The trend of online forex trading in the financial markets has become very popular in the recent times. Doing this is very convenient since you only need a bank account with enough money to make an initial deposit in your trading account. There are also mobile based applications that allow you to trade from anywhere around the world.
Choosing a good forex broker is one of the most important things in the field of forex trading. You can choose platforms like robinhood after reading robinhood review. However, traders still make mistakes when choosing a forex broker.
Here are the mistakes that you should avoid when choosing a forex broker for your trading needs.
No Checking The Licenses
There are certain laws that forex brokers must follow in order to keep providing their services in a certain financial market. Also, make sure that you forex broker you choose has all the needed licenses to provide reliable services.
There are different regulatory authorities for every market, so, make sure that the broker you choose is regulated by an authority working in your country.
Choosing Low Commission Brokers
There are nothing wrong with choosing a good forex broker with lower than average commission rate, but making this a criteria for choosing the trading firm is not a good idea. So, make sure that the low prices do not mean low quality services as well.
When checking the commission rates of different brokers, also compare the quality of services they provide. You should ideally select the percent balance between commission and services provided.
Relying on One Broker Only
Relying completely on one broker is also a mistake that many novice investors make. This is especially true if you are planning both to invest and trade. The best strategy to invest and trade at the same time is using two brokers. Even for the people who are only investing, choosing two or more separate brokers is recommended.