The professional participants of the financial market, acting as an intermediary when making deals in currency, stock and commodity exchanges, are called brokers. Transactions take place at the expense and on behalf of clients and surely the online trading broker receives a commission for its mediation. In 90s with the appearance of the Internet, particularly, Forex market began to develop quickly. Online brokers provided an opportunity to trade on the exchange with a small deposit. Brokerage companies receive and send requests of traders to the stock exchange through a worldwide network, as well as they provide real-time information about the situation on the market. Orders for transactions are transmitted through the trading terminal of the online trading brokerage company, which can be installed on your computer or phone. Orders are executed immediately and are reflected on the customer's account. For further successful trading it is extremely important to choose a right brokerage company, therefore, it is necessary to analyze the market of brokerage companies in order to choose the one that best suits to your trading strategy.
Criteria for choosing a reliable forex trading broker for online trading
- Reliability. It is not desirable to check the reputation of the brokerage companies, but in any case it is necessary to work hard and look for objective information about Forex brokers on which you are going to entrust your funds. First of all, check the credibility and the experience of the company in the market, as well as the availability of licenses.
- The size of the spread. The profitability of client’s trade, committing a large number of transactions essentially depends on the spreads of the financial instruments, that’s why you need to choose a forex trading brokerage company that offers the narrowest spreads.
- The minimum amount of the deposit. At the beginning of your trading, most traders prefer to limit their risks by trading with a small deposit, but not every forex trading brokerage company can offer you to open an account with less than $100 or $500.
- Trading Platform. It is a software, through which you carry out your activity, and which must ensure a high speed and stable communication channels.
- A large number of tools. A wide range of tools allows the trader to approach to the analysis of the markets and the elaboration of the strategies more professionally. Some Forex brokers in addition to traditional tools offer more exotic options, such as Personal Composite Instruments (PCI), which allows the trader to create own tools from the offered assets, as well as to trade with the platform from a variety of assets.
- The size of the leverage. Depending on the forex brokerage company and the segment of financial market, the proposed maximum leverage can vary from 1: 1 to 1: 1000. Based on the size of the deposit and the trading strategies, each trader chooses the level of the leverage. Learn more about What is Leverage in Forex
- The support service. The professional stuff of the support services of the forex brokerage company can help a trader to avoid from the problems concerning with the trading platform or the withdrawal of funds from the account, which often causes the loss of the deposit. The quality of brokerage services in the Forex market is of great importance, as the foreign exchange market is the most volatile market, which provides a huge opportunity to make a profit, but at the same time it can be the reason of potential losses.
