The most important factors that you should pay attention to before choosing a Forex company
In order to be able to achieve the desired profits from Forex trading, there are many factors that you must pay attention to, the most important of which is
choosing a suitable Forex company, but before that you must learn everything related to this trade well and understand everything related to it so that you can enter this field because you can either achieve a lot. of profits or lose a large percentage of the money that you will invest (or all of it), so you must know the advantages and risks and how to avoid risks in Forex.
We talked in previous topics about Forex for beginners aboutwhat is Forex?How can gains be achievedin this large financial market? In this topic, we are talking about brokerage companies or Forex companies and what are the most important factors that should be paid attention to when choosing a Forex company.
What is a brokerage company and what is its importance?
Forex brokers or brokerage companies are trading platform companies that allow currency traders to work through them and carry out buying and selling operations for currencies.
Forex companies or trading brokers provide currency traders with access to trading, buying and selling platforms 24 hours a day for 5 days a week.
The most important criteria for choosing a suitable Forex company
Choosing a suitable Forex company is considered one of the most important factors for success in the Forex market, because through the trading platform provided by this broker you will be able to enter the currency market and trade. Note:
Most
trading brokers offer traders (investors) many advantages so that you can make them trade through them. But your choice of the appropriate trading broker depends on the factors that you need as a trader and the features that suit you
1- Is the Forex company licensed by the regulatory bodies (legislated)?
One of the most important factors that you must pay attention to before choosing the appropriate Forex broker for you is whether this company is legitimate and legal or not, and whether it is a company licensed by the regulatory bodies and provides a valid license, or whether
the bodies do not operate. Regulatory oversight to protect investors’ money from fraud carried out by brokerage companies and regulatory bodies are governmental organizations with
legislation. The investor feels protected and safe towards the brokerage company
when problems or fraud occur on the part of the Forex company. You can resort to the regulatory bodies to which that broker is affiliated until the body The regulatory body is required to take the necessary measures against this broker.
Every brokerage company provides information about the regulatory body through which it was licensed. You must ensure that this company is actually licensed in this regulatory body by entering the regulatory body and searching for the company’s registration number.
Note:
The legislative system varies from one country to another. Another country, but in general, Germany and the United Kingdom have the most stringent legislative systems. The most
important administrative oversight bodies in the world
FCA
: The British Financial Conduct Authority, which aims to ensure the integrity of transactions in the marketsCFTC
: A financial body affiliated with the US Congress that works to regulate work in the financial markets and OversightNFA
: an independent, non-governmental body that sets and enforces laws to protect consumersASIC
: an Australian government regulatorFMA: a New Zealand government regulator
2- The age of the brokerage company
. The length of time spent by the Forex company or online trading broker is also an important factor in verifying the seriousness of this broker in its work and gives indications of the legality and credibility of this broker.
3- The reputation of the Forex company.
What do traders say about this broker?
Is there responsive technical support?Is this broker honest?How long does it take to transfer money to your account?When withdrawing money, do traders face problems? Does this broker solve them and respond to complaints submitted by traders?All of these questions you should pay attention to and know what traders say about this broker through which you seek to work.
You will be able to find out everything traders say by searching for this. Online broker
4- The trading platform provided by this broker.
Is the trading platform provided by this broker easy to use or not?The trading platform is the one on which you will spend a lot of time trading. This platform must be simple and easy to use and not have any complexity or difficulty so that you can work on it.
* This platform must be characterized by the speed of executing orders so that you can complete the deal before the price changes and stop the loss in some cases. *
This platform must be characterized by stability and speed of work
. * Is the trading program available on charts or not?
* Is the trading platform available on all systems or not? (Phone, Windows, Mac, etc.)
5- Is there an agent with the company or not (to support clients)?
This agent exists to market the company. This agent provides news, economic analysis, and training courses for traders.
* This agent has no input into anything related to clients’ trading.
He believes that The presence of an agent for the company guarantees the trader assistance when any problems arise.
6- The leverage and margin policy of the Forex company.
Before dealing with the brokerage company, you must familiarize yourself with
everything related to the leverage and marginreserved by the company because this usually affects the trading operations that you carry out.When choosing your Forex broker, avoid companies that offer exaggerated financial leverage because it makes this broker a source of doubts and questions. Also, the use of financial leverage leads to an increase in the percentage of risks to which your money may be exposed. Note
that
some Forex brokers offer financial leverage that varies from one pair to another. Of currencies, so you must know all those details and pay attention to them well before choosing your trading broker.
7- Currency pairs offered by the Forex company.
Large brokerage companies usually offer about 25 currency pairs or more, and some other companies offer several hundred pairs that you can trade on. Therefore,
when choosing a Forex company,
make sure that the currency pairs that you want to trade are provided by the brokerage company.
8- Price differences (spread)
The price difference or spread: It is the difference between the selling price and the buying price. The selling price is usually less than the buying price.
It is necessary to Know the price differences offered by the brokerage company before joining it and whether these differences are suitable for you or not.
There are
3 typesof price differences1- Fixed spreads: they remain fixed no matter how the price changes (usually high).
Fixed spreads are considered the best
2- Variable spreads: they change during Price volatility (usually medium)
3 – almost zero: In this case, the Forex company imposes what is called the currency.
Note
: You may find some trading brokers offering low price differences in a way that raises doubts, so do not be attracted to those companies before you learn everything related to them and whether they charge commissions or not. Not on deals
Learn about the types of accounts used in Forex companies
9 – Commissions:
Although most Forex companies have stopped charging commissions on trades, some brokerage companies still impose commissions on trades, so before choosing your trading broker, find out what his commission is and how much it is.
Traders always prefer Forex brokers that do not add commissions to trades.
10- Interest-free accounts (Islamic accounts)
It is necessary to end all trades that you have entered into before 24 hours have passed since they were opened if the contract that you are trading has been more than 24 hours old. Without completing the deal, the deal is rolled over and interest is paid to the bank on that deal in order to leave the money for another day. These interest rates are considered a form of usury. Therefore, this problem was solved through Islamic trading accounts,
which are accounts free of interest in any form.
Other things you can pay attention to when choosing Forex Broker
11 – Analysis
Some Forex companies provide analysis, economic news, and expert opinions, which help you predict prices and choose the appropriate time to buy and sell, but if you want to trade on your own without using news or analysis, you can choose any trading broker you want
12- Additions Provided by some brokers,
some Forex companies offer many additions and bonuses to motivate traders to trade through them. These additions may be in the form of
* a registration bonus
* a trading
* a deposit bonus
* free educational courses
* bonuses for deposits and others.
This topic was to explain the most important factors that you should pay attention to before choosing your Forex broker.
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