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All transactions made on the foreign exchange market (Forex) are made through a broker. Brokers act as an intermediary between the trader and the Forex market because the trader cannot directly access the Forex market. Therefore, the success of your strategi trading largely depends on the broker and each broker determines its trading conditions, the list of available instruments, possible bonuses, and several other criteria that impact the results of the trader. This is why it is so important for beginners to have a good understanding of criteria and conditions they should use when choosing a Forex broker.
How to choose a Forex broker for beginners?
Each Forex broker offers different conditions. There are several types of conditions, but some are more important than others and must be taken into account when a trader takes his first steps into the world of Forex trading.
Choosing the right Forex broker – the basics for beginners
If you are new to trading, you should choose a broker with certain characteristics
Mini lot
The first thing you need to pay attention to when choosing a forex broker is whether the broker can work with a minimum lot. This corresponds to 0.01 lots or 1000 units. This is the minimum amount of a Forex transaction. Not all forex brokers offer this type of lot and can only trade mini lots (0.1 lots or 10,000 units).
Having minimal lot allows for good risk management. Indeed, when you first start working in Forex, the first deposit is often small. Therefore, the size of your positions must match the size of your trading account. For example, when trading on EUR/USD, the pip value is $1 with a mini lot and $0.1 with a micro lot.
Deposit amount
The vast majority of brokers offer to open a trading account from a few hundred euros, but some set a higher ceiling. Therefore, it is important to look at minimal deposit fbs in accordance with the means at your disposal for trading. However, be careful, even if you can open a trading account with some forex brokers from 50 euros, your deposit should not be too low.
"Reactive" support
Good support is already speaking in your language. If your broker has no one who speaks your language or speaks very badly, this makes it very difficult to understand. When you are new to Forex, you will have many questions about how Forex works and about your trading account. Your broker must always be present to answer your questions!
The good support is also support, which can be contacted by phone. First of all, don't choose a forex broker who can only be contacted via email or live chat. It is much less reactive and is no guarantee of seriousness when it comes to the quality of a broker.
Quality platform
Don't choose a trading platform just because it looks attractive to you. A good platform is intuitive, responsive, and complete.
Placing an order should be easy (in a few clicks), but above all the platform must have a good quality of execution of your orders. There should be no slippage (waiting time between the moment you press it and the moment your order is filled). If you notice repeated delays on your demo account, change your broker!
It is also necessary that your broker's trading platform allows you to execute all your technical charts and that it has the main technical indicators. This may be an element you don't take into account at first, but it's important to have good tools at your disposal nonetheless.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.