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6 important things to consider when choosing a broker

 The retail market is highly competitive, so simply sifting through all the brokers currently available might give you a headache.

 Choosing a trading broker can be a daunting task, especially if you don't know what to look for.

 The quality of the broker is determined by:

 1. Regulation

 The characteristics of a legal broker are that it has a regulatory license, is safe and can be trusted.  As a customer, of course, you will not just hand over money just like that.  Not?

 Checking the credibility of a forex broker is not complicated.  There are regulatory bodies around the world that screen the types of legal and illegal brokers.

 Below is a list of countries with relevant regulatory bodies:

  •  United States of America: National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC)
  • UK: Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA)
  • Australia: Australian Securities and Investment Commission (ASIC)
  • Switzerland: Swiss Federal Banking Commission (SFBC)
  • Germany: Bundesanstalt für Finanzdienstleistungsaufsicht (BaFIN)
  • France: Autorité des Marchés Financiers (AMF)
  • Canada: Investment Information Regulatory Organization of Canada (IIROC)
  • Indonesia: Commodity Futures Trading Regulatory Agency (BAPPEBTI)

 Before THINKING about handing over your money, make sure the broker is a member of the above-mentioned regulatory bodies.

 2. Transaction Fee

 It doesn't matter what kind of trader you are, whether you like it or not, there will always be a transaction fee.

 Every time you start a transaction, you are required to pay a spread or commission fee, so it is only natural that the Customer is looking for the lowest fee.

 Sometimes the Customer may need to sacrifice a low commission transaction for a better broker.

 Determine the need for tight spreads for each type of trade, then do a review of the available options.  This is all to find a balance between security of funds and low transaction fees.

 3. Deposits and Withdrawals

 A good broker will provide deposit and withdrawal services without any problems.

 Brokers have no reason to make it difficult for Customers to withdraw profits.  Because the only reason they keep funds is to facilitate trading activities.

 The broker only accepts funds to make transactions easier so there is no reason to make it difficult for the Customer to make a profit.  The broker will ensure that the withdrawal process is fast and smooth.

 4. Platform Quality

 Most of the trading activity takes place through the broker's platform.  This means that the broker's platform must be friendly and stable.

 When looking for a broker, what benefits does it offer.

 Does it offer free news, How to provide easy-to-use technical instruments?  Is all necessary information for trading provided accurately and correctly?

 5. Price Execution

 Brokers are required to provide the best prices for customer orders

 Under normal market conditions (eg normal liquidity, no important news releases or major events), there is really no reason for a broker not to provide a price close to the market price when the Customer is about to click "buy" or "sell".

 For example, when the internet connection is stable, if you click "buy" EUR / USD at the price of 1.3000, the Customer must get that price or on an equivalent micro-pip scale.  The speed of filling orders is very important.

 A few pips difference in price will make it difficult for the Customer to win the trade.

 6. Customer Support

 Brokers are not perfect, without being supported by an in-house workforce who is easy to contact when problems arise.

 A broker's competence when dealing with account issues or technical issues is as important as their performance in offering trading applications.

 Brokers may be nice and helpful during the account opening process, but sometimes their “after sales” service is very bad and not helpful at all.