Last Guide To Forex Brokers You’ll Ever Need
Today I feel like going back to basics and talk about choosing a broker for trading. Before you say “Come on, we’ve heard it a million times already”, let me explain what brought me to this idea and why I think this is one of the most responsible and crucial decisions one makes when dives into trading.
When I talk to my fellow traders, especially to the novice ones, I see a surprising pattern – the vast majority of them said they chose their broker almost by a random sample. Usually, there are two ways they go: either choose the most popular company (literally one of those that pop up first when they google “brokers rating” or something of that kind), or rely on their friends’ advice.
Most of these traders confess that there are way too many brokers out there and they just don’t feel like doing a massive research. Plus, they actually don’t know the criteria and prefer to follow the majority. In this article I’m going to explain why they are making a FATAL mistake.
First off, let me clarify the terminology.
What is Forex broker?
It’s a financial organization with a specific type of license. Basically, it’s your “hands” on FX, since the market doesn’t allow each and every enthusiast to come over and trade freely. Thus, your broker allows you to make financial operations, receives your “buy” and “sell” signals, processes them and redirects them to the right place, keeps a record of your money flow, reports on your deals, etc. So, if your broker is your “hands” on Forex, why on Earth would someone be so careless to trust everything he wants to invest to a random middleman?!
This approach is quite understandable though – when I first came up with the idea of trading FX, I didn’t know much about the nuances as well, and made certain mistakes on my way. I changed several brokers too, and it took me a while to figure out my demand. Have no fear, I will show you how to make the smartest choice and try to illustrate my ideas of what you should consider when choosing a broker.
Being a trader with an extensive experience, I can say that you never know where your trading can bring you. In the beginning, I was looking for the lowest barriers to entry such as low initial deposit and free no-deposit bonuses. Soon after, I got a grasp of things, started doing better and thinking of the bigger stakes, and had to change the broker to meet my evolved requirements. Now I’m writing Forex reviews and help traders make the right decisions while getting my trading to a new level, and my expectations are changing respectively.
So, make sure your broker possesses a wide range of trading tools for different goals. If you check certain brokers out there, you’ll notice a trend for having multiple account types, a bunch of trading instruments, spreads from 0 pip, leverage up to 1:3000, and even partnership programs in case you want to set up some extra income in the future. In this case, you know you can flex your plans anytime you want, because such brokers are basically universal. However, that’s not enough to succeed, which brings us to the next question.
As I said, broker is your official representative on the marketplace you work at. If your broker is the “hands” and you are the “brain”, you need to set a decent interaction, right? You want to be sure you can reach it anytime you’re having a problem. For instance, I work with FBS broker, which operates in 120 countries and serves 4,5 millions of clients, and it requires a strong support department. You can IM them pretty much anytime of the day (their support team speaks 19 languages by the way) and get a clear advice or explanation. I love that they are informing me of everything that’s going on at their website and on the market, invite me to their seminars and announce their giveaways. Probably, I don’t need it all at the time, but I certainly love the approach.
It’s been a while since brokerage services have gone further than offering a plain set of basic trading tools. Now, they offer various promotions and bonuses to attract clients, so why not using them? For example, many of them hold regular promos, such as no-deposit bonuses, cashback, contests with valuable prizes, and so on and so forth. Don’t hesitate to use these options.
Custom educational materials is another great extra benefit. As we all know, your income on Forex (and pretty much everywhere) is directly proportional to your knowledge base. You succeed as you get a better vision of the process. Search for a broker that holds regular seminars, webinars, local events, and posts regular market analytics.
A lot of brokers offer their partnership programs. Being a partner means attracting people to trading and getting paid for it. You get a partner commission, some of them have a three-level commission payment system when you can earn not only from your direct clients, but also from the directly attracted IBs and sub-IBs. All in all, it can be a great passive income idea if you are good in networking.
Choosing a Forex broker is a serious decision that needs to be taken seriously. It is not just SOME company that you use to enter the market, it’s your companion for years to come.
Don’t trust those who wouldn’t answer your emails right away. Don’t trust those who wouldn’t try to expand their set of payment systems, account types, and trading options. Sooner or later you’ll find yourself struggling with certain questions, and you’ll be all alone in this situation. Your friends who brought you there won’t help you, and neither would Forex representatives. Your broker is your first responsible decision and your last resort, so choose it thoughtfully: make sure it’s licensed, safe, and exceeds your expectations.
As trivial as it may sound, a good start is half the battle won. Start smart with a thoughtful choice of the right broker!