Tips to Choose Right Broker
Are you confused in choosing the right broker, or confused with faced with several options broker you do not know to choose which one?
Actually there are many good brokers, but there are many writers who instigate paid you through their review to get a lot of money.
We will give you tips on how to choose the right broker. Because if you do not know how to choose well, then you could be victimized by fake web review, as is often the case experienced by layman in the world of Forex which ultimately harm him.
So, how to choose right broker?
Choose the broker which provides a fluctuating price spread (Not Fix Spread)
The difference in buying and selling price in the market was also fluctuate and is unlikely Fix, so if there is a broker that displays prices Fix Spread then certainly it is not the price on the actual market and the broker is definitely playing behind him to set up your trading results.
Only choose brokers who use the 5 digit after the decimal point (the sixth overall figures)
Brokers are really going to use 5 digit rates in major currencies (like in the pair EUR / USD, GBP / USD, AUD / USD, USD / CHF) considering the market capitalization of forex that the higher it is now using six figures to follow capitalization the. If the broker is still using four digits behind the comma (or the overall figure 5) then surely it is the price they set themselves.
Choose a brokers that provides for a 100% Margin Level
Margins will be very useful to protect you from the risk of capital exhausted if exposed to a margin call.
Do not use the manifold Full forex broker ECN (if it is really that ECN)
If you are trading in Full ECN broker then you will not be able to do the hedging techniques, as well as lower leverage and there are rules of the position FIFO (first in first out) which of course can be a hassle you.
Frequently broker stating ECN, but it’s not the real ECN. If this happens then you should choose a brokerage firm that type Non Dealing Desk STP or DMA then it is better and more flexible.
Do not use a broker that provides leverage is too high
You must have seen a broker who offers a very high leverage with leverage 1: 1000, 1: 2000 even up to 1: 3000 and above.
It was not a good broker, and they deliberately give leverage does not make sense that in order for your funds can be discharged without the rest and finally get into their pockets.
Avoid companies that could use a brokerage cent account
For example you deposit $ 100 but listed in your trading account balance is $ 10,000, well it’s actually aim to manipulate the books to look great. And this is just your kind of broker in the Non-Regulated broker.
Avoid the brokerage firms that provide fantastic bonuses (eg 20%, 50% or more)
There is no free money in this world except Social Foundation. The characteristics broker like this is to give bonuses up to 20% more in fact nothing is 100%. But if the bonus is only 3%, 5% it is still reasonable and there are requirements to melt it.
Becareful for an amazing bonus to 20 % more then it must be consequences over the crime that they organize your transactions that result Loss and money into the pockets of their city. And the average brokerage firms that provide such a huge bonus for sure later on the edges will complicate the withdrawal of your funds.
Use the broker who is already registered and regulated correctly
As already enrolled in one like regulator CFTC / NFA, FINRA, MFSA, FCA UK, MiFID, ASIC. But be careful, because there are some brokers are apparently regulated but actually it was just FACADE and your funds are not actually distributed under the supervision of regulators. It aims to increase their profits and taxes.
Their game here would be to use some sort of two different types of bookkeeping, and typically characterize this broker is able to use illegal money transfer that can not be monitored by regulators.
Please be more careful with the brokerage firm located in the country of Cyprus, New Zealand, Russia, Belize, British Virgin Island (BVI), Seychelles, Panama, St. Vincent and the Grenadines, because in those countries much of the blame are used by scam brokers.
Avoid the brokerage firms that restrict a specific trading strategies and techniques
Such as closing the position should be above 1 minute, restrict the use of robots and the like. Because they are definitely a bookie broker who intentionally want to limit your trading to be difficult to make a profit.
Those are some things you should consider if you want to trade safely in a reliable brokerage firm. Hopefully my tips can help you in choosing a right broker.