Your forex broker’s choice can make it or break it when it comes to your trading success. To become a successful trader in the Forex market, you have to follow some rules and steps. You can’t just pick randomly the first broker that pops up on an ad on social media, give them your money, sit back and wait for the money to flow onto your account.
At some point, you will probably be able to make your trades smoothly and relaxed. That depends on your ability to dedicate your time to learn the ropes of Forex trading and develop a trading mindset that comprises discipline and consistency. However, the first step toward making profits is to tell apart fraudulent from honest and regulated brokers. Let’s see how to approach this problem.
The difference between scammer and reliable Forex broker
As a newbie looking to make passive incomes by trading on Forex, you are the possible victim of individuals and companies that just want to take your money and disappear. The more Forex becomes popular, and the more Forex trading platforms get sophisticated and user friendly, the scammers will invest more their capacities in taking you into their traps. To spot and fraud is not nuclear science. First, you will not find them on the list of financial regulatory bodies in your country. They will most probably be negatively exposed to broker reviews. There are plenty of broker lists available online to pick up the information from.
Forex scammers will promise you miracles, but when it comes to proving their trading success and enabling you to learn the secrets of forex trading, they will not be very eager to do that. They simply want to take advantage of your inexperience. The good broker is interested in having informed and trained clients to convey the information and trading strategies tricks to them. The profit of their clients also means profit from their company. It’s a win-win situation.
How To Spot Good Forex Broker
Go for the brokers with tight spreads and higher leverage that enables you to make bigger profits. As a trader, you may have different trading accounts and access to varieties of leverages.
Most often, brokers offer 50:1 or 200:1 leverage. The leverage represents a loan given to you to trade with more money than you have at the moment of admission to the platform. For example, you have $1000, and the leverage offered is 50:1, which means you can trade by holding a position at $50 000. This enhances your potential for gains, but the potential to quickly destroy your profits is equal, meaning you should use the leverage with precaution.
When it comes to regulations, the more license the broker has, the more transparent and reliable it is. It ensures that the broker holds on to its reputation and high standards.
Pay attention to withdrawal methods, then broker offers. Also, check out what currency pairs transactions can be made and how much time the money processing takes for the money to get onto your account.
The best brokers have diligent, efficient customer support in your native language. We mention this as the last point, but the importance of customer support is huge.
The trading platform must be easy to use with a variety of tools for technical analysis. miningwatchdog can impact your trading, especially in the moments of overemotional reactions. You can make order mistakes and lose your money if the interface is not visually pleasing and sharp-cut.
Final Thoughts
Don’t rush your decision when choosing a Forex broker. It can cost you losing your money. The best brokers offer the resources to learn to trade, low spreads, and access to the interbank systems worldwide. They handle your money in all security, whether you are trading with small or big amounts of money.