Numerous companies offer access to the biggest financial market. Some of these businesses are not what they seem. Forex traders should be cautious to avoid scams. Follow our guide to find a company worth trusting.
The best brands provide flexible market access and a treasure trove of free content. For example, the Olymp Trade broker offers free demo trading, versatile support and a broad spectrum of instruments. The following five aspects define the leaders in the industry.
1. Reputation and Feedback
Trusted brokers are praised by experts and traders. Lack of information is a red flag. On the other hand, feedback is bought and sold, so the source also matters. Was the review left by someone who specializes in forex? Feedback from recently registered users may also be dubious.
2. Licensing Details
Trading through an unlicensed broker is out of the question. Legit businesses are authorized by credible organizations, such as the CySEC, the FCA, the FSCA, etc. This information is found in the footer of the official websites. One broker may be registered in several jurisdictions.
Regulated companies comply with stringent requirements. For example, they guarantee negative balance protection. This means that even with the worst strategy, you will never lose more than your balance. Poor decisions in financial trading may result in spectacular losses, so this precaution is invaluable.
3. Choice of Markets
Different brokers have a different market reach. Some are focused on currencies and metals. Others add stocks, CFDs, and other assets to the mix. From a single platform, you may be able to work in a wide range of markets: Forex, commodities, cryptocurrencies, stocks, etc.
Make sure the company offers the right assortment for your needs. Even if you are only starting out, you will need to diversify sooner or later. Switching between brokers is a pain in the neck, so opt for a universal solution.
4. Trading Software
Successful companies can afford to invest in software development. As a result, you can find proprietary apps like Olymp Trade. Traders expect flexible access across platforms and devices. Aside from the software, you can find web-based platforms that work directly in browsers.
The best systems are suitable for technical and fundamental traders. They are packed with useful tools for analysis, trading, and risk management. Credible providers offer free educational resources to help their clients master the systems.
5. Education and Support
The Forex market is open 24/5, so you need assistance around the clock. Make sure the company delivers on its promises and handles inquiries quickly. You should have access to a plethora of free resources, from articles to videos, including descriptions of recommended strategies.
The Bottom Line
The broker is your middleman in financial trading. This company does not only register accounts, granting access to the market. It is also responsible for the processing of transactions. Treat it like your banker. Checking the provider’s background is a must.
Read More: How To Find A Forex Broker You Can Trust