It is time to let you know some valuable tips about what it is that you actually should be thinking about and watch out for when selecting the best forex broker.
The spreads and commissions for basic instruments
As spreads and commissions are critical for the successful execution of a productive trading policy, what you can strive for in a broker is consistency in the trading conditions, like the spreads and commissions to be implemented, for the trading instruments that concern you most and that you expect to trade most frequently.
It is a reality that most brokers provide very close trading conditions for trades in the most common currency pair of forex currencies, namely EUR/USD. Still, when trying to exchange a particular share or index or any new cryptocurrency, the story is quite different.
So, decide the tools you are interested in and compare the trading conditions for those tools, remembering to compare like and not apples with oranges, from broker to broker.
The actual expense of the deposit or withdrawal of funds
Several brokers claim that whether a consumer deposits or withdraw money, they do not owe any commissions. It is always the case that somehow there is either a delicate print or a hidden fee that crops up, implying that deposit withdrawals are not, in reality, cost less.
Therefore, it is essential to be completely confident and transparent when comparing brokers. When opening an account, what the available options for deposits and withdrawals are, precisely the depositing or withdrawal mechanism, and what all the fees and costs can be imposed when utilizing either form are likely.
You can also explain why you may only withdraw after making a deposit using the same system used. If in question on either of these or if it is not apparent how the data is delivered to a broker's website on these topics, do not hesitate to contact the broker's customer support team to have an agent guide you through all the information.
Are requotes and slippages available?
When looking for the right forex broker for you, the existence or absence of requotes and slippages is a crucial parameter you can analyze. A requote is when you cannot make a deal at the current market price and get a "no price" response and signal from your broker's server instead of a mistake.
This results in not acknowledging and following the command. Slippage is where the broker declines to execute the order at the desired amount, and the sale continues according to the next quote, which could be either above or below the price you chose. The execution may probably take place at a price range that is less desirable to you.
Market dynamics, especially in periods of high uncertainty, such as during significant economic events or announcements, trigger abrupt shifts in the forex rates quoted.
Regardless of the pace of actual real-time trade, it is likely that there is not enough time for your place to be opened at the requested bid, and either it does not go through at all, it begins at the latest quoted price modified.
Which of the two would happen depends on the settings of the operation of your broker, so this is a knowledge that you ought to do, particularly if you intend to sell in an effort to capture an excellent price movement and maximize your probability of benefit after the release of important economic news.
Unfortunately, once you open and finance a live account and start selling, determining the consistency of the execution of orders, which is important when selecting your trader, will not happen.
When trading on a demo account, this cannot be verified because shared servers handle demo accounts and different ones for existing accounts. If the usable funds permit it, the only real way to better assess and fix this dilemma will be to open live accounts for more than one broker to compare how they cope with order execution under live trading conditions.
The offering of bonuses, rebates, recharge and contests
As a general rule, the different bonuses and other special offers promoted by brokers should be approached with due caution. These techniques are usually used to make you deposit more funds into your account and are typically offered to be used for more trading, not for withdrawal.
Brokers allow you additional leverage in this way, and this could potentially be a good thing if it does not interfere with the execution of your trading strategy and leads you to make decisions that you would not otherwise have, forcing you to take additional and unnecessary risks.
It is not a bad idea to use a bonus or special offer offered by a broker, and you should compare and take into account what each broker offers, provided that it does not force you to increase your trading volume on purpose to qualify for a bonus and end up in violation of your trading strategy principles.
The trading platform that brokers use
Brokers utilizing their proprietary trading systems can not be omitted only because they are likely to have spent extensively in building them and have the experience and technological knowledge to guarantee a smooth trading path, or maybe not? We firmly agree that the MetaTrader systems, the MT4 and MT5, are much stronger than any particular proprietary or hybrid brokers have come up with.
It is necessary, particularly for inexperienced traders, to trade on a tried and tested, reliable platform that has been developed as the industry standard over the years. When contrasting brokers, our recommendation will then be to demonstrate loyalty to brokers utilizing MetaTrader platforms.
Check out our dedicated post on MT4 or MT5 trading platforms for a comprehensive account of the merits of this site.
Getting a demo account and other forms of accounts
Surprisingly, not all brokers offer a demo account option. This may be one point that should help you remove some from your list when comparing. You will need a demo account for practice purposes, especially if you are starting in the trading world.
Also, most brokers sell several account forms that include varying minimum deposit amounts and are associated with various benefits and features. It is worth carefully reviewing what account forms are possible and what is provided in each one while evaluating brokers to distinguish which fits you better and meets your needs and specifications.
Having covered the specific areas that we think you can search for while attempting to discover the best forex broker, let us know that moving to a few other fascinating and relevant aspects that should be taken into account is essential.