Best Forex Broker – For You
Would you recognize the best broker in the world in Forex Trading? I guess I won’t. But I would recognize a very good one and certainly a bad one. In this article, we will list different areas and features that a broker has to perform in. We will provide some tips on what is necessary and what to avoid. For further study, we will recommend resources and even an awesome Forex Trading broker.
Basic role of a broker
In the absolute basic role, the broker allows you to buy and sell shares, trades, foreign exchange and commodities. The list can be bigger. The broker will provide you the following:
In the absolute basic role, the broker allows you to buy and sell shares, trades, foreign exchange and commodities. The list can be bigger. The broker will provide you the following:
A) Account: This is similar to a bank account. You will make deposits into this account and whenever you make a sale/purchase, the amount will be credited or debited to this account.
- A good broker: Would not charge you for the account. They would give you interest on the deposits which are higher than the bank. They also would not have the permission to automatically trade with your money.
- A bad broker: Would charge you for opening and upkeep of the account. They will pay a little interest, if at all they pay. They may execute trades with your money. In case they go bankrupt, your money can be completely lost.
B) Trading Platform: This is normally an electronic system where you will punch in your orders for sale or purchase.
- A good broker: would provide you a platform that is advanced and interactive. He would also provide alternate methods of buying and selling, such as over the phone, without any extra charges. Their trading platform will have information resources built in and they will contain a variety of technical analysis tools.
- A bad broker: would provide you a platform with which you can only buy and sell. There will be little or no support of technical analysis tools. Every feature will need to be purchased separately. There will be no back up services for when you do not have an internet connection.
C) Leverage: Leverage is a credit limit that a broker provides, based on their assessment of your financial standing. Leveraging is very important for day traders as they can magnify their profits.
- A good broker: would provide high leverage. A lot of excellent brokers provide incentives by way of providing leverage without any collaterals or background checks. It is easy to achieve a 1:10 or 1:20 leveraging for day trades.
- A bad broker: would not provide any leverage.
Information is power
Trading requires you to have up-to-date information. Getting information 5 min later could mean a heavy loss. You should choose a broker that is very well connected. The broker should have in-depth knowledge in the area of your trading. They should be in a position to provide “breaking news” on priority.
Trading requires you to have up-to-date information. Getting information 5 min later could mean a heavy loss. You should choose a broker that is very well connected. The broker should have in-depth knowledge in the area of your trading. They should be in a position to provide “breaking news” on priority.
Strategies
Although this is a very personal matter, excellent brokers provide advanced trading strategies. It is quite normal that these strategies are based on revenue sharing basis.
Although this is a very personal matter, excellent brokers provide advanced trading strategies. It is quite normal that these strategies are based on revenue sharing basis.
Summary
A good broker can enhance your rewards. Look closely at the services being provided. Compare the brokers and the platforms that are being provided. If you are looking for an excellent broker, go to www.t1fx.com for recommendations.
A good broker can enhance your rewards. Look closely at the services being provided. Compare the brokers and the platforms that are being provided. If you are looking for an excellent broker, go to www.t1fx.com for recommendations.
