What should you consider when choosing a CFD / Forex broker?

Choosing the right broker is not easy! Especially when there are many platforms for such services. However, because the number of retail accounts is higher than ever, it is more important than ever to trade before you pay your account.

  • Most traders lose money and only 12% are profitable.
  • Social media has made it possible for many people to become rich quick and confident.
  • Your broker can provide marketing, pricing, performance and technology for your business. This is not an equal playing field and you need to use a reputable broker who invests in you as a long-term customer.

How do you choose a broker?

  • Platform simplicity, reputation and secure deposit and withdrawals are key things to look for before making sure the broker offers the markets you want to trade.
  • Price is secondary, poor performance and slippage are more detrimental to success and if you can’t spend money, the headlines will be of little use.

How do you know if a broker is safe and reputable?

1) Where do you control?

Brokers often boast about their control; However, not all controllers are the same!

You should also want to see if the broker is regulated in the country and where you live. When things go wrong, your closeness to the supervisor makes the answer much easier. Is the broker controlled by one of the strictest regulators such as FCA, CFTC, FSA or MAS? These supervisors are very diligent in protecting the police.

2) In what body are you trading?

You can trade using an FCA broker, but this does not necessarily mean that you will be protected by the FCA administration. Brokers often use group members, some of whom may be out of control or under control. Clients trading under these bodies are not legally entitled to the same level of protection.

3) Is the broker listed and has a clear ownership structure?

Brokers listed on major stock exchanges are subject to further scrutiny and are required by law to be more transparent. Their business model, how they make money, and their strategy are publicly reported.

4) How reliable is the deposit and withdrawal method?

When choosing a broker, it is wise to set aside some money, make some trades, and spend money. Then you can think of any issues, how long the process took, and whether you would like to make a big deposit.

5) How does the broker react when things go awry?

Brokers are always quick to respond to customer account opening requests, especially since the cost of customer acquisition is so high. But do you help a financially supported customer when he or she has a problem? Call the broker when using the deposit and withdrawal method, use their chat functionality and see how helpful they are.

6) How did they fare in the last market crisis?

Finally, you need to consider how the broker was in the previous crisis and whether they were under any control. This should be clear from the basic online search. You need to consider their behavior in the process 2015 Swiss Franc Crisis, 2020 Brent crude oil crises and the recent study of 2021 U.S. cap cap equity volatility.

Summary

Choosing a broker is not as easy as it may seem at first, it is important to spend time researching the offer and making sure that the broker you choose is investing in your future as a loyal long-term client.

About OvertEd Markets

OvertEd Markets provides retail CFD / forex brokers with competitive thinking, industry insights and market share data across & gt; 40 countries through a cloud-based platform. The company holds the largest database on the activities and offerings of global retail CFD / Forex brokers and uses proprietary algorithms to help brokers improve customer acquisition and increase transaction costs.

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