The most important decision a trader will make in their career might not be the single trade that made them millions, this in itself is rarer than hen’s teeth. Successful traders will often state that their most important decision was choosing the right broker for their needs. When a construction project begins a lot of emphasis and care is given to the foundation. The exact amount of care and consideration should be given by traders to their choice in broker or brokerage app.
At Pocket Option, being an experienced team of talented IT and FIntech professionals, we saw this choice as the empowering decision that allowed traders to profit from trades. Since 2017 we have striven to make our platform not only convenient and easy to use so that beginner and experienced traders can make sound decisions but transparent. This way our clients remain in the loop with our operations while giving the platform they need to realize profits.
Proven Track Record and Trustworthy
The Internet is full of guides to assist you in choosing a broker or brokerage app. Sadly, many of these come in the form of a top 10 list light on details or worse advice for experienced investors looking to diversify their portfolio. For the beginner or even a trader unhappy with their current broker, these articles are of little use. For that reason, we have set out to give you all the information you need to empower you to make the right decision.
Your first step in determining whether a broker is right for you is doing a bit of research to determine they are exactly who they say they are. Often the first port of call will be to see if they have a proven track record of providing a trustworthy platform. To do this first see if the brokerage in question is registered with a regulatory body like the International Financial Market Relations Regulation Center (IFMRRC). Regulatory bodies like the IFMRRC have been set up to provide regulatory standards that brokers have to adhere to for certification. These standards are driven by providing high-quality services across several financial instruments.
Once you’ve determined that the broker in question adheres to a higher set of standards, normally in the form of a regulatory certification, then turn to your fellow traders. Read their reviews on the pros and cons of choosing a said broker. If the reviews are overwhelmingly positive and in the several hundred it can be safe to assume the platform is trustworthy. This assumption is done with the knowledge the broker adheres to regulatory guiding principles, of course.
Platform, Education, and Features
The next thing to check is if the platform is not only easy-to-use but forward thinking by looking to provide you with all the up-to-minute information you need to profit from trades. Many online brokers now offer the ability to use a demo account to test out their platform and this is the perfect way to test the requirements mentioned above. The use of a demo account will also help you to determine all the features offered by the platform. You should be asking what graphs, trading information, and risk management features are offered by the broker to assist in making a profitable trade.
Another important factor in your decision is education. At Pocket Option we feel this is one of the best ways to turn our clients profitable, helping our own success. By sharing a knowledge base more can take advantage of the knowledge to turn trades profitable by helping traders make informed decisions on trades. When choosing a broker see what they provide with the intent of making you a better trader. The education provided should not just cover the basics but help provide vital information throughout your trading career.
The Fine Print
Lastly, read the fine print of the broker’s terms and conditions. As tedious as it can be this will help you realize exactly what you are getting into. One thing to look out for in the fine print is how and if the payment order flow is done by the broker. Payment order flow is when your broker uses a third-party market maker to initiate the trade, this is often a bank or financial institution. These third-party market makers often want as many trades processed as possible, often incentivizing brokers to send as many as possible regardless of the outcome.
This practice has drawn some criticism, however, it is a reality that traders should be aware of and often the only way to find out if your broker applies payment order flow procedures is to read the fine print. Reading the fine print will also illuminate all of the fees associated with trades, if any, and the withdrawal policy. Account fees and account minimums will also be covered in the terms and conditions you’ll have to sign.
As can be seen choosing your broker or brokerage app is not as simple as just signing up. Doing your due diligence will not only save pennies but a good decision can increase your profitability significantly. It is hoped that this article illuminates the most important factors that will help you decide who will be your trading partner for both the short and long term.
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