When you’re first getting into trading, few decisions are more important than your choice of broker. It can make all the difference to your success or failure as a trader. The tricky thing is, there’s no one size fits all list of best brokers out there. You need to find the one that’s right for you, and that means being clear about your aims from the start. It also means knowing what to look out for.
Anywhere that you find inexperienced shoppers, you’ll find people selling dodgy products, and the world of trading is no different. Don’t let unscrupulous brokers swindle you. Be wary of cold callers and deals that sound too good to be true. Check that your broker is properly registered and look them up online rather than just following their link to a website, because sometimes those websites are fake. Look for a well-known broker with a good reputation.
New traders are often on the lookout for the cheapest deals but that’s not as beneficial as it might sound. The advantage gained from low trading fees might be lost due to high costs for maintaining your account or withdrawing money. Be especially wary of hidden fees. Check independent sources if you can’t find clear information on this – to read an Avatrade review click here and you will see how much easier it is to find the information that matters.
Different brokers offer assets of different types, some focusing on just one type – such as the stock market or forex – and others offering multiple types. Within each type, some offer much broader selections than others, but the broadest are not necessarily the best. What suits you best will depend on your trading style. As long as you’re careful about fees there’s nothing to stop you having more than one account with different brokers.
Platforms and facilities
Some popular trading platforms are compatible with multiple broker services, but other brokers offer – or use exclusively – their own bespoke platforms. Each of these is supposed to be intuitive but to find out what actually works that way for you, it’s best to get a demo account and spend some hands-on time exploring. It’s really important to be able to find what you want quickly so that you are not delayed when trying to clinch important trades.
Education and support
When you’re new to trading there’s a lot to learn, and the most successful traders never stop looking for learning opportunities. Many brokers provide training videos, advice and even livestreamed seminars to help their clients. Some also have very good helplines where you can get support to tackle any problems. It’s also worth looking for a broker with a forum where there’s a good community atmosphere and where traders help each other.
With these things in mind, it’s much easier to find the right broker for your needs. You can always change your mind later on, but many traders find that once they’ve found a broker they’re comfortable with, they settle into a long and fruitful relationship.