HOW TO FIND A GOOD FOREX OR STOCK BROKER
If you wish to trade in the forex or stock markets then you definitely need to find a broker that will be the link between you and the world of finance.
The main concern for any trader is therefore to find a good broker that can truly be an asset for him/her and that provides a satisfactory service in exchange for the fees (mainly the spread between the buying and selling price) they charge their clients for the use of their services. Doesn't matter how big or how small your trading account is.
So, how do you find a good broker then?
Well, the best thing to do is to analyze and compare the different brokers in trustworthy websites such as www.binaryforexbrokers.net However, do not take for granted the reviews you read on any website, because it can be that a broker has changed terms and conditions just a few days or hours before your reading and therefore it's always better to check on the broker's website directly if any changes have happened or are on the way. Just do some diligent work before opening a real account and you'll be safe forever.
Anyway, all the brokers listed in this website are thoroughly analyzed for theit integrity and all of them are “Authorized” brokers from the various licensing authorities around the globe.
When you open a new account with any broker, just tell them your financial capability and your objectives in the world of trading. Don't be shy if you wish to open an account with only $100. Certainly their charges differ between the various account sizes, but that's life and you know that the larger is your deposit the lower will be your expenses.
If you wish to trade stocks you'd better tell your broker also about the kind of revenue you wish to get from your investments and whether you are looking for income, growth, diversity, or simply playing hunches. Just be frank with them and they will only be too pleased to help you get the best out of your money simply because the more you trade and the longer you'll be their client, the more commission they will earn from your trading activities. So don't worry, brokers are not there to reap you off but they are to be seen instead as your partners and allies in the world of finance. Just build a decent and friendly relationship with them, be polite, don't cheat and they will respect and allow you to make money in return.
Another thing not to be scared of is the so called high-pressure sales. Remember that you do not need to invest any money more than you can afford and serious brokers do not really do this to push clients. Actually the majority of them are paying their representatives salaries, rather than commissions, to eliminate the possibility of personal involvement in whether you buy or not.
How to open a trading account
Once you have decided with which reputable broker you are going to open your first or next account then go ahead and just do it. It's basically free. It's like opening a bank account where the bank needs to know who you are through the verification of your documents and what your credit is so that you can actually pay for the “products” you'll purchase through them. That's all.
The broker will not send you a monthly bill unlike with trade suppliers, but just accept from you what you wish to invest. Simple.
Of course there are several types of accounts available and all really depends from you, the trader, wheter you need to open a simple cash trading account in your name or a joint account with your wife, husband or partner. It;s also possible to open a joint trading account with a business partner/s.
Margin accounts are an extension of cash accounts which permit clients to buy on margin, meaning that the broker is willing to loan you part of the purchase price of your securities. Obviously credit investigation is somewhat more searching.
Discretionary accounts may also be set up in special circumstances. This means giving your broker a power of attorney to decide when and what you should buy or sell.
How much will the broker charge you
As stated above, the main source of income for brokers is the so called “spread” which is the difference between the buying and selling price of a currency pair in the case of forex trading, and the buying and selling price of stocks, plus other commissions that might apply depending on the type of service required with each account. Once again, it's better to enquire about this beforehand and be sure that you know what the cost of your trading will be.
Generally speaking, internet has made broker fees come down and the quality of services go up due to the stiff competition between the multitude of online brokers operating from all over the globe.
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