AtoZMarkets – Nowadays everyone claims to be the master of Forex trading with so many broker options. So who exactly is a Forex broker? Also, how do know if a broker is trustworthy or not?
In simplest terms, a Forex broker is a company that buys and sells orders according to the trader’s decisions. Although there are now so many different types of Forex Brokers, in theory Forex brokers are supposed to earn money by charging a commission or a mark-up on spread for their services. Although it might sound as a simple action, choosing a reliable Forex broker is indeed probably the most crucial part of your Forex career. You need to do a little bit of research, but your invested time will give you insight into the services that are available, fees charged and the ton on Forex Scams out there.
You can start your Reliable Forex Broker hunt by starting with the following questions:
At AtoZ Markets Broker Directory you will find a list of Forex brokers, which are primarily divided into two categories. – Normal broker listing: this is the list of brokers who are being considered or are being or have been tested by the team of Forex Experts.
– AtoZ Approved: these brokers have been tested by the team of AtoZForex experts on the following categories and only brokers who score 77% and above get to receive the AtoZ Approved badges:
- Execution: We look for the speed of the execution, re-quotes and slippage
- Regulation: We look for how many regulations the broker has
- Deposit process: How long does it take to open an account and fund it
- Withdrawal process: How long does it take for the funds to leave the Forex account and end up in your deposit method
- Customer care: Do you get an account manager or not? And if the support is helpful in times of crisis.
- Spreads: How expensive is it to trade with this specific Forex Broker?
- KYC process: What documents do they require from you?
- Trading Platform: Is the Trading Platform stable?
- Forex Broker Policies: Many Forex Scams are hidden in terms and conditions, so automatically any scam T&C Broker is allowed on AtoZ Forex.
The last point is given the most attention as the rest of the other sections are rather similar for most of the brokers, so we dig deep into this section with the following sub-categories:
A. Available Currency Pairs
Traders should confirm that their selected Forex broker offers the base currency that this trader needs. These are the most common base currencies in Europe: EUR, USD, GBP, CHF, HUF, and RUB.
B- Hidden limitation quotes
Often scam Forex Brokers will have their main scam hidden inside the limitation clauses of their offered T&Cs. These Forex Scams simply disable traders withdrawals as traders have accepted not to withdraw unless they have traded insane amount of lots.
Often transaction costs are ignored or believed that it is only based on the spread. calculated in pips. Although the spread the better the trader stands the chance to stand out, trading costs are scattered accross the board starting with the deposit charges, withdrawal charges and more.
D- Margin Requirement / Leverage
The lower the margin requirement (meaning the higher the leverage), the greater the potential for higher profits and losses. Margin percentages vary from .25% and up. Higher leverage is great when your trade performance is good, not but not so great when you are win red consistently. So be realistic about your leverage and remember that it can be your savior as well as your worst nightmare.
E- Minimum Trading Size Requirement / Minimum lot size
The size of the minimum entry size may differ from broker to broker, spanning from 0.01 to 1 lots and above. A lot consisting of 100,000 units is called a “standard” lot.
F- Rollover / SWAP charges
Although rollover/swap charges are supposed to be determined by the difference between the interest rate of the country of the base currency and the interest rates of the other country. However each broker will now charge the swap according to their needs, especially if they are market makers.
G- Trading hours
Many strategies will generally fail, due to the trading hour as the candlestick analysis will appear differently on different brokers.
H- News trading conditions
I can hear you saying that, I will not be trading news. Fair enough, but what if you have an open entry during a major news and you want to exit that position and your “reliable Forex broker” does not allow you to close your order?! Then this point would also matter for you as well.
This is a short summary of what AtoZ Forex Broker directory as the most detailed Forex Broker Directory of the world. We stand here with you to create a transparent Forex industry.
Is your broker listed in the Directory? If not mention your broker’s name in the comments and we will look into testing them too.