{"id":1019427,"date":"2020-04-04T00:57:41","date_gmt":"2020-04-04T07:57:41","guid":{"rendered":"https:\/\/www.tradingheroes.com\/?page_id=1019427"},"modified":"2021-05-19T17:54:54","modified_gmt":"2021-05-20T00:54:54","slug":"how-to-choose-the-right-forex-broker","status":"publish","type":"page","link":"https:\/\/www.tradingheroes.com\/free-forex-trading-course\/how-to-choose-the-right-forex-broker\/","title":{"rendered":"Chapter 9: How to Choose the Right Forex Broker"},"content":{"rendered":"<h3 style=\"text-align: center;\">Share This Course: [addtoany]<\/h3>\n<p>&nbsp;<\/p>\n<p>Choosing the right Forex broker is an important step for any Forex trader. You'll be giving your trading capital to this broker, so check them out before you make a deposit.<\/p>\n<p>Alright, here's what beginners should look for&#8230;<\/p>\n<h2>Do Your Due Diligence<\/h2>\n<p>Forex brokers come and go, so it's important to do your basic research on a broker. This can be done in about an hour on the internet.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-1019434\" src=\"https:\/\/www.tradingheroes.com\/wp-content\/uploads\/research.jpg\" alt=\"Research online\" width=\"1200\" height=\"600\" srcset=\"https:\/\/www.tradingheroes.com\/wp-content\/uploads\/research.jpg 1200w, https:\/\/www.tradingheroes.com\/wp-content\/uploads\/research-768x384.jpg 768w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p>Find out things like:<\/p>\n<ul>\n<li>Which country are they regulated in? Is it a country with strict regulation?<\/li>\n<li>Are they actually registered with the agency that they say they are? Some shady brokers will list a registration number, but won't actually be registered (<a href=\"https:\/\/www.tradingheroes.com\/is-mitsuifx-a-huge-scam-you-be-the-judge\/\" target=\"_blank\" rel=\"noopener noreferrer\">example<\/a>).<\/li>\n<li>How much do they have in capital reserves? This information is not always available, but the more the better.<\/li>\n<li>How long have they been in business? There are legit new brokers, but a broker is generally more reliable if they have been around for awhile.<\/li>\n<li>Does the broker accept customers from your country?<\/li>\n<li>Are there any registered complaints about the broker, with the regulating body?<\/li>\n<\/ul>\n<p>Many beginners look for brokers with the lowest spreads, but ignore the points above. <strong>These factors are much more important than a low spread.<\/strong><\/p>\n<p>To find out which brokers I suggest, <a href=\"https:\/\/www.tradingheroes.com\/resources\/best-forex-brokers\/\" target=\"_blank\" rel=\"noopener noreferrer\">see the short list here<\/a>.<\/p>\n<p>If the broker looks good after your research, then take a look the following factors.<\/p>\n<h2>What to Look for in a Forex Broker<\/h2>\n<p>Now take a look at:<\/p>\n<ul>\n<li>Are the spreads fixed or variable?<\/li>\n<li>Do you pay a spread, a commission, or both?<\/li>\n<li>How much does it cost to deposit and withdraw money?<\/li>\n<li>Is it easy to withdraw and deposit money?<\/li>\n<li>What's the minimum deposit amount?<\/li>\n<li>Is the broker ECN or Dealing Desk? Each has advantages and disadvantages.<\/li>\n<\/ul>\n<p>There are no right or wrong answers here. Choose what works best for you.<\/p>\n<h2>How to Test a Broker<\/h2>\n<p>Once you have done some basic due diligence on a broker or a few brokers, it's time to get some first hand data. Their website might look good, but now you want to really put them to the test&#8230;without risking a lot of money.<\/p>\n<p>This is a good way to do it&#8230;<\/p>\n<h3>1. Read Reviews About a Broker<\/h3>\n<p><strong>Keep in mind that a lot of people are going to blame their lack of trading skill on their broker. That's one big reason that over 90% of aspiring traders fail.<\/strong><\/p>\n<p><em>So always take reviews with a grain of salt.\u00a0<\/em><\/p>\n<p>However, look for common themes that could be objective, such as:<\/p>\n<ul>\n<li>Not being able to withdraw money in a timely manner<\/li>\n<li>Charging large fees or percentages for withdrawing money<\/li>\n<li>The broker charges inactivity fees<\/li>\n<li>Unresponsive support<\/li>\n<li>Complaints about being solicited for other third party services like EAs or money management<\/li>\n<\/ul>\n<p>Reviews to ignore are the ones that have subjective comments about things like:<\/p>\n<ul>\n<li>Complaints about running stop losses (major licensed brokers <a href=\"https:\/\/www.tradingheroes.com\/do-brokers-hunt-your-stop-losses\/\">won't run stops<\/a>, getting stopped out a lot is usually due to setting stops too tight)<\/li>\n<li>Complaints about rude customer service<\/li>\n<li>Complaints about the broker trading against the client (another rookie complaint)<\/li>\n<\/ul>\n<p>You can also talk to real traders and ask them which broker they trade with.<\/p>\n<h3>2. Test Their Customer Service<\/h3>\n<p>Next, contact a prospective broker and ask some questions. It doesn't matter what you ask them, but what you are really looking for is:<\/p>\n<ul>\n<li>How quickly do they get back to you?<\/li>\n<li>How good are their communication skills?<\/li>\n<li>Are they genuinely helpful, or are they using canned responses?<\/li>\n<li>How easy is it to contact them? Can you call a number and talk to someone immediately, or are you going to wait 3 days for an email?<\/li>\n<\/ul>\n<p>This can give you a lot of clues on how you will be treated later. If a broker has poor service if you aren't a customer, imagine what it will be like when they already have your money.<\/p>\n<h3>3. Deposit and Withdraw a Small Amount of Money<\/h3>\n<p>Finally, when you find a broker that you like, the final test is to deposit a small amount of money.<\/p>\n<p>Wait a couple of weeks after the deposit clears, then withdraw part of that money. A legit broker will allow you to withdraw your money with ease. They might charge you a small service fee, but nothing outrageous.<\/p>\n<p>I've heard of some shady &#8220;brokers&#8221; charging a 20% &#8220;withdrawal fee.&#8221; Which is ridiculous of course, and the sure sign of a scam.<\/p>\n<p>Any broker will make it easy to deposit money. The shady brokers will make it hard to withdraw.<\/p>\n<p>Alright, that's what you should look for in a broker.<\/p>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: center;\">You're on a Roll!<\/h2>\n<p style=\"text-align: center;\">Now that you understand what to look for in a broker, let's keep the ball rolling&#8230;<\/p>\n<div class=\"su-button-center\"><a href=\"https:\/\/www.tradingheroes.com\/free-forex-trading-course\/get-best-forex-trading-tools\/\" class=\"su-button su-button-style-3d\" style=\"color:#FFFFFF;background-color:#ffa035;border-color:#cc802b;border-radius:5px\" target=\"_self\"><span style=\"color:#FFFFFF;padding:0px 40px;font-size:29px;line-height:58px;border-color:#ffbd72;border-radius:5px;text-shadow:none\"> Go to Chapter 10<\/span><\/a><\/div>\n<p>&nbsp;<\/p>\n<h3 style=\"text-align: center;\">Share This Course: [addtoany]<\/h3>\n","protected":false},"excerpt":{"rendered":"<p>This lesson will give you important things to look for in your first Forex broker. You&#8217;ll also learn how to test a broker with a very small amount of money. <\/p>\n","protected":false},"author":1,"featured_media":1019434,"parent":12916,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-1019427","page","type-page","status-publish","has-post-thumbnail"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Chapter 9: How to Choose the Right Forex Broker - Trading Heroes<\/title>\n<meta name=\"description\" content=\"Learn what to look for in the right Forex broker. 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