You have decided to get into online trading and are now looking for the best broker? This is indeed a decisive step for safe and profitable trading. As scams are unfortunately common on the Internet, you should carefully choose the intermediary to whom you will entrust your money. For this, here are the 10 points to check.
1. Is your Broker Regulated?
The regulation of a broker is the first thing to check. To be authorized to operate, a broker must be regulated by a Regulatory Authority, in particular by the AMF or the FCA. If this is not the case, move on: it is not a reliable broker, it may even be a scam.
To be certain, you can consult the black list of Forex brokers published by the AMF. This regularly updated list identifies brokers who carry out this activity without being authorized to do so. If your broker is there, run away: it's a scam!
To check that your broker is authorized to offer its services in France, you can look for it on the Regafi website. If your broker does not appear there, it is because he is not authorized to practice in France. Again, you should move on.
2. How Does Your Broker Keep Your Funds Safe?
Security of funds is a key issue for online trading. It must therefore be taken into account in your search for the best broker.
For maximum security, your broker's bank accounts must be located in Europe. In addition, these must be segregated accounts, ie a deposit account “separate” from the broker's accounts which therefore does not enter into its balance sheet. In the event of bankruptcy of the broker, the funds of the clients are therefore protected.
3. What Trading Platform Does Your Broker Offer?
In terms of services, the trading platform that your broker makes available to you must be included in your selection criteria.
The most popular trading platform, and one of the best, is MetaTrader 4 (or MT4). It is the ideal tool for beginners as well as for more experienced traders. Robust, reliable and intuitive, it is also particularly well suited to Forex trading.
4. On which Markets can your Broker make you Trade?
Not all online brokers allow you to trade on all stock markets, just as some brokers specialize in particular financial instruments.
Also, if you want to trade on a particular market, whether stocks, indices, commodities, currencies or even crypto-currencies, you must make sure that your broker supports it.
Also note that it is always interesting to trade on several markets in parallel. Whatever the market you are considering, it is therefore preferable to choose a broker offering a wide choice of markets.
5. Does your Broker Allow all Trading Styles?
You should know that all brokers do not necessarily allow all trading styles. For example, some do not allow scalping.
Also, if you plan to practice scalping, day trading or even swing trading, you must ensure that your broker authorizes this style of trading.
6. Does your Broker let you Manage your Leverage?
Although it is possible to trade without leverage, it is very popular with Forex traders. The leverage effect makes it possible to considerably increase your investment capacity without mobilizing more capital.
Very interestingly, leverage is also a risky practice. This is why your broker should let you determine your leverage yourself.
7. Does your Broker have Support in your language?
Even based in another country, a serious broker who offers his services in different countries must provide customer service in language of that country.
Even if you do well in English, it is still easier to express yourself in your mother tongue.
This is particularly important when it comes to placing money or in the event of a dispute.
8. Does your Broker Offer Trading Training?
Although there are many trading training offers on the Internet, it is interesting to follow those of your online broker. These are generally free and developed by professionals.
This is a sign of seriousness on the part of brokers and it is therefore a point not to be overlooked.
9. Does your Broker offer you a Demo Account?
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