It is no secret to anyone today that any amount of information can be obtained on the internet; this can be truthful, or it can confuse us when looking for information on any topic in which you are interested in learning more. This does not escape the issues related to Brokers, cryptocurrencies, and their use in Forex. On the contrary, every day, you find more and more information, which can sometimes be confusing, and you will wonder why this article is different from others? Simply, because it will explain the basics, the main, the minimum that you should know when entering this world, which is what the typical forex investor looks like.
How can you then choose the right broker? Listing and explaining the main characteristics that the best Brokers have. And how will you know that what you find here is true? Continue reading this article that is based on the analysis of different aspects of the best brokers and on basic guidelines that, in the end, you and only you, will prove you right.
Anyone with a good internet connection and an excellent trading platform can become a Broker. Still, it is important to know that there are statistics that ensure that very few achieve the long-awaited success. If we analyze the eToro broker profile, then it will be clear that only 1 in 10 Brokers achieve the expected profitability. It is also noteworthy to limit other general aspects, such as the fact that the majority are men, with ages between 30 and 40 years, they are relatively young.
Without further ado, let’s thoroughly detail the features:
1. IT IS RELIABLE
This feature is essential since any transaction carries the risk of some amount of money. Also, by itself, the investments carry the associated risks on the invested capital, therefore. It is not necessary to increase the risk with a broker of dubious origin.
One of the main indications that it is reliable and must be taken into consideration is compliance with the corresponding regulation. It must be registered with the official entities, and these guarantee the regulation and operation of financial intermediaries. As a security-related complement, it is advisable to prefer Brokers with an excellent reputation. This rather simple and intuitive aspect can be overlooked many times.
2. IT HAS REASONABLE COMMISSIONS
As in all investment operations, for each purchase and sale operation. Every broker will charge an amount for each operation, both purchase and sale. The percentage of this type of commissions is typical. It varies according to the type of instrument that is traded.
Therefore, it is of utmost importance to take into account which one accepts to generate a higher profit. The commissions applied should not be very high. Otherwise, it may lead to lower profit margins.
You should be aware of the different commission schemes applied. Look for references, which always allow you to have a reference margin.
3. FOREX LEVERAGE
The best and most recognized tend to provide tools such as leverage, which allows operations to be established for amounts greater than the available balance. Or put another way, it is an example of financing that it provides to its users in a certain transaction.
Thanks to leverage, you can open countless positions with the amount of your capital. In other words, leverage is a way for you to trade much larger volumes than you own, using only your capital. As a result, it is possible to access operations that you generally do not have access to.
In this method, it is possible to enhance the efficiency of the trader within the market. And consequently, obtain higher profits, and also losses. In some cases, it is a necessary instrument, but if it is not used correctly, it can sink the investor.
4. CUSTOMER SERVICE
In this aspect, we can find that it is a frequently forgotten area. However, on this, the decision of a large investment can be based, since it is based on allowing support when the platform generates problems or generates errors. More effective general operations, and as a consequence, the chances of losses are decreased.
There must be some quick communication channels, knowledgeable about recurring issues.
It is essential that we verify the authenticity of what these professionals say, currently that in some cases, they show us all the advantages and benefits that we can achieve with them, but they omit the “negative” portion, that is, the possible risks to which they are exposed. Submit, for example. Good customer service is the one that informs absolutely all events. Finally, it is equally significant to look at other details, such as the languages in which it is available since it can be a setback when communicating.
These 4 basic characteristics allow us to generate or give a vision of what could be the best option when searching among so many, the best.