As a trader with many years of experience, I have already met and tested a number of brokers. Therefore I can pass which points you should definitely pay attention to. Certain characteristics should be given for safe and reliable trading.
Of course, when choosing a forex broker, you also look at the fees. But this shouldn’t be the only thing you should pay attention to. Otherwise you will catch the wrong broker and in the end make even less profits than with a forex broker with higher fees (spread). Regulation and license are mandatory. But there are other features that need to be considered.
A good provider should have these characteristics:
- Regulation and license by an official supervisory authority
- Security of client funds
- Good trading conditions, small fees (spread, commission)
- Fast execution of trades
- personal, good support
- Fast deposit / withdrawal of customer funds
How does a forex broker work?
A broker is the intermediary between the trader and the market. There are two different types of broker
Market Maker Broker:
This broker does not forward the customer’s trade directly. This often creates disadvantages for the customer. You may get worse rates for trading.
Here you have direct access to the Forex market via a liquidity provider. The broker puts the customer’s order through directly. This gives you the real market prices for your trade. So there is no conflict of interest between customer and broker as with market makers.
WHICH FOREX BROKER IS SUITABLE?
After various tests by other brokers, I have been very satisfied as a customer of FXGlobe for a long time. While you can only see other brokers advertising so that new customers are constantly coming in, you tend to rely on long-term, satisfied customer relationships.
But how do you see that?
It is regulated and has a direct, German contact person. This way, all questions are answered quickly and clearly. While with many (especially large brokers) you are just a number and receive an 0815 answer by e-mail after days. In addition, it is an ECN broker so there are no disadvantages of a market maker broker.
What do you have to pay attention to when choosing a broker?
The most important thing is a license and thus appropriate regulation. Then you should look at the fees? What’s the spread like? Do you get the real currency rates?
Then you should test the execution of the trades. Are these carried out quickly and reliably?
Support is just as important. Does this answer quickly and reliably? Do you get helpful answers or only ready-made standard answers? Is there a German-speaking support available?
Are there any hidden costs?
If one of these points is not met, in my opinion it is not your right trading partner.