The internet is a wonderful tool. However, it can be a difficult beast to tame as it throws so many options at us daily.
If you wish to buy groceries and have them delivered, you will be faced with a choice of dozens of supermarkets that will deliver right to your door. You may be looking for antivirus software online. You will quickly realize that there are so many on the market, offering slightly different packages for slightly different prices, and the sheer amount of choice can quickly give us a headache.
Netflix. How many of us load up Netflix and spend so much time searching for something to watch, that when we finally pick something, we have gotten on our own nerves so much, we do not even feel like watching anything!?
Choice can be a blessing and a curse.
This article will explore different Forex broker features and what you as a trader, should look for when identifying a quality broker that you can not only trust but get the most satisfaction from.
Trading conditions
There are a few conditions that one should look for in a broker. These include:
- Spread
- Execution speeds
- Leverage
Spread
The spread is the difference between the bid and the ask price. Look for a broker that offers tight spreads. The tighter the better.
New STP broker, Eagle FX offers highly competitive spreads on all assets within their platform. The site uses an advanced pricing system to ensure all spreads closely follow the major global markets ensuring clients receive the best possible trading conditions.
A great feature within the Eagle FX, is that you can review the Live Spreads of FX Majors and Crypto pairs directly through their site without being required to set up an account.
Execution speed
This is how fast your order will be confirmed. Look for a broker that offers Straight Through Processing (STP) This means that your order will not go through a dealing desk and be filled right away. If a broker offers lightning-fast execution speeds, it is well worth taking a closer look at the other product features the broker offers. The quicker the execution, the less time waiting and running the risk of missing out on a crucial market movement.
Leverage
High leverage is an efficient and effective way to trade higher positions with less initial investment. Experienced traders like to benefit from high leverage, particularly in Forex trading as it allows making higher gains with less capital. Leverage is, in essence, a loan within a trading account.
One of the many attractive features of high leverage is that it frees up additional capital enabling a trader to get involved in more trades, simultaneously. This is particularly useful when there is a busy schedule showing on the global economic calendar.
To give an insight on the maths behind leverage: a leverage setting of 1:100 allows a trader the opportunity to trade with $5,000 from a $50 investment. Trading with high leverage can boost your earning potential without having to invest larger amounts of capital whilst enabling greater control of trades one may be involved in.
Be wary, trading with higher leverage can maximize your earning potential but it can also magnify losses.
Account Types
If you are new to trading and especially new to trading with high leverage, it is worth developing a strategy before entering the market. This can be done in a variety of ways including doing your research, reading, watching seminars, etc but the most useful way to develop a strategy would be to make use of a demo account.
Many brokers offer a free to use demo account within their site. This is especially useful if you are trading a volatile asset such as Cryptocurrency, practicing trading with leverage or getting to grips with a platform that you have never used before, whether that be MT4, MT5 or another unfamiliar platform to you. MT4 contains a vast amount of functions and features so it would be well worth having some practice on tools like this before depositing real money.
Eagle FX is happy to keep things straight forward and offer one type of account. There are no set parameters or terms when setting up an account. The deposit minimum is $10.00 with no hidden clauses. Keeping one account type enables less experienced traders to share the same pristine trading conditions as ‘more experienced’ traders.
Additionally, the site offers an affiliate program giving traders a chance to increase their earning potential and it’s completely free! All one has to do is refer a friend and start earning commission based on trades placed by the friend. Every trade carries a commission of $4 for every completed trade made by the person you referred. A great scheme and way to boost your earnings especially if you already have your online following.
Deposits and Withdrawals
This is massively important as this will determine how lucid your funds are. Moreover, how quickly can you get funds IN and OUT of a broker?
A good place to start with this is to review what payment methods a broker offers. The more variety then, great! However, ensure the site offers Cryptocurrency as a deposit/withdrawal method. This will ensure rapid deposits and not having to wait days to wait for a deposit to land in your account using outdated wire transfers. Crypto trading is volatile so you may miss a market movement when waiting for a wire deposit to land and then not want to enter the market.
Withdrawing via Bitcoin also ensures you will have the funds back in your wallet within an hour of being processed. Using Bitcoin ensures that you as a trader can have rapid access to trading your favorite digital assets.
Account Security
What can a broker do to ensure the safety of your funds? If you are trading Crypto and using Bitcoin as a deposit method you may feel uneasy that this ‘online money’ may be vulnerable to hackers… With the use of cold storage, this is not the case. If a broker does use cold storage then fantastic. It ensures that funds are kept completely offline away from potential online threats. It also shows that the broker cares about safety.
Furthermore, look for a broker that keeps broker funds completely separate to client funds which will ensure that you will receive a requested withdrawal amount in full.
Customer support
Even the most seasoned traders and IT professionals all need a little support sometimes so look for a broker which will have a dedicated team of professionals available around the clock. A broker with a LiveChat feature is perfect to ask little questions whenever you need it. It certainly adds comfort knowing that there is support there should you need it.
Conclusion
If you are in the market for a new Forex broker or indeed searching for your first broker, do not feel that you have to sign up to the first broker you come across. Take your time, shop around and find the right broker that best suits your needs.
Find a broker that will be available for you when you need assistance and ensure the broker offers straight-through processing. If a broker has additional features such as educational sections and economic calendars then even better. This will help you build on your existing knowledge and make you aware of the latest events around the globe which will affect the markets – giving you an added edge!
Eagle FX offers its clients over 200 tradable assets including generous leverage on Forex and Cryptocurrencies. Sign up is free. Start trading your favorite digital assets today!
Keep calm and choose the right broker for you!
