Tell-Tale Signs of a Good Forex Broker
In such a crowded, bustling marketplace, consumers are given so much choice online for products and services, it can often leave us with a headache.
This is particularly the case when looking for a movie on Netflix for example. There is so much choice that by the time we settle on a movie, we don’t feel like watching one at all. We may look at the star rating as a guide but with over 200 movies with ⅘ stars, which one do we choose? If it was the choice of 3 movies, the decision-making process would be made much simpler.
The point is, that choosing a product, service can be exhausting when we don’t have any diagnostics to gauge a product. This can be particularly true in choosing a Forex broker which is:
Transparent with its clients
Suited to your trading needs
So what features should prospective traders look for when browsing the web for an online brokerage?
New STP broker EagleFX provides pristine trading conditions on over 200 assets including Forex, Cryptocurrencies, Commodities, and Indices.
This article will run through some key broker features that can help to enhance your trading success.
When looking for a broker, you may wish to consider the type of platform best suited to you as well as the platform features. Platforms such as MT4 come with lots of indicators and features to enable you to visualize market trends effectively.
Consider the spread. The spread is the difference between ‘Bid’ and ‘Ask’ price. The tighter the spread, the better for the trader as this determines the commission you will pay on an instrument.
Tight spreads allow an opportunity to make big profits when there are small price movements. Scalpers like tight spreads because ultimately they will be opening and closing most trades, thus being charged commission per trade by a broker.
Execution speed should be high on the agenda too. This is how quickly an order can be filled after submission.
EagleFX uses Straight Through Processing meaning no dealing desks resulting in trades being executed in milliseconds. Sign up is free and you can start trading from as little as $10.00.
Leverage is a biggy when considering a broker. Like it or loathe it, trading with leverage truly enhances earning potential. That being said, leveraged trading can magnify losses so it is important to understand leverage before selecting your leverage setting within a trading account.
Trading with leverage allows a trader to open positions using much less initial capital investment. Trading large volumes with low capital.
To give an insight into the maths attached to leverage:
A leverage setting of 1:100 allows a trader to trade with $5,000 worth of volume from a $50 investment.
$5,000 / 100 = $50.00
Traditionally stock trading was reserved for the rich and powerful – people who had access to large pools of liquidity. Now thanks to leveraged trading, pretty much anyone interested in trading CAN trade if they wish, using on online platforms that offer high leverage settings.
It is advised that less experienced traders practice using a broker platform with leverage or to even reduce leverage size until a solid trading strategy has been established.
Benefit form Leverage settings up to 1:500 on over 55 Forex pairs at EagleFX. Create as many trading accounts as you wish with the flexibility to adjust leverage as you please.
Having access to a dedicated, round the clock customer support team, should not be taken for granted. All traders with varying levels of experience will eventually need support. Whether that be via email, LiveChat or telephone. A good broker will have an array of contact points for you to seek assistance whenever you need it.
24/7 support is of particular significance when considering trading on the Crypto market as this itself is open 24 hours a day, 7 days a week.
Take a look at what deposit and withdrawal methods a broker offers. Rapid access to liquidity is massively important towards your overall trading success, particularly if you suffer from FOMO.
In volatile Cryptomarkets, you need to rely on a broker which will process deposits and withdrawals quickly as to not miss out on vital market movements.
Using Bitcoin as a primary deposit and withdrawal method is a solid way for you get funds in and out of your account quickly as this removes 3rd parties such as banks where delays can occur when handling the administrative side of bank wire transfers for example.
When withdrawing via Bitcoin, funds will generally reach your BTC wallet within minutes of being sent by the broker.
A broker offering affiliate programs is a dream for traders who already have an existing online following. It is also ideal for traders who know many people who are unhappy with their current broker and are considering migrating to another.
What an affiliate program does is allow a trader to increase their earning power by referring friends, family, acquaintances or anyone who signs up and trades through your affiliate link.
Certain brokers will provide an exclusive affiliate executive to help you with your affiliate campaign whilst providing a range of marketing materials to make that campaign a true success.
Finding a broker which has most are all of some of the aforementioned is a telltale sign that you are on to a good lead.
EagleFX offers high leveraged trading with no ongoing account costs. All of which backs into the MT4 trading platform.
Earn up to $5 per traded lot thanks to their brand new multi-tier affiliate program.
Don’t delay and boost your trading potential from today!
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