Sunday January 1, 2017 - 17:22:00 GMT
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Choosing the right broker for your trading careerr
Choosing the broker? Yes, you are right. It’s time for you to choose the right broker for you. One last thing you should ask yourself before you start searching for the right broker. “Do you have 3D in you?” You might be wondering what is 3D? This is the key ingredient for becoming a successful forex trader, which means “Devotion, Determination, and Dedication”. If you are missing any of the single D, then we can guarantee you that you won't be successful as a trader. Currency trading is for the elite people only. By elite, we are not referring to rich individuals. Elite means smart and energetic person with a sound knowledge of 3D formula
There are many forex brokers in the world and choosing the right one for you can be very intimidating. It’s imperative that you feel comfortable with your trading platform and broker service since you are going to take forex as a professional career. A number thing you should consider before choosing the broker.
Reliability and security
You are going to trade the forex market in order to secure a stable financial future. There are many brokers who claim to offer excellent services in terms of trading. But be sure that your broker is regulated by the responsible authorities. All your hard earned money might fall into the wrong hands if you don’t select a secure broker who has legal trading authority. Look for their regulation and make sure they are out there in the market for more than four years. You can look at the four-year track record of them and can easily sketch an overview of their overall performance and reliability. Last but not the least make sure that the broker you choose is a member of NFA, and is registered with CFTC in the US, and with other relevant authorities in other parts of the world.
Initial trading capital
This is one most prime indicator which separates the high-end broker with the average or low-quality brokers. The brokers which offer a minimum deposit from 1 -50 $ cannot be considered as a good broker. They are much more customer oriented broker and they believe in quantity rather than quality. On the contrary, the broker which have a minimum deposit of 500$ can be considered as a high-class broker for the beginners. Since their initial deposit is 500$ many rookie traders will not choose this broker. The broker knows this fact and they have made the initial deposit high deliberately to offer their high-quality service only to the professional traders. They are looking for qualified traders in their trading floor and willing to give the best possible cutting edge support.
Trading with less than 100 $ is more like trading in the demo account. If truly believe that you can be a professional trader than wait patiently and gather some decent money for your initial investment. Over this transition period, you can happily trade the demo account in your selected broker and get comfortable with their offered service.
This is very vital when choosing the broker .There are some brokers who offer excellent spread compared to other brokers. But offering excellent spread is not all. You should also consider that how well your trade is executed and whether it’s a fixed spread broker or variable spread broker. Typically top end brokers offer less the 2 spread on the EURUSD pair. So if your selected broker is charging more than two spread on the EURUSD pair then you can reconsider your choices.
The spread is very crucial for the scalper and news traders. Even though it might seem to be unimportant for the long term traders but they should also consider it seriously. Professional long-term traders also think about the spread due to rollover charge which is closely related to currency spread.
Deposits and Withdrawals
This is one of the key factors that the traders should consider before choosing their broker. A good broker should have different payment gateways for quick deposit and withdrawal. There are some brokers who hassle with the client during the withdrawal period which is not at all professional. Since you are pursuing to become a professional trader why not chose the right broker who respects professionalism.
It’s true that some withdrawal procedure might take 1-3 business days in top class broker but make sure that your broker doesn’t exceed the time period stated in their withdrawal section. Their website should contain clear and vivid information regarding deposit and withdrawal conditions.
This is very crucial for all the traders who want to trade the financial market. Make sure that you brokers offer the right trading platform which compatible with today's dynamic world. Trade execution should be extremely fast with no slippage. It’s true sometimes you will face slippage with the top class broker but due to the technological advancement almost every single broker who has ECN account are almost free from slippage. Orders are executed instantly in the market.
It's very obvious that you will have some technical difficulties while dealing with the financial instrument. Technical problems will prevail in the trading platform as long as the market exists. So make sure that the customer service representatives are well aware of handling such situations.
The customer’s service representatives should be well educative and help you in trading in every single possible way. So it's better to chat with the customer’s service representative and have a friendly conversation with them before you even open a demo account with them. Remember, a good broker will always have experienced and knowledgeable customer service representatives.
Choosing the right broker is extremely crucial for profitable forex trading. If you not comfortable with your trading environment then you will not be able to generate your best in the forex market. So make sure you spend a quality time in filtering your trading broker. Always remember that a good trading environment will enhance your trading performance in such a way that you can never imagine.
Article was written by Dwayne Buzzell
An economist, Forex trader and Forex writer. I have a keen eye for spotting international trading trends. My Forex experience as an individual trader has been thoroughly enjoyable and has brought significant returns for myself and my clients. More on my website.
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