How to choose the best forex broker
Although trading on the forex market is difficult and tricky itself, choosing the forex broker is the most prominent trade you’ll ever have to make.
Even if you have stellar forex trading strategies, but end up with a fraudulent forex broker that will run off with your funds, all your time and energy will go down the drain.
Therefore, it is crucial to make a wise decision and take into consideration only the top-notch Forex brokers, such as the best forex ECN brokers. It will prevent you from scams and enable you to thrive in forex trading.
Check out the 3 useful tips that will assist you in choosing the best forex broker for you.
1# Determine what you need
Before doing the forex broker research, think about your trading strategy. Ask yourself then first whether you are going to trade a lot or the opposite, and whether you will capture small or big moves.
Once you opt for trading a lot and capturing small moves, you should consider an ECN broker. You will be charged with commissions on trades, but you will also have tighter spreads. In this case, you should check out one of the ECN broker lists with reviews and ratings to choose the best fit for you.
Otherwise, you can opt for a pool of various forex brokers, among which you can find Market Makers or STP brokers.
2# Analyze forex brokers
Once you know whether you should consider Market Makers, STP, or ECN brokers, it is high time to scrutinize forex brokers of your choice.
First, verify if they are licensed, regulated by proper authorities depending on the country, and have a good reputation. For example, in the United States, a reputable broker will be a member of NFA (National Futures Association) and will be registered in the CFTC (Commodity Futures Trading Commission).
Moreover, scrutinize the reviews of forex brokers on reliable sites. These reviews come directly from customers which makes them a highly valuable source of information about each forex broker.
Therefore, search for trustworthy reviews sites with forex ECN broker lists or Market Maker ratings to verify whether brokers of your choice are reliable, fair, and respect their clients.
3# Test out forex brokers
Once you have narrowed the list of potential forex ECN brokers, STP ones, or Market Makers, test them out to finally determine which one of these is the best fit for your needs and trading style. The most prominent forex brokers usually offer a demo account. You should always take advantage of this before making a final decision. A demo account not only allows you to test out the features and platform of each broker but also familiarizes you with trading itself before going live.
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