What do forex brokers do?

What do forex brokers do?

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Many people imagine Forex as a place where you can easily exchange one currency for another. But this is a difficult job, involving great risks. The trader has to regularly update his knowledge about the current market situation. In addition, the trader will have to choose a reliable broker.

A broker is a company that carries out transactions on Forex exchange markets. Of course, it is the trader who chooses all operations, but the implementation of the work falls on the shoulders of the broker. In addition, an individual cannot get into Forex and start trading. Only a broker carries out transactions, so it is very important to find a good assistant.

How is the rating of the best brokers compiled?

If you think that the rating of Forex brokers is made at random, you are deeply mistaken. This is a difficult task. Several experts study all the criteria and make independent assessments. This is a colossal job.

  • The amount of the commission. Our mission is the commission. This is the motto of all brokers. It is from the commission that their main earnings come, so the task of brokers is for you to trade as often as possible.

  • Fixed payments. This is usually a fee for depository services. Securities that are bought through the exchange are not stored with a broker, they are stored in a depository, and the depository takes money for storing your securities in its registry. Also, brokers sometimes take money if your account is less than a certain amount.

  • The choice of securities. Some brokers do not have US stocks, others do not have certain ETF funds, and others do not have any bonds. A wide range of tools is the cornerstone of a good broker.

  • The convenience of the application and the site. Now, the vast majority of investors use mobile applications. The era of QUICK terminals with their interface from the 1990s is gone. But it's still good when a broker has an application, a web-based. 

  • Remote account opening. The ability to open an account without having a visit the office or wait in lines is extremely convenient, especially during the coronavirus. In addition, the account can be opened from another country or a small town where there is no broker's office.

  • Deposit and withdrawal of money. Ideally, the crediting and withdrawal of money should be commission-free and online, plus there should be no barriers in the style of "we withdraw only to our bank card."

  • Minimum budget for opening an account. If your account is less than a certain amount, you may be charged increased commissions and fees. Surprisingly, some brokers still follow this practice.

  • Support. It's not very pleasant to call a broker, hang on the phone for 20 minutes, then wait until you are transferred to 2-3 employees, and at the end to hear "We don't know how to solve the issue, come to the office." Also, now a new trend in customer support is online chat, the quality of responses there plays an even greater role than over the phone.

As you can see, the rating is based on many characteristics. The compilers of the list do a lot of work before publishing the rating. Only the best of the best are included in the rating. Such brokers have extensive experience and favorable conditions. Their reputation is good, and clients speak well of the work of brokers.

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