5 Things you must check before you select your broker!
- By Joe Sheli|21 Aug 2019
Selecting the right trading platform might be the most important decision in your trading carrier. Picking the right broker will not make your account profitable, but I can almost guarantee that if you will select the wrong broker, you will end up losing money.
By checking the 5 things below, you will assure that your money is in good hands!
The number one, and most important, is a regulated company. Regulated companies are obligated to the law, they report to the financial authorities, they must ensure your money(if the company will close, you will get your money back), and get fines when someone does something wrong, like forcing you to open a trade. A regulated broker can’t tell you on which asset to trade, and this is an advantage ( you will soon understand why).
When checking for regulations, make sure that the regulations are in major countries, such as Cyprus(Cysec), United Kingdom(FCA), Australia(ASIC). Don’t open an account with companies that are regulated in a small country.
- Make sure that you understand the product
There are a lot of different ways to invest and make money, the most popular one today Is by CFD/FX, make sure you understand what it means before you will open an account.
By trading with a CFD/FX broker, you are “playing against the house”, when you are making profits, the company that you are working with, losses, make sure you understand that before you join. Never take trading advice from someone who wants you to lose.
- Spreads and commissions
Before you open a trading account, make sure that you get to check the spreads and commissions that you will pay for trading with the broker. Ask the broker to email you a list of commissions, and compare the commissions between the brokers, even negotiate, they will be able to bring the commissions down for you.
Depends on your risk and strategy, you want to have different leverage with your broker (If you don’t know what leverage means, email me: email@example.com, title “Leverage”).
High leverage means high risk, but if you will not use leverage at all, you are killing your trades, you must find the balance between, decide how much leverage you need, and then go and find a broker that gives you exactly that.
The last but defiantly not least are the reviews.
Do not invest with a broker that have bad reviews, of course, there are a lot of bad and good reviews, but you need to make sure that you are checking every one of them, check if people did not get support, didn’t get a chance to withdraw, if the agents were rude, etc.
Trusted website for reviews is TrustPilot.com.