Trading activities or trading on the foreign exchange (foreign exchange / forex) continues to increase, especially in the Internet era that allows access for anyone to plunge into the world of trading. Who is not tempted to try their luck in the world of forex trading. With worldwide trading volume now reaching more than US $ 4 trillion per day, liquidity in the forex market is even higher.
Young people with various educational and social backgrounds can take part in forex trading which formerly can only be done by the banking or known as interbank market. Can also do in a conventional way, for example through a money changer but obviously its potential is very limited because there is no leverage facility that allows investors to trade greater than the funds it has.
Unfortunately, the seductive attractiveness of forex trading also invites rogue trading brokers, who try to capitalize on the interest of novice, or even experienced, investors to gain profit in unauthorized ways. In various ways they try to move investors’ money into their pockets, then run away.
Well, because that’s for you who are now interested to achieve unlimited profits in forex trading, must remain vigilant from the point of the predators. Be eligible in choosing a broker. In short, let guns make sure you follow these tips before entrusting your funds to a broker. Remember, sorry always come later.
Tips on Choosing a Trustable Broker
1. Legality Broker
Legality or licensing is the most important thing to be examined by every prospective customer. Obviously we often hear various cases of fraud under the guise of investing or trading that has a lot of casualties, although surprisingly there are always tempted by the lure offered so they forget to check the legality of the business of the party that offers, in this context broker trading.
2. Details about Trading
Now we begin to discuss the technical importance for the next trading activity. Information about trading related details should be obtained by prospective customers as they are closely linked to potential profit and loss and ease of transactions.
There are some basic things to be considered: commissions, spreads (the difference between the selling and buying price), the initial deposit and the ease of funds transfer both on deposit and withdrawal.
For every trading transaction, brokers charge a commission because from here a broker earns revenue to cover its operational costs. So the commission is the cost that must be issued by each customer on each lot (unit) transaction. Surely as a customer you want a broker who only asks for low commissions.
Spread is also associated with the cost and ease when trading, simply the lower the spread the greater the potential revenue that can be achieved by customers.
The initial deposit set by each broker is also different. For standard accounts a minimum of US $ 10,000 but some brokers also facilitate mini or micro accounts.
The ease of traffic of funds at the time of deposit or withdrawal (withdrawal) should also be a concern because sometimes a customer requires funds or profits that have been obtained quickly to meet other needs outside of trading. Fund transfer is getting easier and faster then the better for you.
3. Currency Pairs Provided.
Trading foreign exchange or commodities is always in pairs, for example EUR (euro) with US Dollar (USD) or Gold (XAU) with USD. The more pairs provided by a broker the more choices you have and automatically open up the greater potential for profit.
4. Customer Service. Service is an integral part of a company. The better, friendlier and faster the service to the customers will be more profitable for the customers. One of the services provided by broker trading is educational support, news and market analysis and so on. Also as mentioned above, the ease of fund transfer is part of the service to the customers.
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