There are many articles on how to choose a broker to invest in Forex. Many of these articles are written as if the target audience that will read the article „how to choose an online broker?“ traders who have been on the market for over 10 years.
Now we offer a short guide on how to choose an online broker to trade with Forex, which will be understandable even to people unfamiliar with the subject.
INTRODUCTION FOR BEGINNERS
how to choose an online broke
What is Forex?
Forex International Currency Market (FOREX from FOReign EXchange) is an interbank, over-the-counter exchange market.
What are the advantages of Forex?
Forex market is characterized by extremely high volatility (dynamics of exchange rates), record trading volumes (more than 6 trillion dollars per day), as well as very small amount of collateral for transactions. That is why anyone can become a participant in the FOREX market by trading through Forex brokers.
Who are Forex brokers?
Brokers provide an opportunity to make trade deals on financial markets. They are intermediaries between a trader and the market. The profit of a Forex broker is a commission, due to the difference (spread) between the price of buying and selling currencies.
How to choose which broker is reliable and which is not?
First, it is necessary to determine the key parameters of a company valuation. Many investment blogs, as well as brokers themselves, for advertising purposes can brave insignificant advantages, presenting them as a determining factor on which the profit of a trader as a whole depends. At the same time, the really important characteristics of companies remain undisclosed, as a rule, because there is nothing to boast of a broker here.
In the following, we will consider the most important parameters, which will be important for a beginner trader.
- The size of spreads and swaps: before is the difference between the buying and selling price of the same asset, while swap in the usual sense of Forex means the difference in interest rates on currencies from the traded currency pair.
- TRADE CONDITIONS: demo accounts, minimum deposits.
- types of payment systems
- Variety of trading instruments (assets)
- Software: the proposed trading platform, services of auto trade, as well as the presence of mobile application
- Availability of client support 24\7.
The combination of all these qualities: availability of quality customer support, low spreads and swaps, quality mobile application and a wide range of assets, up to the crypt currency can offer not every broker, but we can advise you.
barclay stone broker – a reliable, fast-growing, and most importantly, safe brokerage company!