Like there’s not enough to learn when it comes to forex trading, the trading platform you choose is the most important trade you’ll ever make. You’re providing that firm with all of the financial investment, with the hope that you’ll be free to trade with and collect your profits whenever the time arrives.
You could have excellent forex techniques, but all of your hard research and work will be for waste if your broker takes your funds. Follow this basic in-depth advice on picking a quality best forex platform to ensure that you locate the correct broker to suit your needs while avoiding fraud.
Consider Your Requirements
Before you start looking for brokers, make a list of your own requirements. Here we have mentioned a few points which you need to consider:
- Are you planning to do a lot of day trading or just a little?
- Do you want to trade very few moves or capture larger ones?
Consider using an ECN broker if you daily trade routinely and want to capture tiny price movements. You will be charged a fee on trades, but the spreads will be substantially tighter, which is important for minor trading movements.
If you don’t believe you’ll need to have an ECN broker, there’s still a large pool of brokers to choose from. You’ll need to get an ECN broker if you plan to do “scalp” trading.
What is your financial situation? You must trade micro-lots if you only have a modest amount of money. You can begin day trading small lots if you have a $5,000 or more balance. If you don’t really have $50,000, do not even open a regular lot account.
What Does the Broker Offer?
Check for the qualities in the OANDA brokers you’re actively examining nowadays to understand what you really want and have hopefully reduced down your list of possible brokers.
There is no such thing as a “dealing desk.” If you’re a day trader, you want to connect with the market directly rather than submitting your order to a trading desk, which then executes it. It takes too long and frequently results in “re-quotes.” When the price of your order has changed since you placed it, the broker will ask you if you want to proceed. Your trade chance is most likely gone due to the time delay.
Check to see if a well-established financial sector authorizes your broker. While having a forex broker licensed in Cyprus, for example, is better than having no regulation, you may still run into issues. As an example, look for brokers regulated by the US, UK, Canada, Japan, New Zealand, or Australia.
● Look out for “Losing Trader” reviews
Looking at published reviews of the broker and also discussion boards should be part of your investigation when selecting a broker.
However, be careful of these. You’re likely to reveal fake reviews, both favorable and negative unless such material comes from a reliable source, which most forums aren’t.
Most of the day, traders may lose money, and because they cannot accept this to themselves, many will blame others when this happens. Even if the writer blames the broker, when someone complains about lost money does not make the broker they used dishonestly.