What is a Broker?
The person or firm that will assist you in buying or selling a financial product.
Why do I need a broker?
Financial regulators will not allow you to trade with leverage in capital markets without a broker.
Do you require a specific brokerage to use your service?
No we do not require a specific brokerage. You can use any broker of your choice.
What to look out for in a brokerage?
There are two categories of brokers. Regulated and Unregulated.
Regulated brokers are those who are registered with a financial regulatory body of the country/countries they operate in and they must comply with the rules set by that specific authority. Working with a regulated broker comes with security but can have its limitations depending on the size of the used capital.
Unregulated brokers do not have to comply with any rules and can behave in any way they choose to behave. Working with an unregulated broker can lead exposure to higher levels of risk.
The forex world is liquid and it leaves room to many scams.
The advantages of working with a Regulated Broker are:
- Transparency in trading processes
- Trader fund security
- The remedy in case of a dispute
- Protection from fraudulent activity
The disadvantages of working with a Regulated Broker:
- Limited leverage
- Limited financial products to trade based on amount of available capital
The advantages of working with an Unregulated Brokerage
- Freedom and flexibility in trading
- Access to higher leverage
- Not restricted to financial products
- Ability to begin trading with small accounts
The disadvantages of working with a Unregulated Broker:
- No security
- High levels of fraud
- No capital protection
- No transparency
What brokers do you recommend?
For United States Clients:
For International Clients:
Being financially regulated is very important and equally important is the environment, the tools and support the broker provides.
When you begin your search for a broker make sure they have a trading platform which is easy to navigate and has all the needed tools, including advanced charts and optimal speed. Check for the availability of a variety of accounts with features you need, suitable minimum deposit requirements, the right spread and leverage. In addition check their list of products to make sure they have what you are looking for, check their availability for support, if they have an account manager, the operating schedule of their customer support and if they have headquarters you can verify.
Knowledge is power, do your research before choosing a broker.