How to choose a broker: 5 factors of reliability

25.02.2019

Choice of broker is the most important part of preparing to Forex trading. A lot of inexperienced traders don’t pay much attention to it. But choosing an unreliable broker can lead to loss of funds. If you don’t know how to choose a reliable Forex broker, read this article and find out 5 signs of reliability.

What are the factors of credible broker?

While choosing a company pay attention to such criteria as:

Age

You can trust the broker, which has been working for more than 10 years. Sometimes traders choose younger companies (for example in case of lack of money, because big brokers often require 1000 $ and more minimal deposit). But in this situation they should pay take into account 4 other signs of reliability, which are described further in this article.

License

Trustworthy brokers are all licensed by government of a country they work in. Choose companies that are registered in:

Brokers that are registered in such countries as Cyprus may be unreliable, because offshore license protects only interests of a company, but not of its clients.

Guaranty of refund in case of bankruptcy

In spite of the fact that risks of bankruptcy of 10-year-aged broker are minimal, still they exist. So, you should be sure, that in case of insolvency company will give you full refund.

Absence of an aggressive advertising campaign

Big brokers don’t need much advertising. If you see a commercial of a new company, that promises you perfect terms of cooperation (such as zero spreads and so on), you should be very wary.

Feedback from other traders

It’s better to find feedback on trader forums or communities on social networks. Comments on the advertising page of a broker can be fake. It’s better to avoid companies that have feedback of the unconscionable work.

Conclusions

While choosing a broker pay attention to such factors:

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