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How to Choose the Right Broker: Things to Consider
Bitcoinist | Apr 25, 2019 | 06:00
Finding the right broker or trading platform does come with a certain set of challenges. There are a few important things to consider, so let’s dive right into it.
Right off the bat, the very first thing to account for is your very own trading style and needs. Naturally, this would depend on your level of advancement: whether you are a beginner or an experienced trader. In the former scenario it’s more about having the necessary resources, while in the latter, it’s more about having all the suitable tools as well as technology infrastructure cut for the needs of the advanced trader.
Choosing the right broker would also depend on how active you are. Even more so, it would depend on your investment style and strategy. Certain brokers have set limits such as minimum deposit amount and account minimums. These tend to be geared for a larger investor rather than small-scale retail participants.
Other brokers aren’t appropriate for less active traders or those who are looking to invest for the longer term. This is predicated on inactivity fees, annual fees, and trading platform fees. While these expenses might not seem like much at the start, they can quickly stack up to a lot of money over time.
Rule #1: Always Check Fees
As a general rule of thumb, you should avoid brokers with high commissions. Always seek those who are providing reasonable fees. This is done fairly easily – you can always research online and find out the broker’s fee policy.
Keep in mind that there are brokers who would charge hidden commissions. That’s why proper, in-depth research is so important. You can find out which brokers to avoid by checking online reviews and scouting for negative user reports. This will help you identify the venues who tend to impose unethical practices.
When you’re looking at a selected broker, you should try to see the bigger picture. Evolve.Markets, for example, boasts a powerful trading infrastructure but also provides important instruments such as negative balance protection, geared at limiting the losses a trader can incur. Moreover, the platform understands the importance of timing and provides fast and easy account creation as well as timely funds deposit after only 1 confirmation.
Rule #2: Security and Transparency
In the space of cryptocurrencies, security is of paramount importance. It should always come in the first place. You should aim to settle for a broker which provides reliable infrastructure, as well as advanced safety measures.
Perhaps adding to this point is transparency. A good broker shouldn’t only settle for transparent fee policy, but also for a properly devised order book, displaying real market prices and volumes, narrow spreads, appropriate liquidity, and other factors which provide for seamless trading experiences.
Rule #3: Access
The cryptocurrency market is particularly intensive on its own. However, it’s not the only market out there and it’s important to remember there are trading opportunities on other markets, especially during shorter or longer crypto downtrends.
Evolve.Markets is a crypto-first trading platform providing high leverage trading on a broad variety of cryptocurrency trading pairs. However, it also gives its users access to trading on traditional markets such as Forex, commodities, and indices. Diversification is important and having the option to navigate through a variety of markets is always beneficial.
Rule #4: Support
Regardless of how advanced your broker might be, there will always come a time when you’ll need some additional customer support.
An essential consideration for choosing the best broker is to make sure that the customer support responds quickly and that it provides help when you need it. Positive trading experience is largely predicated on quick solving of underlying issues, as well as flawless customer service.
What are the things you are looking for when choosing your broker? Don’t hesitate to let us know in the comments below!
