Choose a broker that can accompany you on your adventures in the financial markets? It is not really a very simple thing, considering a large number of operators that are at your disposal today and the high number of technical aspects that you should examine. To help you make a better assessment, we’ve selected five tips for you to keep in mind below.
The Smart Solution for You
Account security and broker regulation. The most important point of evaluation when choosing a Forex broker is its security. We believe that at the end of the day all you want is for your money to be safely deposited and stored by a broker regulated by a relevant financial authority. So make sure you find the broker’s regulatory body on its website. For convenience, you can also consult this list of regulated Forex brokers, the reference point for online traders since 2006. By doing so, you will only be able to relate to brokers recognized by the competent authorities and able to deposit your funds safely. This is where GigaFX comes with the best options and that too within the proper setup.
The Perfect Options for Leverage
Leverage instruments and risk management. Most major currency pairs usually move in a range of +/- 1% per day. Therefore, in order to be able to profit from these small price movements, in Forex ( Foreign Currency Trading ) it is important to try to guarantee the possibility of acting by moving financial leverage.
- Leverage is a sort of “loan” provided by the broker, which can be used to open transactions that are significantly larger than those actually allowed by the money deposited into your trading account. In return, the broker will automatically reserve a part of your trading account as a guarantee for the loan, the “margin”.
- Try to understand what are the opportunities actually granted by your broker for currency pairs of your interest. Of course, also keep in mind that you are absolutely not obliged to invest in financial leverage and that, especially in your early trading phases, you should avoid investing with leverage.
At the same time, it also evaluates the risk management tools that the broker proposes to you: stop loss and take profit are the bare minimum, but we advise you to go further in consulting the various position administration tools (price alert, etc.). Speaking of positions, although you can’t completely avoid the transaction costs, it is clear that you will prefer a broker with tight and competitive spreads, weighing this assessment with the fact that – like everything in life – the cheapest broker is not always the best.