In trading, of course, you must have knowledge, so that in trading profit and profit continues. Here we will discuss Basic Science before trading. we discuss one by one:
1. Choosing the Best and Trusted Broker
Now the competition in the Forex market can be said to be very tight. Therefore, it may be difficult to choose the best Forex Broker. Just knowing Forex trading or strategy is not enough to be able to successfully profit from Forex investment.
Before choosing the right Forex broker for you, you need to know a few things to consider. That way, it will be easier for you to find the best Forex broker.
To be able to choose the best Forex broker, the author will share some things that you need to pay attention to in choosing a Forex trading broker.
#1 Demo Account
Forex brokers should provide demo accounts for novice robot trade to try. This demo account is very useful to know the real trading situation and conditions without investing a large amount or risk before starting Forex trading on a regular account.
Having a demo account can help you feel more confident to get comfortable in Forex trading. After that, there will be various instructions on how to use the broker .
If you really feel confident with the broker then you can open a real or genuine account to make real trades.
#2 Recommended Spread
What are spreads? The spread is the difference between the selling price and the buy price on the currency the Forex broker is offering. If you want to make a buy transaction then you can buy it for ask . Meanwhile, to sell it can be at a bid price .
If the spread is a lot, it indicates that the broker can generate more profit. However, if the spread is small, you can save more money.
If you open a clear position then you will be subject to a spread and it will be an advantage for the Forex broker if there is a price difference. These spreads can be the best Forex broker that can benefit you.
You are strongly advised to choose the best quality or trusted Forex broker who already has a clear legal agency or has regulations.
It would be better if you choose the best Forex broker in the world with NFA regulations from the United States or FCA UK from the UK.
Why is that? Because the two regulations are very clear and for brokers who have received these regulations, the broker has passed strict requirements.
Of course, choosing a safe broker is very necessary to help you provide a sense of security when you trade. One of them is EXNESS because it already has FCA UK regulations and has many customers from all over the world who believe it.
#4 Forex Trading Tools
Every Forex broker should provide a comprehensive toolkit. For example, charting currency prices in real time, tools for technical analysis , commentary on basic and economic analysis .
In other words, you need these tools to trade Forex well.
#5 Stop Order or Limit
With the intense competition between Forex brokers, with various offers and guarantees on every stop and limit order, you are required to enter into the minute details all the time.
The goal is to find out the extent of their assurance of certainty. Is it about news NFP so you are not wrong in choosing the best Forex broker in the world or in Indonesia.
#6 Help Service
Of course the best Forex brokers are those who can also provide support and clear doubts whenever you need a broker system.
It would be better if you search for a system that you can easily get through multiple accesses. Some of them are through telephone access, helpdesk support , forums, and email.
Security is a mandatory criterion that must be owned by the Forex broker that you will choose later. Of course you don’t want to give relatively large amounts of money to random people, right.
Therefore, you have to make sure and check the Forex broker with the legal entity in question.
Across the world there are agencies that have registered law relating to the legal status or absence of Forex broker anyway . Some of the relevant legal entities and their countries are as follows.
- Indonesia (BAPPEBTI, BBJ and KBI)
- United States (NFA and CFTC)
- UK (CPA and FCA)
- Switzerland (SFBC)
- Germany (BaFIN)
- France (AMF)
So, before you give your money to a Forex broker, make sure that the broker is registered with the legal entity in question.
#8 Transaction Fee
Any type of trader will definitely be charged a transaction rate from the difference in the price of buying and selling transactions or a commission for each transaction. That way, transaction fees can be something you need to consider so that the amount of fees you incur are not too large.
However, there comes a time when you don’t need to pay attention to lower transaction rates for those of you who prioritize the quality and reliability of the Forex broker.
If you need a low spread fee for this type of trading then you need to consider various options such as a balance of low transaction rates and security.
#9 Withdrawal and Deposit
As the best Forex broker, of course, you will be able to make deposits and withdrawals of funds easily. Forex brokers should not complicate this process.
In online Forex trading, most of the trading activities are carried out through the trading platform at the Forex broker that you have provided previously.
You need to know what the Forex trading platform provides.
Does the platform provide news feeds or economic news, understandable price charts or charting tools , as well as any other information you need to help you trade Forex.
#11 Order Execution or Order Fulfillment
All Forex brokers must fulfill orders from their clients at the right price. When the Forex market is in normal conditions, Forex brokers must fulfill orders from customers, or at least approach when customers see market prices on their computers by pressing the buy or sell button.
And also to note is, what is the level of leverage of the broker. Some forex brokers offer high leverage , some offer lower leverage levels.