The Forex market requires little from the participants. If you want to start trading, then you will need constant Internet access and start-up capital. But you also need to find a good and trusted broker. If you don’t know where to start looking for a broker, then it’s better to find the ratings of the best brokers. Such ratings are based on subjective opinion, taking only the real achievements of the broker and user ratings into account. Look for a good and understandable rating, then check out the list here.
Beginners’ mistakes when choosing a broker
Finding a good broker is luck. Many traders have been trying to find the best broker for years. Although many simply do not know where to look or why ratings of the best brokers are needed. Before starting the comparison, I want to immediately warn against the main mistakes when choosing a broker.
- Mistake number 1: thinking that the broker is on your side. Remember, the broker and the investor have a conflict of interest. The broker is unprofitable for a long-term investor who rarely buys and sells, the broker does not earn anything from him. If it is beneficial for the broker that a person trades, then the broker’s commission is at its maximum. It is also advantageous for a broker to have a person purchase investment products with large commissions sewn into them, so brokers often impose their products or make tricky tariffs. Although if a trader is successfully working in the market, then a tandem with a broker can be successful. The broker will receive his commission from the transaction. Honest brokers try not to charge an extra commission from the trader to leave the client.
- Mistake number 2: misunderstanding why a broker is needed. The main task of the broker is to execute your orders. The trader selects the type of transaction and specifies the amount for which the transaction should be carried out. The exchange provides tools for trading. The choice of instruments lies with you as an investor, not a broker. But a broker can help beginners figure out what tools the exchange provides. In addition, the broker becomes an intermediary between the trader and the exchange. Do not underestimate the broker if you want to reach a stable profit.
Who gets into the rating?
The first places in the rating are occupied by companies that have been operating for more than a year. This is a guarantee of the reliability and integrity of such organizations. In addition, such brokers are well-versed in the Forex world, and it is less likely that they will make mistakes. Of course, newcomers sometimes get into the rating. But this is rather an exception to the rule. It is better to choose a company that has more than 10 years of experience. In addition, customer reviews are considered a stable and reliable indicator. If the majority of the company’s reviews are negative, or if there are no reviews at all, then it is better to choose another broker. It’s not worth the risk. This is your money, which means you need to be responsible about choosing a broker.
Traders should take into account that even when working with licensed brokers, investors can lose money in the market due to the volatility of quotations and lack of experience. But with a reliable broker, the risks of losing funds are several times lower.