Over the past few years, market development and the growth of supply provided an opportunity for the emergence of many companies with Forex services. However, few people know, what criteria should carry out selection of the best of them, if you do not have enough experience. In one of the last materials we talked about how to choose the best forex broker in terms of image and reputation of reliability with an experienced client. Now let’s look from the novice’s position.
Many times you have heard, that a company of this type are used to use the ignorance and little experience of client, that simply pumped money from the man to the fullest. So it do many unscrupulous companies, but there are those, who have never not go in this way. To the fore, the main criterion, that immediately implies, is experience. As practice shows, the priority selection becomes to the company, which has at least 5 years on the market trading. This is the main catch. Many companies have no more than 2-3 years, staying mostly due to a number of reasons, which will be discussed further.
Geographical scope of the customer
The second focus for future trader should always pay on the covering territory by broker. Also it is necessary to add the extremely important fact: if the company has only monolingual panel (ie, negotiate and services provided in only one language), the audience is no more than 6000 users and it has a lot of the question promptly input of money – it should alert you. The most common way for fraudsters can hide under the guise of brokerage companies.
Successful companies in the field of forex services, which are distinguished by a multinational audience, opened trade positions around the world and the transparent system of profit and bonuses. If you doubt about the single point – think twice, because one inaccuracy can cost you money.
The most painful part of any data searching about the future of the forex broker or dealing center is the reviews and comments about it on many websites. After all, most of all Internet audience is divided into four parts.
The first – the employees of companies, that write positive recommendations regarding their company. The second – customers who often accuse the company of unprofessional due to the loss of money through his own fault (less by the fault of the company’s employees). The third one are former employees of a broker, who were laid off due to various reasons – the standards discrepancy, personal animosity, fraud with the money of clients and so on. The fourth group is rivals, who are trying to take away the attention of customers, often leaving only the negative and offensive comments.
According to the observations of experienced traders, the best tip will always be the one, which will be given complete formula forex broker works (leverage conditions spread, maturity of the insurance in the event of the failure of the auction), as well as an example of painted successful/unsuccessful transaction and a clear plan, who might be to blame for its failure. Also, it is worth remembering, that the best opinion is worth reading on reputable sites, because most often it is the place, where the staff is attentive to public attention. No less important thing in the review is the fact of having links to information leakage or discharge. You should take attention, because of most “successful” companies catch the bait inattentive clients. Therefore, we advise carefully sort through written on forms on the Internet.
The credibility and brand awareness
The current level of marketing allows you to consider the service for such an extent level, that nothing remains only to buy/accept/agree with this view. However, it is very clear, that the credibility of the forex broker is not based on the built its advertising strategy, as well as its brand, the past many years of successful work, and the positive and negative income, gives the ability to prove their work.
Among independent sources of definitions may be voting authoritative publications, the presence of permanent B2C technology (webinars, seminars, lectures, exhibitions, open house etc.).Brand awareness is also stands in the right advertising strategy, which connected all possible ways – the media, the Internet-providing, a good job with a reputation and customer revenues. Future customers need to know a very important detail about the company one more thing – does have the forex broker for you all the amenities: from the basic course to all-time-by contact.
One of the pillars of a successful choice is the knowledge of “kitchen” of the company. This analogy will be apparent to all. We decided to tell you about five of these postulates, which will help you better understand whether it’s your Forex-broker or not.
Rule one – the availability of training or demo account
A demo account allows you to check the trading platform and the related working environment. Free Demo Account is a great way to learn & to practice the trade in the currency market, because you’ll be able to visit the site of the trader, which opens a real account. Demo account, of course, credited fictitious money.
Rule the second – the presence of the commission payments and spread
The claim, that brokers offer commission-free trading, is only partially true, since they are paid for services partly through the spread. Their “commission”, therefore, is proportional to the size of your position. They have other mechanisms for earnings, but the spread is basic. Spread is the difference between the quotation of “sale” and the quote “buy” (or the difference between the sale price, “the bid” and shopping “ask”). The spread in the general case has the fixed value, becoming variable when it becomes a strong market volatility. If you company offers a variable spread – we advise not to work with such company.
Rule Three – Leverage
Some brokers offer a leverage of 1: 100 and a leverage of 1: 200. Leverage’s size can vary from one Forex-broker to another. At that time, as the higher the leverage does not guarantee you a profit, however, a higher retail margin will give you the best chance to win big profit. The high degree of leverage is important, especially when you have a small trading capital.
Rule Four – the presence of soft margin limits
When you are trading with credit money, your broker can tell how much risk you can take on. Thus, the broker can buy or sell on your own, it can be a bad thing for you. The best way is to avoid such companies to carefully read the terms of trade, and to take the discussion on the forums traders.
Rule the fifth – the introduction/removal of the means of payment
Brokers offer a wide range of techniques funds your trading account as well as withdrawals from the account. Conveniently, the Forex-Broker offers In/ Out resources by a bank payment, payment (credit) cards of VISA, MasterCard, etc., as well as payment systems Moneybookers, WebMoney, PayPal. When you select and evaluate the terms of crediting mechanism and withdrawals from the account, you must also be aware, that some brokers are allowed to withdraw funds from the trading account only by this method, with which opened the trading account. This point is related to the customer’s security policy. Nevertheless of that, many companies do not restrict the customers in choosing the possible withdrawal methods, but it is better to be informed on the subject.
Summing up, we can say the following. The ideal company in the market Forex-market simply does not exist, because the trade is a risky business. However, due to the fact, that you will carefully monitor the options and conditions for the beginning of work in this area, the possibility of serious financial losses will be kept to a minimum. Also, Trade-24 reminds to you: Beware of fraudsters and profiteers! Try to work only with reliable and responsible brokers on the Forex market.