Indeed there is a fine logic behind trusting a broker with higher minimum deposits. But the factor of looking into the amount of minimum deposit cannot be the only factor that you should consider before choosing a broker.
Ratings of forex brokers
You cannot deny the fact that in order to be successful in the investment on Forex, one must be meticulous with choosing the right and capable broker, preferably someone with a high ratings of forex brokers. Even though the business of Forex trading gives unparalleled value of profit, it is also equally high risk. And with an investment as huge as this, you really need to make sure that the broker that you will hire is capable of maximizing the profits that you are earning, and at the same time minimizing your loss as much as possible.
But the main issue with most of these traders is that they don’t know where to start looking for the perfect broker. A lot of brokers put up their own advertisements, and promotions, some even offer bonuses to attract more clients. As a result, all this self-promotion is making it harder for traders to know which ones are the genuine and legit ones. But don’t fret, because these things listed below are some of the factors that you should look into in order to find the perfect broker for you:
1. Check online Forex ratings and reviews first!
To search for sufficient information on brokers, check for online independent reviews, forums, rating sites, and Forex message boards. This is where individual traders usually post feedback of their own experiences with certain brokers, be it a negative or a positive feedback.
2. What can this broker offer you that make them standout?
Look for a broker who is capable of meeting what you want and what you need. Do they offer you an MT4? Do they manage accounts? Are they a commission or a non-commission type of broker? Do they offer micro accounts?
And aside from all these perks and features, look into the promotions that the broker is running on. And since deposit bonuses have become more common lately, a broker who offers one would be much preferred.
3. Does your potential broker have a forum?
You may not realize it, but this part is extremely important. A broker with a forum would indicate that the broker is open to any suggestions, feedbacks, or any customer testimonials, giving you a hint that the broker is confident of his reputation. Opening a forum to the public means that the broker is open to criticisms and improvement, making the quality of service better and of high rate.
4. Try out their demo account
A demo account would only make a broker’s genuine intentions stronger. So take a spin on their demo platform and see for yourself whether or not your preference matches the style and technique that the broker uses. With this demo account, you can also test your own trading methods and strategies.
5. What are the essentials?
An excellent Forex broker has:
- A news feed on the live market
- A customer service that is available for 24 hours a day, 7 days a week
- Graphs and charts for trading
- Fast response to orders
- Lessens the loss rate
So with all those tips being said, you now have a clearer view on how to look for the right broker for you.