Choosing an Online Stock Broker
To get started with trading via Forex, you need to find a reliable broker, who is an intermediary that gives you access to the exchange. One also helps you with trade transactions. Profitability, comfort, and security of trading often depend on how good the broker is. Therefore, let us discuss the main tips that one should know to select the best and most reliable broker.
From Where to Start?
To avoid mistakes when selecting a broker but make the right decision, you need to consider many aspects. You also need to be sure that the one you choose has a good reputation and is able to meet your trading goals.
You can find more than one rating of brokers on the Internet today, which describes in detail the advantages and disadvantages of a huge number of options. Read these reviews carefully and do not hesitate to consult with those who already have experience in this area.
The vast majority of brokers allow potential clients to test their services with the help of a trading demo account, thanks to which, traders can thoroughly understand the chosen trading platform, for example, MT4 forex. It would be wise to test several trading platforms before deciding which broker to use.
You need to approach the choice of a brokerage firm consciously: there are many intermediaries who want to receive a percentage of all the agreements you have concluded. Everyone wants to overtake competitors, so the choice will always be there.
While looking for a broker and making your choice, consider the following features:
- Reliability. It should be confirmed by a rating of the country. Reliability is one of the most important criteria.
- The number of active clients and turnover. Generally, we advise taking the one from the top 20 according to a reliable rating.
- Tariff. It is important to understand how much you will pay. For some brokers, the tariff is linked to the sum of transactions; otherwise, there is a subscription fee.
- Ease of working with money. You should know right away if you can make deposits and withdrawals of your money remotely.
- Support service. Check if the company has a toll-free number, how quickly it responds to your requests, and whether or not it is easy to call them.
- Possibility of an emergency closing of the transaction by phone. Imagine that you have lost the Internet, and you did not have time to submit a stop request to close the position.
- Tax. Find out in advance whether the broker provides data on income received and paid PIT to the tax or you have to fill out a return yourself.
- Crashes. Look for comments about the work of your chosen broker. Make sure if there are failures due to his fault and what was the response.
Also, pay attention to the following:
- A broker must work for at least one year.
- One must have permission and needed certificates.
- A broker provides good customer service, and there is a clear interface of the trading terminal (programs for transactions).
- When choosing a brokerage company, be sure to pay attention to customer support as well as the possibility of opening a minimum deposit.
We must also remember that the goal of a person offering to trade on the stock exchange is to force us to register, and the goal of any broker is to motivate a newcomer to start trading for real money as soon as possible.
Therefore, you cannot blindly trust the managers of the stock market. Do not top up the account with real money until there is a steady increase in profits for the demo version.
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