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How to choose a Forex Broker – 4 steps to follow

by c-incognito
Forex Broker

In this guide, we will analyze how to choose a Forex Broker, which is a fundamental aspect to invest successfully.

Unfortunately, choosing a low-quality broker, in many cases, can also mean losing money: it could be unsuitable for applying the right online trading strategies, or it could even be a scam and implement unfair policies towards the customer.

Many of the traders who complain of losing money when investing in the financial markets (Forex or otherwise) owe their losses precisely to an incorrect choice of the broker.Hence the need for reading reviews like Trade Horizon Review and see what the particular brokerage has to offer. 

With this article, we are going to outline the 4 most important characteristics to consider when choosing a Forex broker.

Regulations

The broker must comply with the Financial authorities and operate in an honest manner. In fact, to be whitelisted, it needs to fulfill certain requirements. Check if your broker is regulated on the official website of financial authority amenable to your country. 

Demo account

The demo account is a feature that many brokers offer and that allows you to evaluate operations on the platform without necessarily having to use real money.

The demo mode can also be seen as a way to practice forex trading, testing strategies and following the currency pairs of our interest. We can certainly say that experimenting with a demo account allows us to avoid one of the most dangerous risks in forex, which is to use a trader that is not reliable and safe.

On the demo account, the market conditions are similar in all respects to the real account:

  • Real-time quotes
  • Assets available
  • Technical indicators

We are talking about an obligatory step, and everyone should start with a Demo before investing real money. All the best platforms offer this option at no cost and above all without constraints.

Deposits and commissions

Another feature to take into account when choosing a Forex Broker is the minimum deposit.

In this case it is a value that is usually only of interest to beginners because experts, those who live on forex, usually deposit several thousand euros. On the contrary, it is important for a beginner to verify the amount of money that needs to be deposited in order to start investing seriously. Let’s give the good news right away: to date, the amount requested is very low.

To compare two brokers, we must always consider the economic aspects as well. First of all, the broker must be free, i.e. without fixed commissions. Operating on platforms that charge fixed costs for each execution is a real madness that makes you lose a lot of money. The only acceptable profit of a broker is the spread. That’s why when we compare two brokers, we need to make sure that the spread is as advantageous as possible.

Client support

The fourth element of evaluation of a broker is that of the language. Use, exclusively, brokers in your native language or English if it’s a nearly native level.

But, working with a broker in English means, in fact, having to speak to a person on the phone in English if, for example, there is a problem with the platform. Or read a contract in English (because brokers’ contracts and conditions must be read to the end). Now, doing these simple actions could be difficult or, better yet, impossible for most people.

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