If you google “Best forex broker” you will find approximately 27 million links. If you search “Forex broker does not pay” you get 67 million answers.
Trading is a risky venture because results much depend on market situation and often are hard to predict. There are lots of other obstacles which however may be managed by a trader. It is not enough to deposit and profit, you must be able to withdraw your profits. And here is where some rogue brokers come into play.
“Rogue’ vs “Fair” broker – 5 advises to make a choice
№ 1. Reputation matters!
Reviews matter much ….if you know they are genuine. Unfortunately there is no such guarantee, thus you need to make your own research. Such platforms as www.forexpeacearmy.com and www.trustpilot.com help a lot. Only positive and all time admiring posts guarantee their face nature. The most important thing while reading reviews is to figure out if the broker is ready and willing to solve clients’ problems.
№ 2. Not every license is the same.
What does the fact that a broker has a license say? It means that a Big Brother, a regulator is watching a broker. Shall there be a complaint from a trader it will take care of it help him to solve the problem and even get his money back.
Roughly there are 3 big groups of brokers:
1) Tough guys with serious licenses from the UK, Europe, Australia, Singapore etc.
2) Brokers which obtain easier to receive licenses which allow them to run business easier. Such brokers typically register in Saint Vincent, Belize, British Virgin Island and other offshore territories.
3) Non-licensed players.
First group of brokers follow strict rules set forth by their regulators, second group is lighter regulated and third one is play-as-you-wish companies. It totally does not mean that some brokers are worse than the others by default. Totally not! There are plenty of fair and honest brokers in each group. For example, Tickmill is regulated in the UK and Cyprus, but also holds licenses in Seychelles and South Africa.
№ 3. Hidden terms – read fine print.
When dealing with Forex broker make sure you check details, because they can have unless the greatest impact on your further life. Here you may find special terms to withdraw your money, maximum amount you can withdraw at a time, how you can and cannot trade and when a broker may reject your profits. To make sure you don’t face such “surprise” once you open an account, you better ask all those questions prior to opening account. Login to livechat and ask any question you like. If the company is professionally managed, an answer will arrive fast. For instance, Tickmill support will either clarify your question immediately, or if your question is way complicated, they will reply to you with an email.
№ 4. Test drive – best way to check.
Make small deposit, make one trade and withdraw – those three steps will allow you to test a broker in live environment with very little risk involved and decide if you are making right choice.
№ 5. Covering your costs is a sign of trust.
Whenever you deposit or withdraw money from a broker the bank or ewallet will have their charge – commission. Most broker compensate these fees only when you deposit, whilst withdrawal happens at a cost of a trader. Brokerage companies which plan to be on the market for long deliberately take such costs on them and compensate a trader broth deposit and withdrawal fees. Tickmill is one of them.
There is one magic answer to a trader – there is no such single criteria to decide if the broker is good or not. Best you can do is to do your own research, talk to other traders, test a broker and take final decision only after this.
