Forex trading is quite risky and demands special skills and knowledge. These risks become even higher if the broker used is not reliable as the trader might become a victim of several scams and law violations. The main problem is that one will never detect this by advertisements as they always want to attract more clients and try to appear as the safest on a market. Here are some particular features possessed by reputable forex brokers;
1. CONFIRMATION OF LICENCE: In order to get access to financial markets, an intermediary should have rights to perform operations on them. If it does not have such a license, you can’t be sure that it will always play by the rules. If your intermediary does not respect laws, you cannot be certain that it will respect you.Therefore reputable forex brokers always have the necessary license required.
2. PRESENCE OF DEMO ACCOUNT: Demo accounts are never designed solely for beginner traders. Even if your broker is the the best forex broker, you may want to know its analytic capabilities, the set of assets, which are available for trade, etc. Reputable brokers allows an intermediary to practice on a demo account before going to trade in the market properly.
3. HIGH RANGE OF TRADING INSTRUMENTS: Diversification always reduces variation and risks. Reputable forex brokers gives access to a vast variety of currency pairs, shares, commodities, and other trading instruments so as to provide you with safe payout in any case. If a number of trading instruments is not high enough, the broker does not value your freedom of choice and your right to diversify;
4. THEY WARN AGAINSTRISKY INVESTMENTS: It is normal for the broker to inform you about lucrative opportunities of trading. But we should never forget that trading brings a lot of risks. If your broker informs you about opportunities without telling you about the risks, it doesn’t show you a full picture. One of the major qualities of a reputable broker is to offer information on the risk involved.
5. DEPOSIT AND WITHDRAWAL- They allow you deposit funds and withdraw earnings without any issue because the only reason they hold on to the funds is to facilitate trade.
Service reliability is not only about abiding to rules and showing transparency. Good broker always respects its clients. And if they have problems with a platform or some questions concerning the use of statistical instruments, customer support should always be ready to answer these questions. If you ask about some issue and the answer doesn’t come within the next ten minutes, you can’t be sure that if something more serious happens, they will respond quickly. Choose the broker who respects your time and financial freedom.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.