HOW TO CHOOSE A BROKER. PREPARING FOR TRADE IN FOREX

Forex is a global market for trading foreign currencies. With a daily turnover of $ 5.1 trillion, it is the largest market in the world. It's no surprise that Forex attracts a lot of people all the time.

Before the commencement of trading, it is necessary to decide which broker to trust. The market operates a lot of companies that offer quite similar services. Thus, the choice is far from simple. In addition, since the advertising offers of these companies are very similar to each other, it is easy enough to overlook the small details. And it is these insignificant at first glance details that can significantly affect the safety of your investments.

We want to help you with this important decision, having resulted some basic characteristics of reliable brokers:

They are licensed and regulated by such reputable financial organizations as FCA, ASIC, SFBC, etc.

The legal aspect is the most important in the Forex market. Licensed forex brokers comply with all financial standards and security measures established by world-renowned and respected financial institutions. These are: the UK Financial Services Authority (FCA), the Australian Securities and Investments Commission (ASIC), the Federal Commission on the banking of Switzerland (SFBC), etc

They honestly treat customers, warning them about the risks associated with trading in Forex

Trading on FOREX assumes a high level of risk. You can increase your capital, but you also run the risk of losing your investment. Licensed brokers operating under regulations such as FCA place risk warnings on their web page and in all advertising messages for potential customers.

They provide security measures for the funds of traders

Adjustable brokers are required to provide traders with security measures such as segregation of their personal accounts, protection against default, round-the-clock support services, confidentiality of personal information.

Their liquidity is usually provided by regulated organizations

Regulated liquidity providers are required to comply with the rules set by regulators. Such organizations include Tier 1 banks, prime brokers, investment banks, securities firms, and so on.

Unfortunately, in addition to honest brokers, there are those that violate market regulations and unfairly treat customers. Typical advertising of such a company may contain such special offers:

The possibility of instant enrichment

Such unscrupulous companies practically guarantee that you will get rich in a month, a week or even a night, and regardless of market indicators! These promises are backed up by ostentatious images of the "luxury life" of traders trading with them. Such manipulative behavior is deeply unethical, since it does not convey the complex and volatile nature of FOREX market

Incredibly high bonuses up to 250%

Bonuses are offered for a simple account registration, which is already suspicious. In addition, if you carefully read the terms of the agreement, you can find a lot of interesting items that make it difficult to take out this money and profit earned with their help. In addition, often the company reserves the right after some time to stop the trading of bonus funds, assigning the profit to the client.

Leverage over 1: 500

They can offer you a leverage up to 1: 2000. It should be noted that trading with high leverage gives you a chance to increase your potential profit, but, on the other hand, increases the risks of losses proportionately. Brokers with a reliable license usually offer a leverage of up to 1: 500, but no more.

Deceptive references to awards and titles from incompetent journals and ratings

They often position themselves with such bright titles as "The Best Brokerage Company" according to the versions of various magazines, the names of which may sound quite respectable, however, in reality these magazines have neither regulatory powers nor expert opinion on the financial market.

Perhaps you have already encountered similar proposals. Be careful, because they are unrealistic!

Thoroughly examine each brokerage company before entrusting it with its own funds.

At the same time, please note that the following features are inherent in unscrupulous brokers:

They operate without a license from reputable financial regulators

To attract new customers, they rely heavily on the method of "cold calls"

They do not warn you about trading risks

They practice the methods of persistent sales

Customers of such companies have problems with withdrawal of funds

As we mentioned earlier, there are also reliable brokers in the Forex market. They strictly follow the standards and rules established by such recognized financial regulators as FCA, ASIC, SFBC, etc.

And we can recommend to you the 5 best brokers for today:

We hope that this information will help you make a reasonable decision. Our task is to provide you with knowledge and tools so that you can more effectively protect your investments.

You decide what to do next. Now that you are already aware of some of the risks of the Forex market, you can choose your brokerage company with a reliable license. At the same time, you also have the right to trust any other company that promises you rapid enrichment.

We wish you successful trading!