A brokerage company for a trader or investor in financial markets is a partner, the quality of which largely determines the result. You can choose a random company, or you can download fbs apk and not think about bad consequences. We will talk in more detail about how to choose a broker and not make a mistake.
The task that brokerage companies perform is to bring clients’ transactions to the interbank market and ensure their execution. Modern Internet trading is the opening of transactions in a few clicks. In order for the order to be executed on time and at a given price, the brokerage company needs to take a number of steps.
When it comes to how to choose a broker, there are subjective and objective criteria.
Subjective refers to the market that a trader wants to enter. Depending on the direction of activity, appropriate companies with the necessary expertise in this matter are needed.
Having decided on the market and the list of companies that provide access to it, it is worth exploring them according to the following parameters:
- Is the broker licensed, and who is its regulator? This is one of the guarantees that the choice of a broker will be of high quality, and the company will be conscientious.
- What is the speed of order execution, are there any slippages, rollovers and other technical obstacles that will not allow to accurately implement the trading strategy.
- How long this company has been operating in the financial services market.
If the question is which broker to choose, preference should be given to those who have a long work experience.
What else matters?
In addition to the reliability and integrity of the broker, you should pay attention to its trading conditions and the list of related services.
For example, for traders who earn intraday, low spreads or small commissions for opening transactions are important. Whereas investment strategies involve a few positions, brokers are needed here who do not have swaps for postponing open transactions for a day.
Investors who prefer fiduciary management can look for PAMM accounts or other services for copying trades with a broker. The presence of the company’s investment products makes it attractive to those who are looking for profitable ways to invest with minimal time.
What is the danger of choosing the wrong broker?
Experienced traders who have spent several years in the market and changed not a single partner can tell many sad stories of dealing with unscrupulous companies. They empirically deduced what questions to ask and what to look for when choosing a broker to open an account.
It is important for novice traders to know the criteria that give an understanding of how to choose a good broker. And what is fraught with the wrong choice? Basically, the result is always the same – the loss of money instead of the expected profit.