If you are a newbie currency trader and still wondering if the choice of a forex broker is such an important decision, the answer is: yes, it is. Therefore it is worth studying and analyzing so much information before entrusting your money to the chosen brokerage service. The broker is the trader’s partner in the trading activity. It is the link that can very easily make the difference between being a successful trader or staying with a bitter taste and giving up this activity.
To choose the right broker, clients can consider several aspects, namely:
The brokerage business must be working in compliance with the law and strict financial regulations. Check if your broker respects all the necessary rules and regulations before opening an account. Experienced traders recommend always checking the brokerage reviews, such as instance Bittradehouse review, in order to gather as much information related to the broker’s trading conditions, including regulatory compliance.
Trading strategies allowed
As a trader, you must choose a trading style, depending on the time you can devote to the financial market and trading. For example, if a trader can sit down and study the charts daily and chooses to scalp, he should ensure that the broker he has chosen allows scalping.
Courses, study resources, webinars, and seminars.
It is very important that your broker provides access to appropriate training, especially if you are a beginner. First, customers should have a solid theoretical background and study the specialized jargon, the most used indicators, the types of successful trading strategies, etc. In addition, having access to periodic webinars with market analysis or seminars where successful traders explain their trading methods and strategies can be useful in improving one’s trading performance.
Customer service in your language
If customers need assistance or have a problem, it’s best to respond in their native language, even if they are multilingual.
We advise all traders to list the criteria important to them in order of importance and select the brokers they are targeting. They must choose three and open a demo account with each. This way, they can test trading on the instruments that interest them using the desired trading style.
Traders’ needs will also change as their trading knowledge improves and their strategies become more sophisticated. Also, as your Forex trading business grows, you will certainly, at some point, need to diversify your trading assets. It’s particularly good for hedging purposes. Also, make sure to implement the five-three-one rule when trading. It means the optimal number of pairs to trade is five. Determine one time for Forex trading every day.
Finally, when opting for the brokerage service, make sure they offer various types of Forex trading accounts suited for your experience, knowledge, and the amount you want to invest initially.
Whichever broker you go for eventually, don’t jump into the game with the real investment. Instead, try out demo account mode. That way, you can test the platform’s features, train yourself in real market conditions and finally see if Forex trading is really a good business for you.
Vivek is a published author of Meidilight and a cofounder of Zestful Outreach Agency. He is passionate about helping webmaster to rank their keywords through good-quality website backlinks. In his spare time, he loves to swim and cycle. You can find him on Twitter and Linkedin.