If you are about to start trading online, you probably have several important questions, that can easily be answered if you are patient. In addition to learning about how to trade, it’s important that you perform due diligence, and find a broker that will help you meet your trading goals. Whether you are looking for lightning fast execution or a broad educational section, scanning the internet to find a review such as the iFOREX review, will be a key to your success.
Common Questions and Answers
How do I Know if a Broker is Reputable?
Forex brokers are reviewed just like most services. Like the way you would look up a review of a restaurant or hotel, you can find information about brokers through the internet. There are several websites geared to reviewing brokers and will compare and contracts their attributes.
How Can I Test My Strategy Before I Risk My Capital?
Many forex brokers provide clients with demonstration accounts. Demonstration money is paper money and some brokers allow you to trade their platform using only demonstration funds. The profits and losses that you experience are in real-time, allowing you to test drive your strategy before you risk your money.
How Do Brokers Make Money?
Most forex and CFD brokers make money by facilitating the execution of your transactions. Some brokers will charge a commission, but most with generate revenue from a bid/offer spread. This is the difference between where you can buy and where you can sell a security, which the broker then offsets in the open market.
Are FOREX and CFD Brokers Regulated
Most FOREX and CFD brokers are regulated, in a country or a region. Some regulators are more stringent than others. The U.S. SEC and the U.K. FSA are some of the strictest regulators. Products like CFDs are not traded in the United States. If the broker you are evaluating is not regulated, you should consider determining the pros and cons of a regulated broker.
Are There Mobile Trading Platforms?
Many brokers offer mobile platforms that allow you to trade on the go. This is an important feature for many traders, as some are managing positions while at other jobs, or in transit. Check out the features available on a mobile platform to make sure they provide you with the tools you need to successfully trade.
Is My Money Safe?
Your broker should have an encrypted money transfer facility which should be state of the art. Be certain to find out how long it takes to deposit funds and how much time the broker takes to return your funds if you ask for a redemption.
Should I Accept a Broker Deposit Bonus?
A deposit bonus is just an incentive to trade for free. The broker is not giving you funds that you can easily withdraw. Instead, you are receiving a credit that you can use against commissions or your bid offer spread. The broker’s goal is to get you used to trading more volume, which you need to be aware of.