About BrokerRole Of A Broker In Forex Trading
How can you become a good trader with a goal of earning consistent profits without having a trusted broker that executes your trades, as well as provide mentorship trainings for career development?
The choice of a broker is one of the most critical choices you might have to take when you decide to take the plunge into the world offorex trading. It is essential to know the roles of a broker and how important the broker’s trading platform is to your success in Forex.
With the advent of Binary Options which is a more exciting type of trading, especially for budding traders, the growth of brokers’ market and the competition between them has only become fierce.
Role of A Broker
The broker is literally your gateway to winning or losing with Forex and as mentioned earlier, making the right choice is important.
It is an institution you entrust yourmoney and the entityresponsible for carrying out your trading operation through its web-based platform.
Furthermore a Forex broker is an entity with a team that provides you with the services of trading assistance and support to actually help you evolve as a trader.
The broker plays the role of a coach, guide and mentor for the traders who depend on their trading platforms to see the light of day in Forex.
While the entire idea of choosing the best broker might look cumbersome, it is easier to filter out the best in the business based on a few critical factors like Payouts, minimum deposits, trading tools, customer service and so on (we will see that later on).
This is essentially facilitated with the help of trading platforms and demo accounts which helps you as a trader to understand the nuances of your broker.
the Analyst's answerJean Grossett - Financial analyst
The importance of a good broker cannot be over emphasized; however this cannot be a substitute for good trading strategy, risk management, money management as well as taking responsibility for your actions as a trader.
It is important to note that most brokers have their demo account trading servers different from their live accounts. What this implies is that certain operations like slippages may not apply to demo account, so a demo account is not a total substitute for real live account testing. Some brokers now offer cent accounts alongside micro account, which can be taken advantage of for live forward testing.
When choosing a broker, traders should first of all confirm that they are regulated with the necessary regulated authorities, where they have their headquarters. Traders should also take advantage of the live chat sessions provided by most brokers, to clarify on mind bugging questions, especially those information that cannot be found on their website. Also seeking reviews from forums without conflict of interest can go a long way in to finding out about the integrity of a broker.
Some brokers often offer trading competitions, and although these trading competitions can be a good risk free way of getting into markets, traders should understand that doing this consistently in a real life situation may not be realistic. This is because most competition only measure success by the account balance at the end of a trading cosmpetition. Such competitions can lead the traders into reckless behaviors in their live trading accounts.
Traders should ensure to read the terms and conditions documents provided by their brokers, especially the ones that have to do with conditions for withdrawal and deposits of funds. I once had an experience with a broker that changed their conditions for withdrawal of funds and included this in their terms of service which I did not noticed had been upgraded.