Reputable Forex Broker Vs. Dubious provider buy forex broker austria

Basically, when looking for a suitable forex broker you have to pay attention to basic aspects. Rational common sense and healthy skepticism are always advisable when it comes to entrusting money to a company. Before all of the many important aspects are of importance, it is thus first of all the general characteristics of reputable forex brokers that should be considered.

First of all, it is important to clarify the most important legal aspects. Who is behind the broker service and where is the company headquarters? Above all companies in so-called tax havens or overseas should not be considered, since the legal bases in these countries not seldom deviate very much from the European standards and thus in case of dispute a judicial regulation of the matter could be very difficult.

• Who runs the platform / website?
• Where is the broker’s place of business?
• Is a complete imprint visible?
• Are there any terms and conditions?
• Is there any indication of the legal status?

In addition, a complete imprint and comprehensive terms and conditions are a useful indicator of the seriousness of a company. On the one hand, this information is compulsory throughout the euro area, and on the other hand it is an important legal basis for possible legal disputes. Before you devote yourself to the details such as a demo account, the costs incurred or the peculiarities of a broker, pay attention to the first impression of the portal as well as the important legal basis for a reputable website. Finally, if you compare that first impression with neutral ratings from other traders, chances are very good to find a reputable and commendable broker.

Are there demo accounts?

If a reputable broker is found, it is important to take a closer look at the service offered. The first important aspect in this regard is the so-called demo account. As a rule, all well-known and reputable forex traders offer a free (and often unlimited) demo account. Signing up is easy and often requires little more than a username and a valid email address.

Interesting questions about the demo account are:

•  Are there a demo account?
• Is the demo account limited in time?
• IIf the demo account limited in functionality?
• Has the values ​​and details in the demo account correct (processed in real time)?
• Are there trading tips and trading instructions for beginners in the demo account?

Once created, the demo account allows a first realistic impression of the portal as well as its functions and special features. To assess whether the forex broker is really right for you, you should use the demo account for a few days to familiarize yourself with the way the broker works. Use the “play money” included in the demo account to get to know the possibilities of this broker and to find out if they are satisfied with the trading surface itself, but also with the tools and options offered and that they meet their expectations.

The deposit size and the initial capital

Another important aspect for choosing the right forex broker should be the size of the deposit as well as the initial capital. In general, many forex brokers offer a so-called standard account as well as so-called mini-accounts. The mini-account is often tempting due to the lower initial capital, but keep in mind that mini-books are often penalized compared to standard accounts.

Capital and reasonable leverage as protection against forced exit

For all traders who prefer active protection against forced exits, the appropriate broker should accordingly provide a high capital base and correspondingly reasonable leverage, in order to prevent a quick and usually unwanted forced exit in the best possible way. Of course, these options are not complete protection, but especially beginners will certainly appreciate these benefits.

How low are the spreads for the most common currency pairs?

If you are looking for the right forex broker, you are looking for a broker at the same time, who sets his profits low and thus sets his client low spreads. Because the so-called spread is the difference between the purchase value and the sales value, which the broker retains as profit. Low spreads on the most popular currency pairs are therefore preferable, since low spreads ultimately benefit the trader and represent cash in the account.

Is there a guaranteed stop-loss order?

Another important function (especially for beginners) is the so-called stop-loss order. This feature is primarily offered in stock trading and enables the automatic sale of an option, following limits previously set by the trader. Basically, the stop-loss order serves to limit possible losses and thus enables a calculable risk in forex trading.

Does the forex broker also offer an airbag function?

Whether for beginners or experienced forex traders, occasionally it can happen that a strategy is not happy and threatens the so-called margin. To avoid this, numerous forex brokers now offer the so-called airbag function. Because the airbag function leads to an automatic leveling of the option. This way, unnecessary losses can be contained and the risk in Forex trading sustainably reduced. Traders who use an airbag function generally do not need to fear the so-called obligation to pay additional funds, since the airbag function is activated before the margin requirement is entered.

Which tools and charting techniques are provided?

In addition to the stop-loss order and the airbag function, there are numerous possible functions and tools that forex brokers offer their investors. Depending on the broker, the scope of the tools and the supported charting techniques may vary. Beginners should first familiarize themselves with the tools they need to find the forex broker that offers exactly what they need or want. Experienced forex traders should be careful when looking for the right forex broker to ensure that the broker provides or supports at best all the tools and charting techniques you need.

What about the security of deposits?

One aspect that no forex trader should ignore is the broker’s deposit protection. There are various options for the forex broker to hedge the funds deposited by the investors. Basically, the bigger and more successful a broker is, the more stable the deposit protection should be. In Europe, deposit security is also ensured by regulators. Nevertheless, every trader should check the security of the deposits beforehand, in order to know the money invested in the end well secured and well kept.

What are the fees for the account, for transfers?

Equally crucial is the subject of fees. When choosing your forex broker, be aware of the costs and fees that will be incurred in the course of foreign exchange trading. First of all, the following aspects should be considered:

•   Is there any fees charged for deposits or withdrawals?
•  The tools available at no extra cost?
• If there any order fees? (These traps are usually only available to ECN brokers)
• Are there any costs for spreads, margins or general financing costs?
• Can further fees (eg: in the case of an obligation to pay additional funds) be attached to?

The resulting fees and costs should be clearly and transparently listed. A reputable forex broker is also characterized by providing support with details of all fees and charges in terms of fees and costs, and providing all potential information to the prospective customer or existing investo