How to choose a reliable and trustworthy broker to trade?

How to choose a reliable broker?
How to choose a reliable broker?

For everyone who wants to do online forex transactions or what we commonly refer to as trading must first look for a brokerage company or commonly known as a broker.

We divide brokers into local brokers and foreign brokers, which meant by local brokers are brokers who come from domestic and foreign brokers are brokers who come from abroad (both from large countries and offshore brokers).

Brokers are companies that provide online forex trading facilities and most enjoy selling differences at the bid and ask prices or spreads.

There are so many brokers all over the world, so we must be careful in choosing good and reliable forex brokers so we don't get caught in a fraud and fraudulent brokers.

How to choose a trusted forex broker? The easiest way is to ask a friend who has experience or search for various references. No need to confused anymore, this article will review various criteria that can consider when choosing a good forex broker.

Criteria for a good broker

Types of brokers

This is an important aspect in choosing a broker, you must know the broker, you can ask the CS about how the broker operates. Minimum if you want to be safe you can avoid 'bucket shop' broker. Whether the company is a broker or dealer? Dealing Desk or Non-Dealing Desk?

Broker Identity

Obviously, a good forex broker has a clear track record, starting from when it established, under what company, to where the office located.

A good forex broker should provide a complete communication medium, ranging from chat, email, telephone, to the office address.

Conversely, you need to be careful when finding a forex broker with an address only in the form of a PO Box or even an ambiguous address of its location.

Broker's Regulatory Status Proven 

We often consider regulated brokers better than unregulated brokers, even though there is no 100% guarantee.

Regulated Broker, so you have got permission from certain financial regulators.

A good forex broker must comply with the regulations and supervision of financial regulators in the country where the forex broker operates or operates. Example:
  • In the US, brokers must register with the Commodity Futures Trading Commission (CFTC) and be a member of the NFA.
  • In the UK, forex brokers need to get a license first from the Financial Services Authority (FSA).
  • In EU, forex brokers need to get a license from the European Securities and Markets Authority (ESMA) or at a minimum, has a regulator in the broker's country of establishment, for example, BaFin Federal Financial Supervisory Authority in Germany
  • In Asia, forex brokers need to get a license, minimum from the regulator in the broker's country of establishment, for example, Financial Services Agency (FSA) Japan, Monetary Authority of Singapore (MAS), or Securities and Futures Commission (SFC) Hong Kong
  • In Australia, forex brokers need to get a license first from the Australian Securities and Investments Commission (ASIC)
  • For brokers in Offshore countries, there is at least a regulator such as International Financial Services Commission (IFSC) Belize, Cyprus Securities and Exchange Commission (CySEC), or Financial Services Authority (FSA) Seychelles.

Nearly all brokers will list the regulatory status on their site. However, sometimes some entities claim to regulate in a country, even though that is not true. Therefore, you need to crosscheck the relevant regulator's website to make sure it is correct.

We can access a complete list of regulators and links to their respective sites on the Forex Brokers regulator list, which is usually available on the regulator's website.

There's nothing wrong if you deliberately choose an unregulated forex broker because not a few numbers of brokers like that are reliable. However, avoid forex brokers who commit fraud regarding the status of the regulation.

Forex Broker Facility

Forex Broker Facility makes it easy and according to your needs after proving the identity, regulation, and reliability of CS brokers; the next step is to review the trading services and facilities. Traders will rate the broker as good if it provides:

  • Thin spreads are better.
  • Leverage starts at 1: 100. Leverage that is too high two thousand can be dangerous and lead to bankruptcy; but if it is lower than 1: 100, it will curb you when you open trading positions. 
  • Forex demo account, which is a trading account that can try platforms and broker services for free without the need to deposit funds first. 
  • Various methods of depositing and withdrawing funds, ranging from Bank Wire, Bank Transfer, Debit/Credit card and e-payment.
  • Forex trading platform easy to download and use. World forex traders use the Metatrader and cTrader platform. However, if the broker provides a different platform then no problem. The most important thing is price data can get smooth, order execution is fast, there is a complete technical analysis tool available, and you can use it.

Customer service must be responsive

Broker Customer Service, in providing support at least 5 days a week, must be the main requirement. The more complete methods of communication, for example, email, telephone, fax, live chat, WhatsApp, and telegram.

Live support facilities can help us when we need help to overcome technical problems when trading forex. The quality of support and response can vary from one broker to another, so we will test them before opening an account.

There are tips you can try:
Make a few questions about any forex, then tell them, then see the speed and quality of their responses. Pre-sales services are better than post-sales services. So, we take it if the pre-sales service alone is disappointing, especially later when it becomes a customer.

Well, that's it, good and trustworthy broker criteria. There are actually many forex brokerage firms, gold brokers, CFDs, and good stock brokers. However, many brokers allow spam and therefore you must understand in choosing a broker because if you do not understand then you can get cheat by web reviews that are not true, deceived by marketing, as is often the case with ordinary people in the world This Forex is ultimately detrimental to him.

Lately, I am also uncomfortable with the amount of spam on social media with the lure of extraordinary income without caring about the risks in it.

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