Tips for Choosing the Best Forex Broker

See the source image

Struggling in choosing a safe and good forex broker is easy. Along with the development of the forex market, certainly, the number of forex brokers is also increasing. This will automatically make it difficult for you to choose the best forex broker, let alone trusted. Choosing the right forex broker needs the right strategy and how to trade forex as well. How to choose the best forex broker?

You as an investor must analyze the investment objectives, the number of funds to be invested, the type of trading, the period of trading activities, the strategies to be used, and also consideration of risk tolerance. A forex broker that will help execute forex trades.

Forex can be a profitable trading activity. People consider this an investment but it is a regular buying and selling business but with a sophisticated system. What is sold is foreign currency so you need knowledge and experience in running it.

To find the best one will require you to first know the type of investor you have and your goal of investing in forex. Of course, we cannot deny that every broker has advantages and disadvantages. What is clear, there are three main factors of comparison here, namely security, regulation, and also transparency of transaction costs that often trap investors who are still new. Some brokers have integrated security features such as two-step authentication to keep accounts safe from hackers. Many forex brokers are bound by rules. Brokers in the US are regulated by the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC), and France, Germany, Switzerland, Austria, Canada, the UK, and Indonesia also have their regulations.

Here are the features of a good Forex Broker

1. Allow all kinds of trading techniques, including scalping, martingale, etc.;

2. Allow hedging or locking;

3. Does not allow transfers with 3rd parties, due to security factors and legality of money laundry (transfers must be with Bank Transfer directly to the brokerage company concerned, NOT with non-legal media such as Liberty Reserve (LR), Vouchers and transfer certificates with individuals or different names);

4. Leverage provided starts from 1:100. Ideally 1:200 or max 1:400. Don’t be more like 1:1000 because it will blow up your trading account.

5. Know the long establishment of the brokerage company. The minimum must be above 5 years.

By trading forex, you are already risking investment funds that are not small. The greater the yield, the greater the risk. So be wise in choosing a forex broker and forex trading company. Remember, choose a forex broker with a good reputation, and don’t trust the ratings, awards, and the like that show they are the best broker. Except those that give ratings are truly trustworthy institutions like Forbes, Fortune, INC, Barons, Deloitte. Outside the board, it’s best not to.

Know the Type of Forex Broker

Do you know about how many forex brokers there are in the world? According to a case study conducted by FinanceFeeds in 2016, there are at least 1,231 Metatrader-based forex brokers worldwide. With the number of forex brokers certainly make traders confused to choose which broker is really the best. Choosing the top forex brokers in world is very easy to do if you have understood the different types of forex brokers and can compare the services they serve. By looking at the reviews of the broker you will choose in the IC market will certainly help you see the performance of the forex broker.

Judging from how the system works, there are two types of forex brokers, namely brokers with Dealing Desk (DD) and No Dealing Desk (NDD). DD brokers are also often dubbed bookie brokers (Market Maker). Meanwhile, NDD type brokers (not bookmakers) can be classified into two more, namely Electronic Communication Network (ECN) and Straight Through Processing (STP). In addition, there are also forex brokers that provide DD and NDD facilities at once, so it is dubbed a Hybrid broker. What marks the difference between these types of forex brokers? Let’s put the review together.