FIVE things to look at when selecting a Broker
Credit: Jaco van den Berg
A Broker plays a key role when it comes to becoming a successful trader. But how do you select a broker?
These are FIVE key things to look for when selecting your broker and taking your first steps to becoming a successful Forex trader.
1. When selecting a broker, you want to ensure that there is no conflict of interest between you and the broker. You don’t want a broker who is trading against you. Often brokers want you to lose, as that’s when they make their money. Good signs to look for are when brokers hedge your trades, meaning they only make their profits from your spreads and overnight charges. BlackBull Markets is an ECN broker (Non-Dealing Desk) meaning we connect you straight to the liquidity pool to ensure no conflict of interest.
2. Ensure you aren’t getting scammed. A transparent broker is a good sign. A good broker should be clear and concise about their companies’ values, what they are doing and what their intentions are. Common red flags to look for are when they aren’t open to discuss how they make their money, as this is usually an indication of shady business and may result in you as a trader getting scammed. A regulated brokerage is also a sure sign that you are in safe hands. This ensures that your broker legally must abided to strict policies that protect you and your money. BlackBull Markets are regulated by the FSPR (Financial Service Providers Register) and are governed by New Zealand law.
3. A good broker should provide a wide selection of markets to trade i.e. a large variate of currency pairs. Even if you have no current intentions of trading certain currencies, its nice to have the option to do so when you please with out the hassle of finding and selecting a new broker to trade a new pair. Tight spreads are a must when selecting a good broker. As the trader, you don’t want to be paying multiple pips to cover a widespread. Essentially the tighter the spread the lower the cost for you and the more profit you can take form each trade. BlackBull Markets provide extremely competitive spreads, ensuring lower costs and more cash in your pocket. Furthermore, BlackBull Markets provide a massive range of over fifty tradable currencies and FX pairs, as well as CFD’s and Metals including XAUUSD and XAGUSD
4. You as the client should be the priority of the broker. A good customer support with a 24/5 support team, ensuring customer questions and queries are attended to regardless of the time zone. A good way to check this is to note how long it takes to get a response from the customer support live chat, available on the company’s website. The platform the broker provides should be user-friendly to ensure an effective and efficient trade experience. You don’t want a over complicated platform that distracts you from your trades. The platform should provide a good range of tools to ensure effective usability. BlackBull Markets has a 24/5 support team working around the clock to ensure a more than satisfactory trading experience.
5.Perhaps a less crucial point, would be to compare the demo accounts to the live accounts. Firstly, do not pay for a demo account. Demo accounts should be free as they allow the traders to get a first-hand experience of what it will be like to trade with a broker. A good demo account should be virtually identical to a live account, meaning, correct prices and feeds. Often brokerages manipulate the demo account market to ensure the traders turn over a profit, encouraging the trader to sign on with the broker. You don’t want to be learning and getting confused by a whole new layout or platform when switching over to your live account. The only significant change should be going from virtual funds to real funds when switching from a demo to a live account. BlackBull Markets offers an excellent demo and live trading experience, with an easy to use platform ensuring efficiency.
We hope you have found this useful and should you wish to discuss any of the points above, please do contact our friendly support team at firstname.lastname@example.org
Best of luck with your search,
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Black Bull Group Limited (trading name: BlackBull Markets) is a New Zealand registered and incorporated company (company number: 5463921). We are also registered with the Financial Services Provider Register (number: FSP403326).
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Risk Warning: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money you cannot afford to lose. You should make yourself aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any questions or concerns as to how a loss would affect your lifestyle.
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