If you want to trade with Forex, you have to pick a Forex broker first. This is easier said than done because there are thousands of Forex broker out there and it’s not easy to spot the right broker. There are plenty of Forex broker that are serious but also a couple of broker that try to scam you. Obviously you have to avoid this and this is the most important criterion of a good Forex broker. Here at Brokerreviews we only list trusted Forex broker that don’t scam. However, we show you how to find out if a broker is a scam or not.
First of all you should use Google. The Internet offers great opportunities for everybody to spread their thoughts. You can use Twitter, your blog or forums to let the whole world know what you think. This is very important when it comes to scams. You can defend others from being scammed just by telling others your experience.
So if you want to know if a certain Forex broker is a scam you should first Google the broker’s name and add “scam” to it. Then you will find results for every single Forex broker there is. Why? Because even if the broker is serious, some people think it’s a scam because they lost. This is how human react when a negative event occurs they did not expect. It’s not their fault but it’s the broker’s fault. Simple as that. This makes it hard to distinguish real scam reports from fake ones. And you have to go with the majority. If 1 out of 1000 people says this is a scam it certainly isn’t. But if 50 of 100 people say it is a scam it surely is. So you should count the scam reports and make an estimate: is this a very big Forex broker or a small one? If it’s small and you can find several scam reports you should stay away. If it’s a big broker you can find a few more scam reports without unfolding a scam.
Once you found Forex broker that don’t scam (we make it easy for you because we only list Forex broker that don’t scam. This saves you some time) you should take a look at other factors like the software of the Forex broker.
A good Forex broker offers either his own platform that has some unique features or simply uses the most common and popular Metatrader platform. A good Forex broker also offers a webtrader where you can trade in your browser without making a download. This is especially important when you want to be independent and want to trade everywhere, not only at your home office PC.
It’s very important that you can get used to the platform very fast. And indeed most of the forex platforms have a decent usability where can find out quick how to trade properly. Etoro is a good example for a unique and good Forex platform that is so easy to use and to trade with.
A good Forex broker also offers some good promotions that compensate for trading. For example, a good Forex bonus. A bonus is money that will be credited to your account after your first deposit. So if you make a deposit of $ 100 you can get a $ 50 bonus (at AvaTrade for example). This is a very nice gesture and makes it easier for you to compensate losses or make even more profit. Of course, you should not pick the Forex broker with the highest bonus. This would be too naiv. But when it comes to find the right Forex broker for you, you should take the bonus into consideration.
The price that you pay is always important. And the price you pay while you trade with currencies is called Spread. In the long term, you have to beat at least the spread if you want to trade profitably. Forex broker offer different spreads and you have to pay attention. Spreads like 6 Pips are huge and almost unbeatable. A good Forex broker should offer a spread between 2 and 3 for the most common currencies. And luckily, most of the Forex broker offer spreads in this direction.
Obviously, it all depends on your own preferences. That means that if a good Forex platform is more important to you than a good Forex bonus than you should focus on the platform and don’t pay too much attention to the bonus a broker offers.
There are also a couple of other factors you have to consider but they may not be important to everybody. That’s why we did not talk about them in detail.