The Forex market is a huge resource for long shillings, but a middleman is just indispensible to find a free access to markets and become prosperous. A broker company may lighten the work much indeed. However, the question is how to find the best forex broker? How to determine his or her qualification and reliability? What are the characteristics? Let’s speak about it today.
Everybody knows that Forex is the most marketable in the financial field nowadays. Everyday trade volume is 4 billion dollars USA (BIS 2007-2010). There are so many opportunities to increase income via trading, for instance:
- tremendous amount of participants
- constant changes in currency
- development of trading skills
Why is a broker needed?
Taking into consideration the technical development, not only a bank or insurance fund or stock company take part in trading but also a private individual.
People, who make bargains in the market and get the profit out of the margin, are called traders. Unlike professional market players, traders cannot participate in international currency commerce in Forex. There are 2 obvious reasons for that:
- no direct access to international markets
- limited finance
In this case a trader needs help of a middleman, a legal person who has the access and can provide other people with it.
What do a broker provide with?
First of all, the broker gives a registration form for trading account, which is easily found on the broker’s website. After registration you will be able to install the trading software.
Really good reliable brokers give also high gearing that increases the trading deposit largely. There are also additional stuff like economic calendar with important events (influencing quotations) and daily analytics (concerning basic currency pairs).
Everything seems to be quite easy. Nevertheless, there are so many different broker companies in the market and they all differ from each other to some extent. The success of productive trading depends even more on a broker’s reputation. So, that is the first and most important criteria that should be taken into consideration when you hire a broker.
How to define the reliability of a top Forex broker?
Top Forex brokers always work hard on their reputation and range of services. Such brokers provide with:
- Profitable trading conditions (your success is his success)
- Stable work of trading platforms (you are always online)
- The professional skills of company experts (they always consult you answering your questions and foreseeing possible problems and perspective of trading development)
- The legal address and constant telephone number (they are always available)
The broker should also support two kinds of orders:
- market execution
- install execution
Pay special attention to the speed of application processing. They should do it instantly and automatically, otherwise, how can they be the first and the best?
Another criterion is spreads. It is the main broker’s income that should be fixed and discussed beforehand. The top brokers always speak about spreads and never change them during the collaboration.
The legal status of the brokers’ company is vital for a trader. Be very attentive while reading about the legal address and registration data, because if a company is registered in offshore nobody guarantees the financial safety. So, such brokers are for sure not the best ones.
Binary options brokers: what’s the difference?
Binary options give much opportunities of a good income, because the price is fixed and the payout is known in advance.
Binary options brokers are able to auspicate favorably in the process of trading and in case of success the trader gets a profit. If the forecast is wrong, the trader loses just the cost of the option.
In conclusion, brokers exist to be helpful and guide in the world of Forex. The best binary options brokers are reliable and never hesitate to take responsibility in what they do for traders. That makes their reputation and brings them money.
