In the ever-changing world of trading, it all comes down to this: how do you choose the best Forex broker for your needs? There is no simple answer, but with a few tips you’ll find yourself on the right path to success: the few lines below will guide you through the basic steps of selecting your future partner in success, so focus on the features that are right for your unique trading profile.
Steps to find the best Forex broker
First off, how many types of brokers are there? We have 2 main categories of brokerage service providers, and these are:
· dealing desk;
· no dealing desk brokers.
How are they different? Well, the dealing desk type is also known as a “market maker”. With them, you capitalize on spreads and get liquidity back from your broker directly. The dealing desk type creates a specific market for its clients, providing a buy/sell rate. This means they compile both buy/sell orders for their clients, without having access to real interbank market rates.
The high-level competition among brokers is so big that the rates they provide are almost always extremely close, if not the same as the actual interbank rates, so not knowing the rates beforehand does not affect their performance at all.
The no dealing desk brokers, on the other hand, do not filter clients’ orders via a dealing desk. They’re in charge of forming a structure to connect two areas, and therefore they can charge a moderate commission for trading, or simply increase the spread to draw advantage.
Regulated VS unregulated brokers
Now that you are familiar with the 2 main broker categories, let’s move on to how you can identify a reliable broker. First off, you need to pick a fully regulated service provider. It’s not an option, it’s your own personal insurance. Unregulated brokers tend to disappear overnight and pending withdrawals never get processed, so, just to be on the safe side, it’s best that you stick to those who comply with market regulations.
Another factor that can influence your broker-picking decision involves full-service vs discount brokerage. Full service brokers offer an extensive array of services, but these services come at a bigger price. The up-side is that you get much more one-on-one advice and customized suggestions, which can be turned into successful trades more rapidly and easily. Discount brokers, on the other hand, usually lack proper customer care. Younger investors, however, prefer this type of service, because they are more financially accessible.
Where to find the best Forex broker
We find that a great place to look for that ideal broker is the following: regulatedbrokers.com. The site offers in-depth information about main market players, extensive reviews to help you pick the best match and detailed graphs that will give you a pretty good idea of what’s hot to trade now.
Online foreign exchange trading can seem like a daunting task, but this site makes it really easy. All in all, you stay updated with the latest industry news and get to check out the best service providers. For those of you who are staring out in the biz, a homepage full of useful information about Forex and exactly what trading entails will come in handy and will constitute the basis of your future successful trading education.
The best Forex trading account does not exist; there are multiple platforms where you can pursue Forex trading, but each is suited for a certain type of trading profile. To find your best match, you need to go over extensive Forex broker reviews, look for legit Forex trading companies and not just settle for the highest rated Forex brokers off the start.
A high rating is a small part of what constitutes an ideal service provider. International Forex brokers will go all out to “ease” your choice, but fact is it’s all up to you: so, do your research, eventually try out a few platforms and see which is the best for you!