There is tremendous competition among forex brokers. Which they have different advantages and disadvantages, so it is no easy task but it is very important to know how to choose a broker with whom we work.
Inside the analysis while choosing a broker you should take into account various aspects, but one we believe is the one most relevant: regulation.
To choose a good Broker we must analyze the pros and cons of each company must study its capabilities, in addition to the services provided.
Quick Guide to choose a broker
- STEP 1. Learn all as you can about online brokers.
- STEP 2. Compare Brokers with our toolds ans browsing trough internet.
- STEP 3. Try a demo account.
- STEP 4. Open a real account.
There are certain things you should know.
Does the Broker is regulated? If so where?
In each country there is a different regulatory environment and requirements for financial companies. To choose a good Broker is good to do considering that the venue where you are either in a country with regulatory agencies to supervise the broker. When this is regulated at international level requirements may be less stringent; remember than the security is your main goal becaus your capital is at risk.
- United Kingdom
- United States
- Euro Zone
How far the Broker platform is reliable ?
There are two types of platforms, one for desktop and other web-based (Java) is important depending on the hardware and software we have, being very careful about the kind of platform that best suits our needs, which is essential for operations.
Beyond the appearance is very important to the stability of the platform, meaning that in the moments that news or economic events worldwide is published, the platform or block.
When talking about a platform that is easy to use, it referred to by entering an order or close a transaction is made immediately, a single click to the operational management also stop losses. An operator may also have features and characteristics of limit orders and other orders.
A trader needs constant graphics and other aids to manage well the account, a platform that has this type of aid is a good choice when it comes to choosing brokers.
For more competitive prices for both themselves and their customers, the greater must be the creator of market capitalization, this leads to more credit relations with liquidity providers which becomes best prices in the market.
It is very important that investors carefully analyze and evaluate the broker who will choose to operate. Since OTC market by nature is very difficult to get competitive prices without first having deposited a guarantee or a credit institution or a bank.
Remember to be overseen by regulatory bodies, must have a minimum solvency requirement which shows how big is the company, this will also help you to choose a better Broker
¿Broker or Dealer?
It is important to understand and comprehend the difference between a Broker Dealer since there are currently few types of businesses to operate as a foreign exchange OTC (OTC FX).
The broker is an intermediary between the customer and a market maker. It is in charge of sending the customer's order to a third party for execution on the operating table. Brokers earn commission this service and / or commands sent to the table.
The traditional method that most banks or financial institutions have are "trading desks" The prices offered for buying and selling to customers throughout the day have two characteristics, some are quoted permanently, ie its value is the same throughout the day, in other cases, companies use a system of dynamic forks, which means that the price varies depending on the liquidity of the couple. The Dealer is always interacting with others to manage their risk and position in Forex. Dealer prices vary each currency its price a little, this price is based on a book of global currencies.
Not to be confused with the ECN Broker ECN of the stock markets, they are actually quite different.
The ECN broker to act as Dealer or different negotiating table. The ECN distributes to its customers the price and volume to the price previously received from the Dealer. Here the forks are the result of the difference between the best bid and the best price.
Forex is open 24 hours a day, so when choosing a broker is important to note how quickly made the carrier or the customer market.
Note the method or communication system answers all this information is key to answering your needs.
Using the demo account, you can simulate questions in cases of complications at the time of operation.