If you already know how to distinguish a reliable company from scammers, then the next step for you should be to choose a profitable forex broker. After all, the trading conditions for each of them are different, and your profit directly depends on it. Today we will tell you about the main criteria that you need to pay attention to in order to determine a progressive company that can provide you with the best conditions for increasing your capital.
5 basic criteria for choosing a profitable broker
A truly profitable broker should combine optimal conditions, convenience and ease of trading. Therefore, when looking for the best option for yourself, we recommend paying attention to the following signs:
- The amount of fees. They say that money saved = money earned. Therefore, when choosing a broker, it is worth comparing the commissions that they charge for their services.
- Bonuses and promotions. This may include a loyalty program, cashbacks, commission discounts, deposit bonuses, a referral system, contests among traders, and other incentives. For the company, this is a way to attract customers, and for you – a great opportunity to increase your profits.
- Technical support. While trading, you may often encounter certain questions and problems. And feedback from the company's representatives helps to overcome all barriers and misunderstandings. It is important that you can easily contact the customer service service, and get qualified advice.
- Trading software. If there are frequent glitches, crashes and freezes during trading – all this will negatively affect your results. Therefore, the broker's website and trading platform should work as stably as possible.
- Personal account and account management. It is important to check in advance what payment transfer methods the broker uses, as well as learn the rules for entering and withdrawing money. In addition, you should pay attention to what documents the company requests for verification.
If you choose between several companies, then paying attention to these parameters will be able to determine which broker is the most profitable.
How to find "your" broker
First of all, you need to decide on the instruments for trading. That is, figure out what assets you want to work with: currencies, stocks, bonds, precious metals, and so on. The number of available instruments varies greatly from broker to broker. But the more of them there are, the more opportunities you have for successful trades.
It is also recommended to initially decide how much time you are willing to spend on trading and how often to monitor the market. If you are applying for a high income, then be prepared for the fact that you will often need to conduct trades. To do this, you need to systematically follow the news, as well as analyze the charts (remember the importance of good software).
Here I would like to say more about the fees once again. It is also beneficial for the broker that you conduct a huge number of transactions since his earnings depend on it. In this context, you will benefit from the choice of such a company or tariff, which implies low fees for constant trades and a large trading turnover.
If you need a stable income, and instead of regular trading, you plan to invest long-term, then continious analytics is not important to you. But you should pay attention to the fact that some brokers also charge fees for account maintenance, asset storage, financial withdrawal, and the use of secondary services.
Having decided how much you are willing to invest, you need to consider the rates offered by the broker. This is another important criterion when choosing a profitable trading platform. In most cases, the larger your deposit, the more loyal conditions you can expect.
You should pay attention to the tariffs with low commissions, favorable margin lending rates, minimum spreads, cashbacks and other indicators. In this way, you can get additional benefits.
In addition, some tariffs may include the services of an individual consultant, SMS alerts, signals, auto-tracking, and others. Such tools will also help you to trade more competently.
Spreads and swaps
In this context, the profit depends on which trading method you will use. If you are an adherent of consistent and well-structured operations, it is best for you that the spread is fixed, not floating.
It is also advisable to give preference to platforms that provide the opposite swap rate for different types of transactions. Among the win-win options is a broker that can offer a swap-free account.
Benefits for the beginner
Every person who is just starting to interact with the market should take into account additional parameters when choosing a profitable broker. For example, whether the broker has deposit insurance. If suddenly the company "goes bust", what will happen to your account in this case, and what guarantees you can get.
An important factor for beginners is also the availability of a demo account. Thanks to it, you can try out your opportunities without risk, and understand what your weaknesses are today, in order to pull them up tomorrow, and thereby increase your chances of a high profit.
In addition, the initial deposit amount should be relatively low. Since it is extremely reckless to take risks at the early stages of acquaintance with a broker and the Forex market.
Choosing the best Forex broker is all about finding relevant offers that fit your needs. It is always necessary to analyze in advance the size of the commissions, the presence of a fixed and floating spread, comprehensive support, software stability, tariff plans and other conditions. A profitable broker is a whole set of characteristics on the basis of which you can form an opinion.