Forex trading starts in the far East at 12:00 am Monday morning and continues constantly, 24 hours a day until the last Western time zone hits 12:00 am Saturday morning. People have to work around the clock and have faith in the people they leave watching the accounts during the requisite down time. Forex is fast and it is volatile and time away can result in great loss. Forex traders deal with the daily stress of depending on such an unstable source of income because the possibility of great earnings is just as constant as the threat of imminent loss.
Traders need Brokers
One of the most important relationships traders have to form to succeed is with their broker or brokers. Brokers and brokerage firms help traders stay on top of the market, which is necessary with the time zone differences and global scale. Traders can not succeed without brokers and brokers can’t succeed without traders and clients. Finding the right brokers with whom to set up accounts can be tricky for both new and experienced traders. The wrong broker can seriously cut a trader’s profits and ruin their portfolio and maybe their bank account or reputation. It is imperative to There are many factors to look at when making the important decision about whether or not to invest with a certain broker.
Factors to Compare
The most obvious factors and first to nail down are language, location and currency. A trader has to be able to get in touch with the broker during their waking and working hours. They need to be able to communicate freely with their broker in a language with whom they are both comfortable. They need to be able to easily mail or courier important documents not available online. And they must deal with the currencies the trader wants to work with.
Beyond those logical traits, the trader needs to know the spread (the difference between the bid and the asking price) that the broker works with. It is how the broker makes money, they do not make commission from forex trades. Knowing what trading platform and signals the brokerage uses is helpful in making sure their information will be compatible. Also, the trader wants to be able to see exactly what the broker sees and be just as informed at all times when making big money decisions.
The trader will want to see if there are bonuses or cashback offerings that could entice them to create an account. And they also need to look past any offers like that to make sure they are compatible with the broker beyond the fast money. Again, with the time differences working within forex, if using a brokerage abroad, a trader wants to know that even if the broker isn’t available for certain hours, that there is some support traders can use 24 hours a day, or the service could be useless or at the least very difficult to use.
One of the best ways to find the right broker for a trader is to read reviews of people doing the same thing they are, or what they want to do. There are reviews of brokerages and individual brokers everywhere online and many reviews have contact information if a trader needs more data on a certain person or organization. Once they find a well reviewed person who deals on a compatible platform, works with the desired currencies and has sufficient support with reasonable spreads, it helps to talk to them personally as well. Even if it’s the only phone call they ever have, it can be decisive to actually speak to the broker and get a feel for them and how they would work together. Brokers play a pivotal role in forex and in the trader’s personal gains or losses, so exhaustive research and selective decision-making could secure their success for the better.