Are you considering the possibility of multiplying your funds by operating in Forex? Without a doubt you will need a reliable broker, the problem is that in the face of a market that is on the rise and gaining in popularity every day, hundreds of new brokers have appeared, complicating your task of finding the right one in the face of so many offers.
How to recognize the ideal broker? what aspects to take care of before making the decision? which are the brokers that lead the current market? this and many other questions, will be unveiled below, so the invitation is to stay until the end and also know those tips or suggestions to decide for the right one.
What is the function of a Forex broker?
Also called Broker, a Forex broker is nothing more than a financial institution or brokerage firm in charge of coordinating the operations of buying and selling in this foreign exchange market; this implies that it is the one in which you open an account and deposit the funds to start investing, since it acts as an intermediary in exchange for a commission.
How much does this commission amount to? It depends, since there is no fixed task, it is delimited according to the difference between the purchase and sale prices, or what is equal, the amounts that come into play in each transaction.
How do you choose the best Forex broker?
This is undoubtedly the million dollar question, unfortunately, there is no exact formula, making it imperative to analyze various characteristics before making a decision; however, as the goal is to give a little light on the matter, some tips and tricks are brought to consider if you want to maximize the chances of being right.
Trust is everything!
Do you want the best Forex broker? Point out your options to those who work with a reputable company, remember that it is money you are going to invest, which you probably had a hard time raising.
Even though the task is tedious, you will need to do a lot of research, as well as get opinions from other traders, limiting your list to those who boast not only experience, but excellent reputation; likewise, pay attention to your client portfolio, only the good ones handle thousands of accounts.
Regulation and Security:
In order for a Forex broker to be considered reliable, he must comply with each of the regulations and be secure; in particular in Spain, the invitation is to check the proposals of those brokers regulated by the Cyprus Securities and Exchange Commission (CySEC), or in its absence the International Financial Commission (IFC).
Beware of unregulated brokers, they lurk around waiting for the opportunity to find naive traders who fall for the temptation of their attractive security deposit, hence be wary of those who are extremely low.
The best Forex broker? the one that fits your needs
Your decision must be based on what is important to you, although the experience and knowledge of others will be valuable, include in the determining factors your own criteria. What does this mean?
Decide, then decide…
Even though the service is the same, there are many discrepancies between the different brokers, especially in terms of commissions, margins and trading platform. Take time to define the most important criteria, then complete them with what each one offers you and compare, then you will know which one meets the most criteria.
Offers and trading conditions
Do you want a viable criteria to evaluate the level of reliability of a Forex broker? Check the return of the investment you propose as well as the trading rates, the first one has to be high, while the second ones have to be as low as possible. This is where the demo accounts that some platforms propose for free become allies.
Enter the portals of those brokers who arouse your interest, and know their trading conditions in this demo accounts, they will serve as a guide before investing real money, because you will discover what are the possible benefits.
Beware of misleading offers!
As in any other aspect of life, if it seems too good to be true, it is because it may not be! Beware of falling into lucrative bonds, most of them are just marketing tricks of unscrupulous companies that only think about their own interests.
You only have to look into the terms and conditions that accompany them to realize that what is hidden behind them, turns out to be an evident and great scam.