No one can trade on their own in the foreign exchange market or in the foreign exchange market. In order to trade in this market, you need to find yourself a good, reliable broker. Unfortunately, not all forex brokers are honest and give good terms. Some are just scams. To find a good forex broker, you need to go through some criteria that distinguish good brokers from bad ones. Here are some criteria to check before registering with a broker.
The first criterion is the technical support of the broker. Everyone, even an expert, faces problems with trade. The only way to solve these problems is good technical support. The special support team also shows that the broker stands behind its promises that it is a serious company and it cares about its traders. Without good technical support the broker is virtually useless.
The minimum initial deposit is also an important factor to check before putting hard-earned money into a broker’s account. Some brokers require you to invest only $ 25, while others require thousands. It is usually good to make a deposit of at least $ 500 or $ 1,000 before trading, but if you do not have enough money, choose a broker who offers you the best deposit terms.
Leverage should also be checked before choosing a broker. Leverage is your ability to open deals that exceed your initial investment. For example, a leverage of 1: 100 allows you to open a deal of $ 100,000 if you only have $ 1,000. This allows you to make a profit that far exceeds your usual capabilities. However, there is a greater risk in such activities. Make sure your broker offers enough leverage to meet your needs, but don’t be tempted by high leverage such as 1: 500, which can be deadly for inexperienced traders.
The spread is a crucial factor to consider when choosing a broker. A spread, also known as an ICP spread, is the difference between the purchase price and the selling price at the moment. The larger the spread, the more the exchange rate must move in your favor to reach break-even. If you choose a broker, make sure that the spreads in major currencies are very low under normal market conditions. Anything above 6 points is an obvious theft and should be avoided.