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How to Choose a Forex Broker

To start trading in the international exchange market Forex, you need a professional intermediary – a broker. However, its choice can be hard. Good advertising is not a guarantee of a company’s honesty and reliability. What should we pay prior attention to when choosing an intermediary? Let’s discuss how to choose a broker and not lose your savings.

Availability of license

The pursuit of a legal broker activity is impossible without a license. As a rule, information on the document is publicly available on the company’s site. The license is issued by official regulators. It may be Central Bank, for example. Also, there are private regulators, which specialize in the issue of licenses too.

To obtain a license, a broker has to meet a number of requirements. Above all, it should have its own capital. Moreover, having obtained the license, a broker is regularly inspected by regulatory bodies. If a company fails to comply with at least one criterion, the permit may be withdrawn, and the broker’s activity – be suspended.

The license is issued to legal entities only – banks or other financial organizations. An individual cannot take out this document. That’s why, if you come across an ad on the internet advertising the services of a private licensed broker, you may rest assured that it’s a fraud.


The company’s lifetime is yet another reliability criterion. The first broker agencies emerged on the market in 1997-1998. They are considered to be the most proven and reliable. Nonetheless, there are younger brokers one should pay attention to. If you doubt a candidate, consider its ‘age’. The older the broker, the better. The perfect option is when a company has been operating in the market for 5-10 years.

Broker’s security level

Before you open your trading account, make sure the company is safe. When registering, a client always passes verification, confirms their identity. If a broker does not require the confirmation of your phone number, the copies of ID documents, it makes sense to give its reliability some thought. Trusting the wrong company may cost you your funds.
Also, to check the company’s reliability you can use information placed elsewhere except on the company’s site. If a broker hides some data, you’d better withdraw from cooperation with it.

The following information is necessarily subject to disclosure:

data on license;
financial statements;
data on judicial disputes and proceedings;
a list of credit organizations where the client's funds are booked, etc.

The analysis of all data can help to form a clear picture of the company’s activity.

Trading platforms and app availability
Before you give preference to a specific organization and open your real trading account, find out what platforms you’ll be able to trade on. Learn whether a broker has application browsers, which do not require downloading, as well as apps for smartphones or laptops. The success of your cooperation depends on that. You can get all necessary information on the broker’s site.
Make sure that a company provides a demo account. That’s a mandatory condition for a beginner. This way you’ll be able to learn the ropes of Forex trading keeping real money. If you have real trading experience, you may pay attention to more conservative organizations, which do not provide demo accounts.

Trading terms

After the organization’s reliability assessment, you need to assess the conditions it offers. First of all, you need to consider your own trading preferences and be focused on yourself. Maybe, some of them will play a crucial part for you. So, what trading conditions you need to pay careful attention to?

Terms of money replenishment and withdrawal

Terms of money replenishment and withdrawal to a trading account may be different in different brokers. All related information should be presented on the company’s official site. Consider what banks and payment systems the company cooperates with. Yet another important criterion is the size of the commission for making transactions. The best thing is when a broker affords ground for currency conversion.
Take note of the number of payment systems. The convenience of trading account replenishment, as well as profit withdrawal, depends on it. There are the next payment systems:

money transfers;
transfers from one banking account to another;
transfers using a bank card number;
using electronic systems.

Major brokers provide the opportunity of making transactions with all the above-listed methods.

Minimum deposit

That’s an important criterion for a beginner. Sometimes the deposit size may be crucial in the selection of a broker. Some major companies set a high barrier of entry, which many people cannot afford. Make sure the set threshold fits you and you can risk this money without causing damage to your budget. Moreover, it’s worth specifying what currency is used to open a trading account.

Fees, spreads, leverages

Large organizations often provide several types of trading accounts, which differ in fees, currencies, and other parameters. Take a close look at the conditions of each of them. Choose the variant, which meets your requirements best. The great advantage is the opportunity of choosing the size of credit leveraging on your own, and fees and spreads should not be too high. Focus on average market indicators.

Financial instruments and trading platforms
Check out which trading instruments the chosen company provides. The more options are offered, the better. This way you’ll always have the opportunity to choose. Also, a good trader provides its clients with several trading platforms. You can choose the option, which fits you best.  Make sure mobile applications operate properly.

Customer support

Not only a beginner but an experienced trader too may need a specialist’s help. It is highly important that a company provides this kind of help. The best thing is when support operates 24/7. The promptness of the response to a client request is also important. Large organizations offer the possibility of phone communication with an advisor. Smaller ones communicate via email or special chat.

Do a broker analysis

So as not to make a wrong choice and look back on the decision made, it’s better to compare several organizations at the same time. To this end, you can use special apps, lists, ratings or carry out an analysis on your own. This way you can rule out doubtful companies leaving the ones, which fully meet your requirements.

TOP Forex broker selection criteria

There are parameters one needs to take notice of above all. They are:

Length of experience +5 years and excellent reputation.
Availability of license and compliance with the requirements of the country’s regulator.
Large client base.
Opportunity to get the support at any convenient time.
High ratings, availability of real positive feedback.
Using up-to-date software.
Profitable and open cooperation conditions.
Ensuring trader’s personal data safety.

A broker’s reputation is being built for years, that’s why reliable organizations set a high value on it. Make sure to give attention to the firm’s reputation, try to study the feedback of real clients, do not hesitate to ask questions. The safety of your funds will depend on how responsibly you approach the choice of a broker.

Contacts is not a financial services provider, but only a robot on the platform of the regulated broker Just2Trade Online Ltd is authorised and regulated by the Cyprus Securities and Exchange Commission in accordance with license No.281/15 issued on 25/09/2015. FXTM (ForexTime Limited) is licensed by the Financial Sector Conduct Authority (FSCA) (former Financial Services Board FSB) of South Africa with Financial Services Provider (FSP) license number 46614. RoboForex Ltd is an international broker regulated by the FSC, license No. 000138/333, reg. number 128.572. Address: 2118 Guava Street, Belama Phase 1, Belize City, Belize. All information published on this website is for educational purposes only and should not be regarded in any way as investment recommendation or advice, not even implied.

Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. The displayed results are a combination of real live results and hypothetical trading results.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.

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