One of the most of not THE most important tool for making all of that extra cash in the markets – your broker. In trading world choosing a broker is easy THE most important decision that you are going to ever make. That is why it is important to pay time and attention to what you are looking for in a broker and what defines a good broker for you.
Here are the main things that you should look for when choosing a broker.
1. Regulations.
2. Simple trading platform.
3. Demo.
4. Your type of trading.
5. Fees.
6. Comfort.
1. Regulations.
There are a lot of regulatory bodies that can provide you with assurance – your broker is safe just like your money when you trade with them. Regulation means that you are never going to have any problems with withdrawal and other kinds of monetary operations. And isn’t that the whole point of a broker? Keeping your money safe?
Definitely look for what kind of regulation your broker is authorized by.
2. Simple trading platform.
Simple and understandable trading platform as easily a must of trading world. Especially for beginners. It is also very cool when the platform you are going to use can be mended according to your likings and your preferences. Find out everything about the platform that you are going to be using BEFORE putting down a first trade.
3. Demo.
Demo account is a perfect tool that is going to help you acquaint yourself with the platform. So think about demo as about training wheels – you need to ride with them for a little while so that not to get hurt when you go further.
4. Your type of trading.
There are a lot of trading types that you can try and adopt – scalpers, day traders, long traders… so many options. But you are going to make you choice, although I am not saying that it is going to be in the first few days of your trading career. This is the process which takes up a lot of time. I can even say that as soon as you figure out your type there is high chance that you are going to have to switch brokers as there is no guarantee that the one you are using now is going to suit you in the future.
5. Fees.
Some of brokers prefer to operate with hidden fees. And that is just bad. I tell you, it feels as if you are being scammed. And no one wants to be scammed. That is why good brokers always put their fees forward and never hide this kind of information from their potential users.
6. Comfort.
Even with the most perfect broker you might not feel comfortable. And that is a clear sign that you in the end all that matters is that you feel comfortable with your choice and with services provided by your broker. Everything else is not that important.