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Picking a Broker: Essential Basics You Should Look For In Them

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Last time, we talked about what sort of qualities your IB should possess. For today’s discussion, we are going to be looking into essential basics that you should look for in the broker that you’re thinking of picking.

Here are a few of those essentials:

Licensing

Your potential broker must have all of the necessary licensing and accreditation that is required for someone in their profession. Not anyone can just be a broker, after all. They need suitable training and they need to be registered with the necessary government bodies.

All these will help protect the brokers themselves and the clients that they have. You must check with the local brokers association or governing body if your broker is registered with them.

Affability

No one likes dealing with a crabby person—especially when money is involved. While it is unrealistic to expect Mary Sunshine for every broker that you meet, professionalism must be involved. This requires that the broker you speak to be affable. The ability to be personable is needed for someone who is dealing with other people for a living.

After all, if you cannot stand the person that you are speaking to, how likely are you going to trust the recommendations that they give you?

Roots

Brokers that move around tend to have something to hide. Markets are now connected all over the world—the internet has made sure of that. This means that it is no longer necessary to travel in order to trade in certain markets or buy or sell certain stocks.

The very best forex brokers tend to hunker down in one particular place and grow roots there. Brokers generally aim to have generational businesses. If the broker you’re speaking to has had a history of flitting from place to place, you may want to be wary.

These are just a few essential things that you really should look for in a broker! We hope that these will help you choose better in the future.

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Three Qualities Your Forex Trading Platform Should Have

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Not all Forex trading platforms were created equally, and there are literally hundreds to choose from.  Before you select a Forex trading platform you should develop a list of requirements that you want from a trading platform.  Does the platform have advanced charting, which brokers is the Forex trading platform offered through, how many symbols can it support, how many indicators are supported, can you build your own custom indicators.  Think about all of these items in depth and come up with a list of must haves and wants.  From there just start testing different Forex trading platforms and find the one that fits.  Overall, you must choose a Forex trading platform that fits your trading style, but there are some key things that you should remember when selecting a platform.

Patience

You might test up to 5 trading platforms before you find the best Forex trading platform for what you are seeking.  Do not get discouraged if you go through all the tutorial videos of a platform and just don’t find it intuitive enough for what you are seeking.  Just put the platform to the side and find another Forex trading platform.  The good news is there are a lot to choose from including MT4, MT5, Trade Interceptor, TradingView, fxTrade, and a host of others.  Just take your time and really find the Forex trading platform that works best for your trading style, and meets the requirements that you have.

Charting Capabilities

For most Forex traders Charting is at the center of their platform decision making process.  This is because a lot of Forex traders use at least some Technical Analysis when making their trading decisions.  So, when selecting a platform you want to make sure that the platform you select has the charting tools and indicators required for you to make your trading decisions.  The good news though is that no matter which Forex trading platform you choose, most now a days give you the ability to install your own custom indicator to the charts.  Although, you may need to hire a computer programmer to build your Forex indicator to work with that specific Forex trading platform if you do not know how to code.

Broker Options

Understand which platforms are offered with which broker.  You may be find a platform that you really like, such as the fxTrade platform.  However, that platform is only available via the Forex broker Oanda, since it is their proprietary platform.  So, if you wanted to trade at ThinkMarkets for example you would not be able to do so because ThinkMarkets does not offer the fxTrade platform.

One Forex trading platform though that is universal across all most all Forex brokers though is the MT4 platform.  The MT4 platform, which was developed by Metaquotes is the most popular Forex trading platform.  The platform was built with ease of use in mind, so a lot of beginner Forex traders tend to use the platform when trading Forex.  Additionally, the platform has the MQL5 computer programming language, which allows Forex traders to build custom indicators and algorithms, which Metaquotes calls Expert Advisors.

These are just 3 things to consider when choosing a Forex trading platform.  As mentioned in the beginning of this article make sure that you create a list of must haves and wants prior to testing. Then test the platforms and find the one that fits you well. There is no pressure, have patience and take your time. After all, you are about to risk your hard earned capital.

 

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Protect Yourself: Signs the Broker You Spoke to Is a Scammer

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The best forex brokers are a breed apart from normal brokers. They make a ton of money and look good doing it so it really isn’t surprising that there will be individuals who are interested in acting like legitimate brokers to get a bit of that good money.

The trouble is, those people are often fraudulent and just end up taking the money of budding traders and investors. Here are a few sings that will help you determine if the broker you spoke to is actually a scammer:

No Varying Reviews Online

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Online reviews are readily available in today’s world, of course. You merely need to load up your favorite search engine and type up the name of the broker to see if people have negative or positive opinions about them.

It is practically impossible to get 100% positive reviews. There will always be people that have something bad to say. So if the search results only swing in the positives, it is good to take that with a grain of salt.

Pressure to Trade

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No broker—especially a forex introducing broker—will ever put pressure on you to start trading. If you ever start to feel pressure coming on rather strongly from the broker you’re speaking to; particularly, if you just started talking to them.

Brokers do make money off of commissions but this does not mean that they will ever push a client until they are ready.

Unverified Results

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Brokers who have a good reputation have substance to back it up. If the broker that you are speaking to talk big game but cannot provide substantial proof or results, you need to be wary. You must look beyond any spreadsheets that are flashed in front of your eyes.

Learn how you can discern legitimate results from smokescreens.

The world that we have now requires that we be extra careful about who we trust; especially when money is involved. What signs do you look out for regarding fraudulent brokers?

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Function Beyond Titles: What Does a Forex Introducing Broker Do For You?

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When it comes to the land of forex and forex trading, there are always options for the kinds of brokers that you can choose to help you out. Today, we wanted to clarify a little more regarding the concept of forex introducing broker.

Here are a few things that an Introducing Broker or IB can actually do for you:

Handles Pending Trades

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A lot of brokers—especially ones that work for large firms—look over the account of a client and pass on the information to the floor handler. It is actually very rare for firm brokers to handle the trades themselves.

IBs actually do the pending trades themselves. They are more hands-on than other forms of brokers. This gives their clients the assurance that they are working with someone who has a strong working knowledge of the ins and outs of the trading.

Educates You on Trends

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A forex introducing broker works with you—and not for you; this distinction is important. Most other brokers will simply give you their idea of a good trend and expect you to trust them on what they are saying.

An IB will actually educate you on the trends as they occur. That way, you can make your own decisions and eventually spot certain trends so that you’ll be able to pick things out.

Provides Multiple Options

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While you are gathering your bearings regarding forex market trends, an IB will always provide you with multiple options that you can consider. There will always be a bit of a case why each option is viable and what you can expect from it.

Most other brokers will generally just single out what they perceive is a low-risk option and wait for their client to give them the go signal.

We hope that today’s discussion helps you better consider what an IB can do for you. If you’ve worked with an IB before, what sort of services have you experienced?