Choosing a Trading Broker
It is important to use reliable and trusted online trading brokers if you are to get the best possible trading conditions and a sense of security. With so many to choose from it is imperative to conduct thorough research on all of the different options available to you. This could take a very long time with so many online brokers to choose from but you can use a trading broker review website to help find some the best trading brokers based on a variety of different factors.
When looking for an online trading broker most people will agree that the important factors to consider are the brokers regulation, how long they have been in business, trading conditions, trading platforms, trading tools, funding options and customer support. If you like to trade markets other than forex then it would be worth checking if the broker offers CFDs on things such as commodities, energies, metals, shares, indices, etc.
Another consideration is if the trading broker actually accepts clients from your country. Some online brokers are limited to where they can provide their services due to regulations. Often it can be difficult to find a US trading broker due to the strict rules in the US and expensive costs for brokers to get regulated there. This causes some traders to look at offshore brokers which does have its advantages such as increased leverage but also has its disadvantages such as potential security issues and the fact that increased leverage can actually increase losses.
Most online brokers offer demo accounts which can be a good way to get a feel for their service including the trading platforms that the broker offers and different account types. However, demo account conditions can be different from real live account conditions so this may mean different spreads and slippage. Opening a demo trading account is also a good way to practice your trading strategies and also see what the customer support at a chosen broker is like.
Time in the industry is something worth considering as well. A broker that has been around for over a decade would probably have a more established reputation, experience and financial backing compared to a relatively new broker. There should be plenty of online brokers reviews for a broker that has been in business for a longer duration of time. Broker reviews can be a good way to get an idea of how they respond to client complaints and what sort of complaints clients have. I always keep in mind that no matter how good any service, there will always be people who think it is terrible – that is just the nature of business, not everyone will be happy!
Going back to trading account offered by brokers, if your trading strategy requires a fixed spread then you would want to make sure they offer fixed spread accounts and the value of the spreads are suitable. If you want the tightest spreads possible you may need to look for a variable zero spread account and be willing to pay a small commission fee.
The type of execution used by trading brokers is worth considering. A market taker may have a conflict of interest with traders if they are taking the opposite side of their trades whereas a non-dealing desk broker should not interfere with client orders but put them directly through to liquidity providers on their ECN.
Overall, there are many important factors worth considering before choosing an online broker and with so much information to go through it is useful to have it all in one place where you can read broker reviews, see ratings and compare trading brokers to determine who are the best online brokers for you. They have sections categorised including broker reviews into best online brokers, best forex brokers, best CFD brokers and best crypto brokers.