Tips for Choosing the Best Forex Broker
You can use the following guidelines to get a trusted forex broker For the best results on your trading.
1. Broker legality or regulation
The first step that must be taken to obtain a trusted broker is to ensure the legality or regulation of your target broker. You can get this information from the company"s official website or ask directly at contact support. When partnering with a regulated broker means that in practice the broker is under the supervision of a competent financial institution so that client funds will be guaranteed security.
If you are targeting a brokerage company in the country, then the regulation is issued by Bappebti (Commodity Financial and Trading Supervisory Agency). Meanwhile, foreign brokerage regulations are given by financial supervisory bodies such as CTFC, ASIC and FCA UK.
2. Customer service
The next point you should consider to get the best Indonesian or foreign forex broker partners is customer service. An official company must have a clear office address and you can use the Google Map service to verify its location. Also make sure that your target broker provides 24-hour assistance with various means of communication such as email, fax, chat, telephone, and so on. Try to contact your target broker and note how long you have to wait until your request gets a response.
In order for your forex trading to run smoothly and be able to obtain optimal results the trading platform is very important for your attention. Therefore consider the following:
- Choose a brokerage company that supports services with MetaTrader software.
- The best forex brokerage company, will guarantee a quality server connection so that your order execution either for opening or closing orders runs stable without lagging or intermittent.
- We recommend that the trading platform can be downloaded with a smartphone so you can do all activities on the forex market more practically.
4. Leverage, spreads, and commissions
In general, domestic brokerage companies still charge commission fees to clients, while foreign brokers usually only take advantage of spreads. The amount of spread that is applied by various brokers is different so you should choose who sets the smallest spread. Or you can also choose a broker that applies a large leverage option if you need a large margin resistance.
5. Adjust to your needs
The terms of service of the broker or TOS must also be taken into consideration for you to choose the best forex broker. It"s important to choose a broker that suits your trading needs and character. Some brokers may not allow the use of EA or trading robots and there are also brokers that prohibit the application of scalping. While other brokers apply the rule that a trader cannot close a transaction before it runs for 5 minutes even though the order of the trader in question has made a profit. The risk that can befall a trader if violating the TOS is not being able to make a profit withdrawal or your profit is canceled by the broker.
To find out if a broker is a trusted forex broker or not the easiest way you can try is to ask a trader friend who is experienced or maybe your guide if this is possible. Apart from that you can also read reviews on various forex forums on the internet.
In addition to having insights on how to choose a credible and bona fide forex broker in Indonesia, you also need to know the characteristics of a fake broker or a scam to avoid being trapped into their clients.
- Unclear office address
To identify whether a particular broker is a scam or not is to investigate the address of the broker"s headquarters. Broken brokers generally place company headquarters in remote areas or countries whose names you may not have heard of. Thus they will be out of reach.
- Hard to contact
Scam companies will make it difficult for clients to submit complaints related to brokerage services, especially when dealing with funding problems. Cases that have often occurred are client complaints that have not been responded to or handling problems that have been stretched out.
- Difficult withdrawal of profits
If the client is successful in trading and wants to withdraw or withdraw the funds that are due, the scam broker will complicate this. If possible your profit can be canceled for various reasons such as violating the TOS, trading techniques that violate the rules, or withdrawal requirements that are not met.
- bad site
One of the characteristics of a trusted forex broker is an official website design that looks professional and easy to navigate to make it easy for clients or prospective clients to obtain detailed information about their services. Conversely, scam brokers will be easily identified by the appearance of their sites that do not look as good as possible.
7. Bonuses don"t make sense
Promos or bonus offers are actually not unusual in the midst of competition from brokerage companies to get clients. But you have to be careful when a broker company gives a promo offer with a value that does not make sense. Therefore you should not be tempted quickly with bonuses like this.
Requote is a change in the value of open, so if a trader opens a OP sell USDCAD when the price is at position 1.4080 and the OP is open at position 1.4075. In addition traders can also have difficulty closing positions when the order has made a profit but cannot close positions. This could be part of a broker sabotage strategy to fight your trading.
What is meant by freeze here is the cessation of movement on the chart for example when news occurs or when many corporate clients are making large profits. This is done so that these traders cannot close their orders because their accounts are temporarily frozen.
10. Limitation of trading techniques
In general, scam brokers will limit trading techniques that may be used by their clients such as scalping, the use of trading robots or EA, hedging, trading when news releases occur, and so forth.
These are some things that you should consider about choosing the best forex broker, especially for novice traders or newbies in the forex market. Hopefully it can add to your horizons.