When you are choosing a Forex broker, there are several important factors to bear in mind: transaction costs, customer reviews, availability of a demo and various trading instruments. Take a look at thefinancialig.com review to grasp what generally one brokerage has to offer to its clients.
So let’s dive into things to pay attention to when choosing the trading intermediary.
Transactions and prices
The pricing conditions of a brokerage company are not fixed by decree but freely according to its commercial objective and the level of competition. Some, for example, may add fixed commissions (or very high minimums) to all transactions. Others may not. You have to be particularly vigilant because the means of taxing the customer are numerous: transaction fees, spreads, account management fees.
Distrust especially towards brokers who claim zero spreads and welcome bonuses that are too high. This is not the most common case, fortunately: brokers generally earn their money from the transaction fees and spreads they display.
But here, too, we must be vigilant. The higher the spread ( which is the difference between a currency for buying and selling), the greater the broker’s reward will be. However, some have low spreads. But this can vary over time: these flexible spreads may appear attractive at first, then suddenly deviate when the broker detects greater volatility or sudden market interest in a particular currency. Brokerages also offer a choice of fixed spread accounts and variable spread accounts.
Demo accounts come very handily, especially for beginner traders. It enables the rookies to explore the trading platform as well as their own trading skills and various strategies. What’s best is that you can start trading with no real money invested just for the sake of practising. It’s also suitable for more experienced traders who want to see if the platform offers what they need in terms of analytics and some more advanced features.
Various trading instruments
These various instruments could be commodities, futures, cryptocurrencies etc. Of course, you are entering the market as a currency trader, but at a given moment, you might want to start trading cryptocurrencies. For that activity, it’s always better to have everything you need in one place, so you don’t switch from one platform to another. With that in mind, prioritize the brokerage companies with as many assets as possible such as those we already mentioned. It also gives you the impression it’s about a reputable and serious company. And one thing is for sure: you don’t want to fall victim to scammers and various “signal sellers”.
Customer reviews of forex brokers
Last but not least: testimonials from former clients. They are crucial. Their comments are essential to understanding how the broker works. By the way, and it is not constant, a broker who has several satisfied clients on a forum is theoretically more serious and reliable than one who is entitled to the most derogatory comments. Be careful all the same with false opinions of members … The number of messages posted by the member having published a positive or negative opinion can be an element to be taken into account to “validate” or not the reality of an opinion on a forum.