintain round-the-clock communication, and it is desirable that it should be not only by means of an electronic terminal, but also by ordinary telephone communication. As a rule, technical support works from 9 to 18 hours.
Additional services and products for customers
Most often these are various analysis programs, getting free quotes and news. This makes a trader's work much easier, especially in the very first months of working on the trading platform Forex market.
Ease of working with the software
Naturally, you can get used to any software, but before entering into a contract with a broker, it is recommended to install the demo version trading terminal and test it. The more intuitive the program interface is, the easier it will be to work on it. However, this is not the most important point when choosing a Forex broker.
Every trader strives to find the perfect broker or dealing centerbut unfortunately that's not always possible. You have to put up with some or other disadvantages. When choosing your broker, decide on the most fundamental points for you. Carefully study all the clauses of the contract and good luck in trading on the The international currency market Forex.