Choosing a broker is the second important question for any trader, after the first one – whether to enter the market at all – has received a positive answer. It is assumed that at this point a potential financial tycoon is already at least in general terms familiar with the specifics of the future field of activity and with the corresponding terminology.
For convenience, there are so-called broker ratings. Having delved into the topic, the newcomer is surprised to learn that such ratings are slightly less numerous than the brokers themselves, and, in addition, in many of them the TOP-10 options can differ significantly. Very often, a stupor becomes a reaction to this, and as a result, the broker is chosen either simply at random, or based on some subjective factors. It is probably not worth recalling the perniciousness of such a decision again.
Bytrend.com (bytrend.com) lead analyst Marius Zielinsky believes that, as with any complex problem, an analytical approach and structuring of available information will help here – in other words, it is necessary to highlight important factors from the sea of available information. First of all, it is worthwhile to understand that many ratings are simply platforms for making money. Each place has its own price list, and the package of services may include regular positive growth in the voting and a certain number of regularly appearing positive reviews. Unfortunately, everything can be bought, if not for big money, then for very big money – for sure. Hence the conclusion – in any rating, it is not so much the broker’s specific position that matters, but the section about the company where you can find a lot of useful information. Well, client’s reviews, of course, but about them a little further.
The main point that ByTrend experts recommend to pay attention to is the terms of trade. Brokers earn on spreads (the difference between the purchase and sale price of an asset if someone has forgotten), therefore it is preferable to deal with the companies offering minimal spreads on key currency pairs. This is especially relevant for those who decide to do scalping, because when choosing this strategy, the spreads will be the main condition affecting income.
Next, we estimate the volume of trade, since the currency is not sold in units but in a certain volume – a lot. Again, the smaller the lot, the cheaper it will be to enter the game and open a position. The risk will be less, but the profit, respectively, too. It is clear that at the initial stage, a low risk level is much more important for a trader, this allows him to feel more comfortable in the market. The minimum volume indicator is 0.01 lots, however, not all of these conditions offer. For example, at ByTrend you can trade such volumes using the Mini plan.
The leverage is directly related to this item. The larger it is, the more scale it is possible to act on the exchange, while increasing potential profit and, as usual, the risk of losses. It all depends on the preferences and nature of the trader.
Other important factors are the number of tools for trading and the possibility of training. The latter should not be neglected and it is better to use the opportunities provided in full. As a rule, such training is free, and knowledge and practical advice will do good service more than once.
Finally about clients’ reviews. As already mentioned, it is likely that some of them are written for advertising purposes. It is better to pay attention to those where there is less “water”, i.e. any specific details are described. In addition, in most cases, it is difficult to find a trader completely satisfied with his broker, therefore, clients’ reviews, which indicate both positive aspects and inconveniences, deserve more trust.