Category: Best Brokers

  • Forex Broker – What is it?

    Forex Broker – What is it?

    Forex Broker - What is it?When you decide to trade the forex market, so you’ll need a Forex broker.

    By Guy Avtalyon

    But what is a Forex broker?

    Let us explain this. That is a company that monitors and advises investors on current conditions in the forex market including conversion rates. Forex brokers may also provide a trading platform and other brokerage services for traders.

    A forex broker is a company that buys and sells currencies on behalf of retail traders. It usually does through a forex trading platform. Like stockbrokers, they charge a fee in order to execute orders placed by their clients. It is regularly in the form of a spread instead of commission.

    But, unlike stockbrokers, forex brokers place trades in the OTC market instead of on an exchange.

    What is the forex broker’s role

    A forex broker is a mediator that executes the transaction orders on behalf of his client as we said.

    They are called intermediaries. Their job is to intercede between the market, on one side, and investors and traders on the other.

    What is the forex broker’s tasks?

    – to provide customers the market prices of the various financial instruments, through trading platforms or in some cases, by phone.
    – The broker has to find a counterparty in order to satisfy the transaction request received from the client.
    – Also, the forex broker has to send to the market the trading orders executed by his clients.
    – Such a forex broker has to return information about the order outcome if it has been executed or rejected.
    – Some forex brokers also act as governing agents. They calculate and pay taxes for the trader on the realized capital gains.

    The forex broker operates as a middleman between the trader and the market.

    In simple words, in order to find a buyer or a seller of currencies, the trader can go to a broker and find either a respective seller or a respective buyer.

    Here you can find respective broker>>>>

    Forex broker is not just the middleman between traders and another buyer or seller. Forex broker is also the middleman between traders. That is called a “liquidity provider”.

    How to interact with a forex broker?

    In its original sense, a forex broker is someone that you phoned in order to buy or sell currencies. But, the development of the Internet allows you to communicate with a broker through a trading platform or trading software.

    If you are looking for a trustworthy, regulated broker, please check out this>>>

    Retail Forex

    A key concept for modern individual traders is retail forex. Traditionally, foreign exchange has been traded on the interbank market by larger clients such as banks and multinational corporations. They need to trade currencies for business purposes and hedging against international currency risks.

    But, retail forex is the forex that is traded through dealers, often by smaller or individual investors. These firms are also known by the term “retail aggregators.” This became popular in the late 1990s with the development of internet-based financial trading. That allows smaller traders to get into markets that were before confined to businesses and financial institutions.

    A retail forex broker allows traders to set up an account with a limited amount of assets and let them trade online through trading platforms.

    If you are looking for a trustworthy platform, check out this >>>

    Most trading is done through the spot currency market.

    Forex trading is popular among individual traders because brokers have offered them the chance to trade with margin accounts.

    These allow traders to borrow capital to make a trade and multiply the principal. They use it to trade by large amounts, up to 50 times their initial funds.

    The brokerage industry means extreme competitiveness.

    Even among those companies, the competition is extremely high. Picking the right type of brokerage house is a difficult choice.

    How about the things retail traders need to know before deciding the broker to use? What are the conditions that make a good broker and what would be a perfect Forex broker?

    Find HERE>>> 

    Honestly, choosing a Forex broker should be a simple process. Traders should not end up spending a lot of time looking for the right broker.  Forex brokers offer an essential service for markets, especially for retail forex traders.

    With an internet connection and a computer or mobile phone, traders can now open an account and trade in a market. Brokers also offer services that can be valuable in assisting traders to understand price movements and potentially make profits.

    Don’t waste your money!

  • The Best Broker and How To Choose?

    The Best Broker and How To Choose?

    forex broker
    Choosing the best broker seems like a simple process. But in reality, it can be a nightmare.

    By Guy Avtalyon

    Finding the best broker is not easy. Not at all!!! I’ll give you seven tips on how to do that.

    In the very beginning, you want to be sure that the broker has the right credentials, understands the market, has similar wealth-building beliefs as you do. Trust me.

    What is the main point  when you have to choose the best broker

    a) make sure a broker offers the services and features you most need,
    b) don’t pay extra for services and features you don’t need or want.

    The best approach is to make a list of facilities you want from your broker. 

    Tips and tricks for choosing the best broker

    1. Minimum Trades  – Check if there is a clause about minimum trades that you will have to do as well as the penalty for not complying with the requirement. There are actually brokers who have no minimum requirement or require only a few hundred dollars.
    2. Costs – Consider the commissions and other fees that broking companies charge.  Brokers typically have a wide assortment of fees for cost per trade. That’s the holy grail of the online brokerage universe.
    3. Customer service – Look for customer reviews online or on specialized forums, please. Make sure that the broker offers such support and it’s available during more than just “regular business hours”. Check if it’s available in various forms: email support and live chat can be more convenient contact methods than a direct phone.
    4. Investment options – Some ‘’full-service’’ brokers may not offer products of all asset management companies or AMCs. A good broker is one that offers you the ability to invest in a large number of assets: stocks, bonds, mutual funds, exchange-traded funds (ETFs), real estate investment trusts.  You will need a broker who can provide you with all of the possibilities if you want to spread your investment wings.
    5. Investment Advice – The problem may arise if you are not DIY (do it yourself) type. Some brokers will offer limited investment advice, while others will provide a full investment advisory service, usually for a small fee, some will charge a higher fee if you need broker assistance. You have to explore what suits you best.
    6.  Asset Allocation Guidance – Especially for new investors Asset allocation is one of the more challenging investment functions. It can be complicated enough to decide on initial asset allocation, but even more, involved to maintain that allocation going forward. Periodic rebalancing is not the easiest of tasks if it must be done manually and will be necessary to do from time to time. Most robo advisor services will handle asset allocation and automatic rebalancing as part of their account management fee. If you’re looking for “hands-off” investing, robo advisors could be the best option for you. You have to find out if the broker offers this service and if there is an additional charge.
    7. Types of Retirement Accounts  – It’s best to confirm this at the very beginning that the broker offers multiple types of retirement accounts to invest in. And even if you want only a regular investment account right now, you may decide to open a custodial account for one of your children in the future. If you have confirmed that these options are existing before you first sign-on, you can be relaxed. I know that most investors like to have all of their various accounts with a single broker, particularly if they are happy with the service.

    What type of trader do you want to be?

    Are you an active trader or buy-and-hold investor? Whatever you are, it will affect your choice of broker. If you are a buy-and-hold investor and invest in index funds, making a few trades per year, fund selection may be more important to you than low transaction fees.

    You have to determine if you’re an investor which means long term investing, or active trader, short term trading. If you are still learning how to trade stocks online, you shouldn’t rush into choosing a broker. Everyone eventually develops their own trading style.

    Online stock brokers offer a wide array of features and fees. Choosing a broker with a good reputation is worth it. Someone with the features you really need and a reasonable fee structure. Don’t let yourself be attracted by a platform with the bells and whistles. Especially when you are at the beginning.

    Readers, what do you look for in the right investment broker? Let me know and share it with others.

     



  • 10 Things You Need To Know Before Choosing A Broker

    10 Things You Need To Know Before Choosing A Broker

    10 Things You Need To Know Before Choosing A Broker
    One of the biggest decisions you’ll have to make is which exchange or broker to deposit funds with.

    By Guy Avtalyon

    What do you need to know before choosing a broker? A decision to choose the broker may be a nightmare for traders. If you read about them on various forums or read paid bad reviews, you can really find yourself stuck in that. One of the biggest decisions you’ll have to make is which exchange or broker to deposit funds with.

    If you’re looking to buy a cryptocurrency in an ICO, the advice is to read the company’s prospectus for this information:

    a) Who owns the company? A recognizable and popular owner could be a positive sign.

    b) Are there other major investors who are investing in it? It’s a good indication if other famous investors want to invest in the currency.

    c) Will you own a stake in the company or just currency or tokens? This distinction is important. Holding a stake means you’ll get to share in its earnings, while buying tokens simply means you’re allowed to use them, for example, like chips in a casino.

    d) Is the currency already developed, or is the company looking to raise money to develop it? The further along with the product, the less risky it is.

    What things you need to know before choosing a broker

    Before you jump in all of this you have to check:

    1) Demo Account: Before risking your own money, it is absolutely crucial you trade with a demo account. You need to know before choosing a broker if it offers a demo account Demo accounts are the best option a trader has to test a trading strategy and evaluate how they are as a trader. It might not be perfect, but it is better than the alternative of jumping straight into the deep water.

    2) Accessibility: Before you sign a contract with a  broker, test out their customer service and support. Are they accessible? If you have a problem whether it is technical or general, is there someone there whose only job is to provide you better service?

    3) Legitimacy: It is important to check on the broker’s website for any additional financial information and statistics about the brokerage. If it is not there, check on the parent company’s site, and if you cannot locate this information, this should raise a red flag. This is information you need to know before choosing a broker. 

    Also, you can CHECK HERE

    4) Resources: It is important to ensure that the platform competes with the market standard of including real-time charts, integrated technical analysis tools, live news, and updated market data, and sometimes support for trading systems.

    5) Foundation: The number of online brokers is expanding fast, so you’ll need to check and double-check before signing anything. Particularly if it involves very large amounts of money. It is therefore important to investigate who and what is behind the brokerage and how strong its foundations are.

    6) Competitive Spreads: After determining the integrity of the online broker, now you need to evaluate the quality of their offering.  It is of absolute importance to find a broker with the smallest spreads. That will warrant maximum profit for you.

    What else is important when picking a broker?

    7) Leverage Flexibility: is one of the most important advantages of the market. But large leverage is not always the top option for all traders. The larger the leverage involves the higher risk. So if you have limited money, higher leverage will increase your opportunities, that’s sure. On the other hand, if money isn’t a problem, lower leverage is better to pick.

    8) Account Types: Alike with the leverage, the type of account you choose will depend on your needs in trading. When choosing a broker, it is important it offers several types of trading accounts.

    9) Lenient Margin Rules: If a brokerage has strict margin rules, you might encounter a sharp decline in one of your positions. So, before it gets a chance to recover and make you some profits,  your broker can make a margin call. That can liquidate your account. This will result in great losses for you. It is important to know that broker’s margin rules are not too severe.

    10) Emotionless Trading Features: You need to trade in a cold and calculated way so as not to let your emotion get the best of you. One of the guiding principles in successful trading is “Leave emotion out”. This is done by setting a broker’s trading platform and under no circumstances deviating from them. The main advice is don’t rush into it, check your broker against the above criteria, establish a trading strategy, examine the market using technical and fundamental analysis.

    And experience of other traders too.