Because of the boom of the Forex market and ease to operate it, today there are a lot of brokers online, therefore, one of the biggest questions that arise when venture into this market is to Which broker to choose?
And the answer will only depend on the kind of Trader you are and your conditions to access the market.
Therefore, in this post I will publish 8 aspects to take into account when deciding in which broker the money will be deposited.
If all these tips are not working for you or there is a confusion between two or more brokers, then the best option to compare forex brokers is to check online from the tradersunion.
With the help of this website you can easily compare different brokers and select best one. Now let’s move to the original article.
At this point, we analyze the spreads … so questions arise like How high are the spreads? Are they variable or fixed? Do you charge commissions?
These questions are essential for all traders, since we are all subject to these costs and even more relevant, for those who operate in the very short term (day traders or scalpers) who take quick profits with few pips, since the spread can greatly affect the profits in this type of strategy.
Deposits and Withdrawals:
Depending on the capital you have to invest, it is essential to know the minimum amount to make a deposit, some brokers allow you to open accounts from 50 or 100 dollars while others require 10,000 dollars or more.
There are many platforms to operate in Forex, so it would be good to inquire about some aspects … Is the platform stable? Is its use friendly? What are the graphics like? Does it allow the use of indicators and tools for technical analysis? Does it allow the use of expert advisors? Can the order be entered from the chart? Can it be executed with a single click? Does it allow to install automata or robots?
It is important that when placing an order, it is actually executed at the best available price. For scalpers, a few pips of difference are essential to make a profit on each trade.
In addition, you must analyze very well what type of execution is the one that best suits your trading style, since some brokers have instant execution and market execution options, which depend on whether the broker is with a trading desk, STP or ECN + STP.
It is essential that the Trader can easily contact the broker, therefore, he should evaluate the languages in which they provide advice, the means to communicate with them, if they are available 24 hours a day.
Also, the technical support they provide should be evaluated.
Open a demo account:
After analyzing some aspects, demo accounts can be opened in two or more of the selected brokers in order to check and compare that they meet expectations and if they fit the needs of the Trader.
Highlighting that operating in demo will never be the same as operating in a real account.
Investigate the profile:
Additionally, and for greater security, it is recommended to investigate the profiles of the brokers, reputation, comments and rankings.