Nowadays there are a lot of companies, providing access to online trading on Forex market. Quite often even experienced traders have difficulties choosing a broker that would meet the requirements of convenient and, what is more important, profitable trading on Forex market.
To choose a suitable broker, you should take into consideration several principles that would prevent you from being cheated or losing your money.
Thus, the criteria of choosing a broker are as follows:
Safety
The trader should pay attention to the reliability of the broker, namely, to how long it has been rendering financial services. It is also recommended to take into account the rating position of the broker and opinions about its activity posted on forums. You should also analyze its agreement, particularly the sections “Responsibilities” and “Rights and obligations”.
A range of services, rendered by the broker
A broker, providing a full scale of services on the market, is more competitive than other Forex companies.
The cost of services
The main types of commission charged by a broker:
- Account opening fee;
- Subscription fee
- Commissions for operations’ conduct
- Marginal usage fee
- Depositary account fee
- Non-trading transactions commission
- Analytics and news costs
However, at present most of the rendered services are free of charge; such as analytical reviews; some operations; providing and maintaining a trading system, opening and supporting an account.
Risk management
A licensed broker introduces the cumulated deals of its customer to the real market, whereof traders make profit. As a rule, having closed the deal successfully, a trader gets the yield which source is either the loss of other customers or brokers’ own funds.
The required amount of initial capital
One of the key distinctions between all brokers is the minimum sum deposited to a newly opened account. Some brokers enable you to start trading with USD 1 on your account. These are so-called cent accounts.
For large customers, willing to trade on VIP-terms, the minimum deposit equals to USD 50000-250000, depending on their market maker.
When choosing a broker, you should follow the criteria, which meet your own demands of working on Forex market.
