Six indicators of a good broker
Criteria of the reliable broker! I made the list of 6 signs that the company deserves a rank of the reliable broker!
Registration and regulation
The first, and most important indicator of the reliable broker – absence offshore registration. That is, the broker has to be in Switzerland, Europe, America, Australia or England and to have the regulator.
The matter is that the broker can bring transactions to the supplier of liquidity, and can it and not do. According to 80% of traders merge to themselves the account. And it means that it is financially simply not favorable to Forex broker to output transactions of clients further own office. Then you trade in casino which accepts your rates.
But the most interesting that nobody, except the regulator, will be able to check the broker. Such company can write on the website that they have ECN of the account, and upon, without control from the regulator, they are not obliged to output transactions.
But we told only about 80% of traders. As it is not favorable to such scams that you earned money. The scam broker begins to put a spoke in the wheel of those who has really good strategy. Also there are only 5% of those who earn money on the market, bypassing all tricks of offshore office.
Any bonuses
Second criteria of the real broker is lack of lures and bonus systems. Under different pretexts swindlers to you will busily suggest to put money for the account and to promise a gratuitous bonus, or the analytics.
And in reality any adjustable, reliable broker will not give you a bonus at all. Remember, there's no such thing as a free lunch!
And it is illegal to provide the analyst or even trade councils in the normal countries. From this we draw a logical conclusion that if the broker company gives you bonuses and provides different trade recommendations – this company can even be not considered.
There are no restrictions for trade
The third criterion - lack of any restrictions for trade. That is, any strategy has to be allowed. Also there have to be no fixed spread.
Cent account and deposit method
One more of criteria can also call absence of the cent accounts and replenishment by such black electronic payment service providers as WebMoney or Yandex Money.
I think that everything is clear on cent accounts .
Reliable finance companies with the strict regulator accept money, generally only by bank transfer or the cash card. It is connected with the law on money laundering. The regulator watches that financial. establishment accepted money from the checked sources.
Active advertising and Forex ratings
The Internet dazzles with advertsing of broker companies, enticing to itself new clients. But the matter is that the real broker does not allocate the fabulous sums for marketing. One of the widespread advertising courses of scams are the ratings of Forex brokers.
Forex the rating is nothing else as a separate type of business. They have a certain Internet portal on which the person has to come and, in the theory, find for itself the company taking upper berths according to rating. You pay nothing for it at all. But as a task of any business is money - that is paid in this case by unfair brokers for the first places in ratings.
For the first place, generally now pay 5000 dollars a month. What company has excess five pieces of greens a month on promotion?.
Naturally, at that offshore office which earns on trustful clients. The constant stream new people whose merged accounts will pay back expenses of rating is necessary for such companies and to enrich their pockets.
It as financial pyramid. For this reason Forex ratings are absolutely useless information, and, moreover, it can mislead. You can choose that broker who actually is usual scam.
Reliable brokers of the international class do not need too big advertising, and they do not pay various ratings - they take quality, reliability, and reputation.
Not persistence
Only scam" will begin to keep ringing to you each several days and to press on you that you opened quicker at them the account, filled in money and began to trade, understanding that you became interested in cooperation.
The real, reliable Forex broker a maximum will answer your questions. He has no right for you to press, he will not be persuasive. Most likely he only once will call that you got acquainted with it, and you will already contact further it.
Summing up
The first in the ratings of Forex brokers have to be those companies which are international. They have to have an operating regulator, and registration in the countries with the working law.
Johannes Röll
Johannes Röll was born 1978 in Brilon,Germany. Graduated RWTH Aachen University. Over the past ten years he worked as Head of the plastic card team, where he was mainly responsible for the development of the distribution, Head of sales Department and Financial Analyst,where he got experience in planning and support sales figures for branches. For the present he works as freelancer
