When venturing into the Forex trading activity, your priority should be the wise choice of the Forex broker. Forex broker stands for you intermediary between you and the markets. In recent years currency trading has gained in popularity. Hence the advent of many brokerages online, and some of them are not a good choice. Going for a reliable trading platform should be your primary concern even before choosing the currency pairs for trading, coming up with the strategy of trading and so on. But how to make the right choice among these Forex brokers? Here are some valuable tips for you. Keep reading.
Focus on the quality of the site’s services
In addition to the broker’s business model, trading services are also among the priority selection criteria for a broker. What platform does the broker use? Are services such as trailing stop, scalping and hedging available on the site? How many currency pairs can I trade on the platform? What languages are used on the site? What support is the broker ready to provide? These few questions give a precise indication of the quality of the services offered by a broker.
The characteristics of the trading account are another significant parameter. Preferably, a trader should deal only with a broker that uses their country’s currency as the base currency of the account. The particularities of the account, in particular the minimum deposit required, the type of spread used, the leverage effect available, the mini lots and the bonuses offered, are all other factors to scrutinize closely before choosing a broker. Without forgetting the security of the site, which includes the regulatory authority on which it depends, the date of creation of the broker and its registered office.
Only a regulated broker is the right choice for you. But to know which broker is regulated or blacklisted. Simply visit the website of the regulatory body in your country or rely on many reviews online which offer a great deal of information, such as Lexatrade review. Not verifying from the very beginning if the broker is regulated, you put yourself at risk of falling into scammers’ trap and losing all your money in no time.
Dealing or no dealing desk?
The choice of a Forex broker is based on essential criteria, which define the quality of the services of each broker, the security of their platform and their reliability on the market. However, even before going into these details, the trader must make the choice of the type of broker with which to deal for his activities. There are two main families on the market: “dealing desk” brokers and “no dealing desk” brokers.
The difference between these two types of brokers lies in the processing of orders. While “no dealing desk” brokers transmit trading orders directly to the markets, “dealing desk” brokers process orders internally and act in their own name on the markets. Conflicts of interest can arise with dealing desk brokers when the trader’s positions go against the trend on which they are playing.