You could have fantastic Forex techniques, but all the hard work and study would be for nothing if you run out of money. To be successful as a trader, you have to be very strategic with your actions. And for that you have to choose a very well-reputed broker. Today, we are going to discuss some amazing tips that can help you find the best ETF brokers in the retail trading industry.
Know your needs
Evaluate your personal needs before looking at brokers. Consider an ECN broker if you trade a lot during the day and take modest steps. You’re going to pay a fee on transactions, but the spreads are considerably narrower. You need to trade micro-lots with a tiny quantity of capital. You can start selling small lots for days if you have more than $5,000. Don’t open a regular batch account except for $5,000 or more. Select a broker and account type which corresponds to capital.
Different brokers provide different methods for depositing and withdrawing cash from the account. Choose a broker that meets the requirements.
Now that you know what you want and we hope the list of possible brokers is limited. You might be thinking about the dealing desk type broker to execute the trades but this a big no from us. You want to connect directly with the market and not submit an order to a trading office that starts it in the market if you are a day trader. This takes too long and often leads to “re-quotations.” business opportunity is probably gone because of the time delay. Ensure that broker has a well-built financial infrastructure in a country.
For example, a Forex broker licensed in Cyprus is better than no rules, but you might still have difficulties. Pick exemplary brokers regulated by the United States, the United Kingdom, the Canadian, the Japanese, New Zealand, or Australian authorities. Those who are confused may see the features of Saxo. Try it now and you will know the prime offerings of the high-end broker and this will make the broker selection process easier.
Have a look at the reviews
In selecting a broker, part of the study should look at the written evaluations of the broker and forums. But be careful of them. Without credited information and reputable sources for most platforms, false reviews, both good and bad, will be found. Most traders are losing money every day, and as most traders are unable to recognize this for themselves, they blame others for it. Just because someone laments losing money does not make their broker evil, even if the person who writes a review may blame the broker.
See what people say, but — to a certain extent — choose what to believe. There is much erroneous information out there with no trustworthy reference presented.
Take real-life experience from brokers.
Now you should have a narrower list for the good Forex brokers. But don’t make a choice yet with so much misleading information. Instead, you should be interested in testing the brokers. Open a demo account first and note the terms of trade. It should implement commands immediately. Spreads should not always crash, and the platform should be tight. If the demonstration works successfully over many weeks, a live account will be opened with a part of cash. For example, you may start investing sequentially as it will help you to protect the capital.
Trade with half of the deposit for a minimum of two weeks on a real account. Continue to test customer service throughout this period, ask them questions and evaluate how quickly they answer. Start withdrawing some of the account cash. This may cost many dollars depending on the withdrawal method, but it is worth knowing if withdrawals may be made. You have done proper diligence if all appears okay after all that. Deposit the remaining amount and start trading as usual.
Avoid any “bonus” that the broker may give while opening a live account. Nothing is free. If you get a bonus, the withdrawals may interfere since some money is now the money of the broker’s bank account. Send an email that plainly says that you do not wish to participate in any perks offered.