Trading can be equally as risky as it is rewarding, and your job is to minimize the risk to improve your opportunities.
Most people will tell you that the most important risk-avoiding factor is knowledge, and we’re not going to argue that. Knowledge is extremely important and the more you know, the better you will perform.
That being said, there is one thing that is even more important and the only thing that can truly help you avoid a complete disaster – finding a great broker. In fact, no trading knowledge in the world can protect you from an untrustworthy broker. And if you lose your money or personal information due to a safety issue, there is no way to get it back.
Also, without having access to a safe and reliable broker that provides all the tools you need to trade efficiently, you won’t have a chance to make it. Luckily, finding a good broker is easier than you might think, and we’ll guide you through the process below.
How To Find a Good Trading Broker
Generally speaking, there are two ways to find a good broker. You can either get help from industry professionals that have insight into the business or you can do the work on your own.
If you want to save time and get started trading as soon as possible, we suggest you pick one of the most trusted brokers. BullMarketz is offering an excellent tool to help you make your choice. They have years of trading experience and have tested all of the leading brokers out there as well as many of the untrustworthy services as well.
That being said, it’s always good to know what to look for in a broker in case you want to do the research on your own.
What To Look For In a Broker
1. Safety – Regulation and Certification
There are a few things that separate a great broker from a bad one, but the main one is safety. Therefore, the first thing you need to check when evaluating a broker is their licenses and which authority is in charge of regulating them.
In terms of trading licenses for forex and CFD brokers, there are only a handful of trustworthy services providing them. The Cyprus Security and Exchange Commission (CySEC), as well as the Financial Conduct Authority (FCA) in the UK, are generally considered the leading ones. In other words, a broker with a license from either of those authorities can be trusted.
2. Assets – Market Availability
After you’ve assured yourself that the broker you’ve chosen is trustworthy and safe, you want to take a look at their selection of assets. Are the markets you’re planning to trade on available?
Many brokers pick certain markets as their main ones, and therefore a broker that’s good for forex traders might not be the best fit for someone looking to trade commodities or cryptocurrencies.
At this point, you also want to check fees and costs to ensure that the broker isn’t taking too much of your money for each trade.
3. Tools – Platforms, Charts, and Features
Lastly, before making a final decision, you have to make sure that all the tools you need are available and that you feel comfortable using the provided software. Are you planning to trade a lot on your smartphone? You also need to run a few tests on their mobile platform.
In our opinion, the best way of doing this is to open a demo account that allows you to use the platform and trade with virtual money.
By now, we hope you understand the importance of finding a good broker that you can trust.
As mentioned, you can either save the time and effort by picking a broker that has been recommended by trading professionals, or you can do the research on your own. Both ways work equally as well as long as you know what to look out for.