06/05/2021
How to choose a good broker
Internet is brimming with recommendations from industry experts on how to choose a good and reliable broker. We have collected all the tips together and invite you to familiarize yourself with these criteria to be able to choose "your" broker.
1. The brokerage company's reputation
Today, almost all the brokers in the market have trading licenses, so it means little. Reputation is an entirely different matter though, as no money can buy it. This is why you should carefully study the broker's website to see if you can trust them. Read the articles about the company in the media, look for objective data on independent websites, and ask your friends in the industry.
2. The size of the first deposit
Traders prefer to start trading with minimum risks, so they look for brokers who will offer them the smallest deposit. However, this criterion is very dubious, since truly reliable brokers value their prestige and could put the minimum deposit at around $500. So you should look for a compromise between the amount of money you are willing to deposit and the actual possibilities of the platform.
3. Fee size
Trading fees are a way for brokers to make money. They usually range from 0.02 to 0.05% of the trade amount. This number is very important for any trader, as it shows how much money the broker will keep from each transaction. Some brokers may charge additional interest for certain services. To reduce costs, you should look for a broker who charges a fee only for trading operations.
4. Leverage size
This is the amount of money a user can borrow for trading on the security of their capital. The leverage ratio can be different: 1:2, 1:10, 1:50, and even 1:500. More experienced and risky traders choose brokers with a large leverage. Others do not use this tool at all. However, even if you will not use it either, it is important to understand that the higher the leverage, the more reliable and experienced the brokerage company is.
5. Deposits and withdrawals
The depositing and withdrawal of funds is perhaps one of the most important criteria for selecting a broker, since making money is one thing, and creating a deposit or withdrawing funds in a convenient way is quite another, and rather more complicated. Good brokers will never try to stop their clients from withdrawing funds, and they will never delay payments for common or simple reasons. This could only happen due to serious problems. In order to not make a mistake at the very beginning, you should deposit a minimum amount into your account with the broker and then try to withdraw it. This way you won't lose a lot of money and check the withdrawal functionality.
6. Open access to relevant analytics and information
If a broker has all the relevant information about company reports, analytical market data, as well as economic and political news, this could significantly up their standing in the list of the best platforms. This is why you should check the quality of the information provided by a particular broker.
7. Trading apps
Many brokerage firms let their clients trade not only online but also via convenient applications they could install on their PC, laptop, or smartphone. This facilitates the investor's work and allows them to keep trading even if the website is experiencing some technical problems. Pay attention to such apps. Many brokers have them, but not all of them are useful or convenient.
8. Support service
Any platform could have inaccuracies, errors, or simply individual issues that a specific user encounters. They could also have data input/output errors or depositing and withdrawal issues. Or you could simply lose the password to your account, which is even more frustrating. This is where the support staff comes to the rescue. They can advise you not only on software issues and accessing certain broker functions but also help you understand trading nuances. So before you open an account with a broker, try talking to its support managers. See how the service works and check the feedback speed and staff qualifications.
During our webinars, our experts will tell you more about choosing a broker that suits your needs and capabilities, as well as your goals and means. You will be able to ask us anything you want and get comprehensive answers right from the experts! Use the link in the description to take advantage of this opportunity!
