7 tips by Seven Star FX with various options to choose from the online FOREX brokers who can keep your investment safe. Selecting an ideal broker is often the same as choosing an alternative for investment. It deserves the accurate information and the ability to provide the investors best trading experience and worthwhile transparency in withdrawals and payments. Our Research Team enables some of the possible reasons that help you to choose a broker
Majority of online FOREX brokers have an initial deposit to start an account. It typically ranges between $500 to $1000 as minimum balance to start with the online Forex trading.
Mostly what the brokers promise, they don’t do. Hence, it’s very tough to withdraw your hard earned money. The main reason for such things is that some of the FOREX brokers charge hidden fees while making a withdrawal stating as transaction charges. They even restrict you to withdraw money if your balance drops lower than the minimum deposit. Majorly the brokers provide the cash and check payment but it requires a huge amount of money from the account as a minimum balance. It is advisable for you to glance through all the rules and regulations from the brokers.
Some of the high net worth investors like to open a margin account, but they don’t open it, as the margin accounts have a higher minimum balance requirements than standard deposit accounts. The most important thing is that the FX brokers take high level of interest when you place a trade on margin.
Almost all the brokers have some kind of similar fees structure. Majority of the brokers have high and complicated fee structure. it is very hard for the layman investor to sort the hidden fees. Which is mostly seen in the broker, those have a high level of fee structure selling point for client’s enticement. If you are genuinely looking for a transparent STP broker, then you most likely to look for the best interests as the fees structure complements your investing style. If the rates seem too good, then again, you need to glance through the trade agreement and fee structure.
There are several kind of trends in the market, they are either bear or bull. However, before you start, you need to quantify your own risk skills. If you are an investor then there are basically two types of skills and investing values which you need to refer and predict your trading pattern. You need to ask:
Once you detect the investing pattern, it will help you to follow the trend lines that also help the brokers to predict what kind of investment pattern the clients have. If you are relatively passive investor, then you might read the terms and conditions minutely.
Well, it is commonly seen as most of the brokers often lure you with attractive bonus schemes, trader’s diary, often it is not the case. For many or most of the investors, it is not suitable as it is very risky and have hidden costs. The offers are not at all suitable to risk averse investors as almost all the broker charges either high speeds or have hidden cost, hence it is advisable not to tempt over the offer seems to be very attractive.
Some brokers are very smart, they provide everything like; easy deposits – withdrawals, no hidden costs. It’s almost everything what the clients need, but what they don’t disclose is the spread rates. Many of the brokers have a very high spreads and hence it almost dissatisfy the traders up-to the level that they think that Forex industry is horrible or cheat but in fact it is not so. Hence, it is very important for a trader to choose the transparent FX broker.
Conclusion: Choose a broker which is the best for you and your risk management skills. Don’t invest, just because you heard somewhere or by the recommendation of your friend or by other traders. Be yourself and ask everything what you require before you start trading.